Thinking about a part-time business... (PV)

[DownRiverGUy]

Hey guys,

So after crunching numbers in my head it seems like I can make a nice living doing some PV work. BUT I would be very green in regards to starting the business (green as in new not hippy green )... would like your guys thoughts.

I was thinking that I'd need the following things:
Bank/Banks that would offer programs for financing the PV systems to homeowners
Preferred roofer that I could contact in case the clients roof needed to be redone prior to PV install
A licensed electrician for the connection to the panelboard and/or service work as required to get the system up to code for the PV installation.

Being an engineer instead of an electrician complicates this a bit but I think it's still possible.

If I was the only employee and sub-contracted out any work (as stated above) would I need to have any insurance etc by law?

Cost wise PER job I see.... Materials, Permits, Electrician, Roofer (as required), Labor (for PV install), Design time.

Cost wise in general I see... Marketing, Conferences for continuing education.

Am I nuts? What do you guys think?

 

[George Stolz]

A nice living can be had doing pv work, I've seen it.

Have you ever installed a pv system?

 

[mcclary's electrical]

Hey guys,

So after crunching numbers in my head it seems like I can make a nice living doing some PV work. BUT I would be very green in regards to starting the business (green as in new not hippy green )... would like your guys thoughts.

I was thinking that I'd need the following things:
Bank/Banks that would offer programs for financing the PV systems to homeowners
Preferred roofer that I could contact in case the clients roof needed to be redone prior to PV install
A licensed electrician for the connection to the panelboard and/or service work as required to get the system up to code for the PV installation.

Being an engineer instead of an electrician complicates this a bit but I think it's still possible.

If I was the only employee and sub-contracted out any work (as stated above) would I need to have any insurance etc by law?

Cost wise PER job I see.... Materials, Permits, Electrician, Roofer (as required), Labor (for PV install), Design time.

Cost wise in general I see... Marketing, Conferences for continuing education.

Am I nuts? What do you guys think?

If you're the only employee, most places you can get away with no workmans comp.(but you need to guarantee the subs have it) you still need business license and contractors license. Along with liability insurance. Sub out the trade work.

 

[DownRiverGUy]

Yes I design them with my current firm (much LARGER systems and we only do design so I don't see a conflict doing it on the weekends to test the waters).

I've also installed a few and have had plenty of hours with John Wiles discussing PV. I have the knowledge and can install them but i'm just terrified of the actual "business" aspect of it.

 

[DownRiverGUy]

So the thought is that for this work because i'd need roofers and electricains that I would have to be a fully licenced contractor?

Seems like that may be overdoing it but I wouldn't be suprised if that is what i'd need...

 

[growler]

So the thought is that for this work because i'd need roofers and electricains that I would have to be a fully licenced contractor?

If you intend to do any hands on type of stuff then yes you would need to be a contractor.

For a part time thing there are probably ways around this. Find yourself a general contractor to work with. You design and sell and let them do the actual installation.

 

[mcclary's electrical]

So the thought is that for this work because i'd need roofers and electricains that I would have to be a fully licenced contractor?

Seems like that may be overdoing it but I wouldn't be suprised if that is what i'd need...

There are two people.

One has money, one has a service.

Somebody's got to write a contract. Are you licensed to write that contract?

 

[DownRiverGUy]

And this is why this forum is awesome

That makes perfect sense guys.

So get a GC licence which will allow me to writeup the contract and sub contract out trade work as required.

Looks like I have some reading todo on how exactly to get licenced

 

[rodneee]

you are not nuts

you are not nuts

from the questions you are asking i can tell you are not nuts, you just seem a little scared....you are talking a part time weekend venture......this forum will rip you if you follow my advice but,....all this talk of insurance, permits, contracts, license, etc is way overkill for you at this stage....you will not be the first guy operating out of his house from the seat of his pants....so what if they call you a "hack".....dont overthink it, just go do it.....there are tons of who make it in ventures like yours, yet they only talk about the guys that fail...good luck...

 

[DownRiverGUy]

I agree Rodneee I'd be looking to see how the market is and later on this may become something more than just part-time. For the first builds which would be my home (close to getting a nice bit of land myself) and a few family members odds are I won't have a full GC license etc.

