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

[DownRiverGUy]

Well i think I have a direction here folks tell me what you think...

I contacted a master electrician who also has his contractor license and he is interested in part-time work to start.

I also contacted two distributors and will be signed up to act as a dealer for them.

The plan I have is to sell people the systems, assist them in getting financing, buy the equipment, and have the contractor install it (will help with labor as well because he is a one man shop).

At this point i think the only thing i need is to form an LLC.

To answer your questions...

In my area I'm looking at 5-10yr payback on system costs.

At that point the utility is paying you for Renewable Energy Credits with an initial installation payback and per kWh for 20years.

Besides washing the panels off once and a while there isn't much that needs to be done with a grid tied system. Maybe checking the connections and verifying that all the panels are connected every few months.

Because of the program I'd be focusing on residential and small commercial.

 

[hardworkingstiff]

I would not proceed without the LLC and insurance. The more control and responsibility you accept the more money you will make. In NC (where I live) it would be illegal for you to write a contract that involved construction (even if you are subbing everything out) for more than $30,000.

In NC, a savvy homeowner that knew that could have you perform all the work and then refuse to pay you. The judge would back the homeowner and you'd be out the money and effort. Make sure you understand the contracting laws in your State.

If you have the knack to sell this stuff, then a GC license and good contacts with ECs and roofers should serve you well.

Good luck.

 

[ty]

Here's some input, as I own and operate a PV company as well as an Electrical Company:

Getting financing for residential customers is difficult. There are a very few Banks that I have found, but they want Excellent credit score, and still want a down payment from some customers. Commercial seems to be a little easier to find willing Banks.
So, mostly , as far as Residential, most customers end up financing the systems themselves.

So, a Target Base break down:
- How many homeowners in your area are interested in a PV installation.
- Of those, how many actually have enough roof or open land space to fit a system to meet at least 50% of their usage.
- Of those, how many have that space at an optimal (or at least qualifying) orientation.
- Of those, how many will qualify for financing. If they don't qualify for financing, how many have the funds to pay for the system.

So now, you have a percentage of target base.
Now, of that Target Base:
- How many other PV contractors are in your area.
- Of those, how many of them are Licensed Electrical Contractors who do all of the work, using no sub contractors.
- And then of those, how many of them will float the customer any rebates or other incentives.

These are just some things to concider. As you can see, the actual target base is typically not extremely large as far as Residential system goes. So, I suggest if you are going to do any advertising, spend your money wisely. I don't do full page ads in a local newspaper that costs $1200 a week, but I would do a booth at a green expo for the same amount of money.

 

[satcom]

These are just some things to concider. As you can see, the actual target base is typically not extremely large as far as Residential system goes. So, I suggest if you are going to do any advertising, spend your money wisely. I don't do full page ads in a local newspaper that costs $1200 a week, but I would do a booth at a green expo for the same amount of money.

That is a good snap shot of the business, finding that target market, and out of that group find those who qualify, is key to making it work, and a good reason the guys that have the sales skills, are able to close deals, in the residential PV market.

 

[mcclary's electrical]

Here's some input, as I own and operate a PV company as well as an Electrical Company:

Getting financing for residential customers is difficult. There are a very few Banks that I have found, but they want Excellent credit score, and still want a down payment from some customers. Commercial seems to be a little easier to find willing Banks.
So, mostly , as far as Residential, most customers end up financing the systems themselves.

So, a Target Base break down:
- How many homeowners in your area are interested in a PV installation.
- Of those, how many actually have enough roof or open land space to fit a system to meet at least 50% of their usage.
- Of those, how many have that space at an optimal (or at least qualifying) orientation.
- Of those, how many will qualify for financing. If they don't qualify for financing, how many have the funds to pay for the system.

So now, you have a percentage of target base.
Now, of that Target Base:
- How many other PV contractors are in your area.
- Of those, how many of them are Licensed Electrical Contractors who do all of the work, using no sub contractors.
- And then of those, how many of them will float the customer any rebates or other incentives.

These are just some things to concider. As you can see, the actual target base is typically not extremely large as far as Residential system goes. So, I suggest if you are going to do any advertising, spend your money wisely. I don't do full page ads in a local newspaper that costs $1200 a week, but I would do a booth at a green expo for the same amount of money.

Very good info!

 

[petersonra]

how cost effective are pv systems,

They are never cost effective except in cases where putting in poles is cost prohibitive.

how long does it take to payoff the installation,

Forever, unless someone else is footing most of the bill (like us taxpayers).

and what are the annual maintenance cost? residential installations only, just curious.

Annual cost is close to nil for the arrays, short of physical damage (hail can damage them). It's not real clear to me what the service life of the inverters is but it appears from anecdotal accounts that a fair number of them fail within a few years and need replacement.

If batteries are incorporated into the system it becomes even more expensive and the payback period is never, again except for where it is cost prohibitive to put in poles.