But for now it is good to know all of the requirements if/when I jump into this fulltime.

Even with the first few systems the work will be far from hack. I've seen what hack work looks like a few years down the line on PV systems and it is NOT pretty. So if someone chooses to name call at that point they can... but I know that any system i design/build will be working for 20+ years

I appreciate everyone?s perspectives on this issue!

 

[wireguru]

from the questions you are asking i can tell you are not nuts, you just seem a little scared....you are talking a part time weekend venture......this forum will rip you if you follow my advice but,....all this talk of insurance, permits, contracts, license, etc is way overkill for you at this stage....you will not be the first guy operating out of his house from the seat of his pants....so what if they call you a "hack".....dont overthink it, just go do it.....there are tons of who make it in ventures like yours, yet they only talk about the guys that fail...good luck...

yeah thats good advice.....get yourself arrested for contracting without a license.... :roll:

 

[satcom]

from the questions you are asking i can tell you are not nuts, you just seem a little scared....you are talking a part time weekend venture......this forum will rip you if you follow my advice but,....all this talk of insurance, permits, contracts, license, etc is way overkill for you at this stage....you will not be the first guy operating out of his house from the seat of his pants....so what if they call you a "hack".....dont overthink it, just go do it.....there are tons of who make it in ventures like yours, yet they only talk about the guys that fail...good luck...

Electrical contracting, will not usually produce enough income, to pay you expenses on a part time basis, we have plenty of guys in my area without a license selling PV systems and living large, they go into the part of the PV business, that makes the biggest piece of pie, and that is selling the installation, not installing it, sell the systems and you will be spending your weekends at your beach house, install the installation any you will renting the beach house, for the week, if your lucky.

 

[DownRiverGUy]

What do you mean by "selling the systems" exactly?

As in the overall design and equipment and providing it to contractors to install?

 

[mcclary's electrical]

I agree Rodneee I'd be looking to see how the market is and later on this may become something more than just part-time. For the first builds which would be my home (close to getting a nice bit of land myself) and a few family members odds are I won't have a full GC license etc.

But for now it is good to know all of the requirements if/when I jump into this fulltime.

Even with the first few systems the work will be far from hack. I've seen what hack work looks like a few years down the line on PV systems and it is NOT pretty. So if someone chooses to name call at that point they can... but I know that any system i design/build will be working for 20+ years

I appreciate everyone?s perspectives on this issue!

My impression of you,,,I think you'll do fine. If you start out part time, that's an added bonus, as it will not be your only income like it will one day. But, be careful doing that, every hour you give somebody else, at another job, could have been time spent on your company. Only work for someone else if you need to.

 

[rodneee]

yeah thats good advice.....get yourself arrested for contracting without a license.... :roll:

i am sorry you work and or live in an area where that could happen

 

[DownRiverGUy]

Ok folks let?s stay on topic here :roll:

Let's be honest... we've all seen or god forbid worked with a contractor that really SHOULD be in prison for the stuff they pull.

I'm going to call around to some local ECs in the area and see if they'd team up with me on this....

I sell the system to a client, design it... they get the work to install.

Any thoughts? Have any of you done this sort of arrangement before?

 

[petersonra]

I think at this stage I would be inclined to try and work out a partnership with someone who can actually take care of the work and the business end. You could operate as a free lance salesman/designer for him and get a cut. Maybe you could even work for him doing some of the work.

I would not worry a lot about insurance other than liability coverage and for what you are doing its not real expensive to get a $1,000,000 policy. A friend of mine got one recently for his brand new tree trimming business. I think it was like $600 a year. Cheap if he drops a tree on someone's garage.

 

[satcom]

What do you mean by "selling the systems" exactly?

As in the overall design and equipment and providing it to contractors to install?

The guys pushing PV installations in this area, are salesman not installers, they get subs to do the work they just run the ad's and close the sales, then they find subs to do the installations, they have the largest piece of the pie, the money is in sales not installations.

 

[jusme123]

how cost effective are pv systems, how long does it take to payoff the installation, and what are the annual maintenance cost? residential installations only, just curious.

 

[hardworkingstiff]

how cost effective are pv systems, how long does it take to payoff the installation, and what are the annual maintenance cost? residential installations only, just curious.

I'm curious too.