How to Start a Renewable Energy Business in 2024?

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How to Start a Renewable Energy Business in 2024?

Burning fossil fuels, cutting down forests and farming livestock are influencing the climate and earth’s temperature at an alarming rate. This has escalated the greenhouse effect and caused global warming by adding enormous amounts of greenhouse gasses to those naturally-occurring in the atmosphere.

Global warming is a worldwide challenge. It is not just the responsibility of the government, but also the citizens to take initiatives to reduce the effects of global warming. This can be done by promoting renewable energy sources such as solar energy, wind energy and ocean energy. 

If you are an entrepreneur who is genuinely concerned about the environment, and is interested in learning about how to start a renewable energy business in 2024, this article will serve as a guide for you.

Why should you start a Renewable Energy Business?

As inhabitants of earth, it is our responsibility to ensure that our planet is safe, clean and green. Every individual must do their part to reduce the effects of global warming, which can range from planting a tree to opening a renewable energy business. 

Most major economies in the world have adopted renewable energy in one way or the other. According to a report by the International Energy Agency (IEA) (2022), renewable energy is anticipated to overtake coal to become the largest source of global electricity by early 2025. Therefore, given the rising demand of renewable energy in the world, starting a renewable energy business in 2024 can be a profitable business. 

The Government of India has been promoting renewable energy through various schemes and projects. Launched on 15th February, 2024, PM Surya Ghar Muft Bijli Yojana is aimed at providing free electricity to 1 crore households in India who choose to install rooftop solar electricity units. 

Section 80IA of the Income Tax Act provides tax benefits to businesses operating in specific sectors like power and distribution through solar and wind. Such businesses can claim 100% of their profits for up to 10 consecutive years.

If even the Government of India is in favor of renewable energy, nothing should stop you from starting your own renewable energy company. This way you will be helping the government to meet its goals, help nature and also be able to claim tax benefits.

What are some Renewable Energy Business Ideas?

It is clear that starting a renewable energy business can be an excellent decision. However, you certainly need some renewable energy business ideas, right? This is why we have mentioned a list of some inspiring business ideas that combine sustainability with profitability.

Solar Panel Installation Service Provider

Solar energy’s popularity is at an all-time high due to the decreased costs and technological advancements. You can start a business that specializes in the installation of solar panels for residential and commercial properties. A lot of property owners and entrepreneurs need assistance for the installation of solar panels for their houses and companies, respectively. You can charge fees for your installation services and make additional money through maintenance contracts. 

Wind Farm Development

Governments around the world are incentivizing the production of renewable energy and wind energy is viewed as one of most important renewable energy sources in the world. You can develop a wind farm that harnesses wind energy and sell it to utilities or directly to consumers. You can make profit by selling energy to the power grid and leasing wind turbines.

Green Energy Consulting Firm

Since more and more entities look forward to reducing their carbon footprint, there is a growing need for guidance of the experts. You can start a Green Energy Consulting Firm and offer your expertise to business entities and homeowners that want to transition to renewable energy sources. You can make profit by charging fees for consultation, project management for green energy conversions and energy audit services.

Solar Blogging

If you think you have good knowledge about the solar energy industry, you can start a business of writing blog posts related to solar energy. By creating useful and perhaps educational content for a target audience on the internet, you can make money via your blog. You can also opt for vlogging for solar energy. 

Biomass Fuel Production Company

The world is on the lookout for sustainable energy alternatives, and biofuel is one of the best options available. You can start a company that produces biomass fuel fuels such as bioethanol or biodiesel. Bioethanol is produced by fermentation, especially from carbohydrates made in starch crops or sugar in the form of alcohol, and biodiesel is derived from animal fats or vegetable oils. Biofuels can be used as alternatives to fossil fuels. You can make good profit by selling biomass fuels, byproducts, and through research collaborations on new biofuel technologies.

Residential Energy Storage Solutions

Due to the rise in the adoption of renewable energy, there is also a rise in the need for energy storage to manage supply and demand. You can start a company which provides energy storage systems to the residential homeowners so that they can store excess power from renewable sources. You can sell and install energy storage systems, charge for maintenance services and smart grid integration.

What Licenses & Documents are Needed For Renewable Energy Business?

Since there are different types of renewable energy sources, the licenses and documents needed for businesses related to them are also different. However, there are some standards licenses which are required by every renewable energy company in India:

• Company Registration
• Trademark Registration
• Articles of Association and Memorandum of Association
• MSME Registration
• Pollution No-Objection Certificate (NOC) from State Pollution Control Board/Central Pollution Control Board
• Permanent Account Number (PAN)
• CEIG Approval (Chief Electrical Inspector for the Government of the State) 
• Factory License
• GST Registration
• Fire No-Objection Certificate (NOC) 

What are the Advantages of Renewable Energy?

There are many advantages of renewable energy that make it a better alternative to fossil fuels.

Renewable Energy Resources have Inexhaustible Supply

One of the main advantages of using renewable energy sources is that they will never cease to exist. Sun, wind and water have been present in the universe since forever. But when we talk about non-renewable energy sources like coal and petrol, they’re finite and also a major concern for the environment. In addition to this, the non-renewable energy sources have been declining and thus, are becoming more expensive and require more extreme extraction methods with greater environmental impacts.

A Cleaner, Healthier Environment for Animals and Human Beings

Whenever the fossil fuels are burnt, they release airborne pollutants such as sulfur dioxide and nitrogen oxide. When these non-renewable resources are mined, they can cause water pollution and damage the habitats of many animals. The pollutants in the environment and risks to human health can be reduced by using renewable energy resources instead of fossil fuels. 

Green Energy Requires Less Maintenance

For most green energy resources, the maintenance and the costs related to maintenance are bare minimum. Generally, solar photovoltaic systems do not have moving parts and can last for 25 years or more with the requirement of minimal maintenance. Low operating costs and little maintenance are required when it comes to hydroelectric power plants. These plants can continue to operate for many years.

Affordable Source of Energy

Decades ago, renewable energy sources were expensive and people preferred to stick to fossil fuels. But now, in 2024, renewable energy resources have become more affordable due to technological advancements and government’s support in promoting green energy by offering subsidies. Businesses are implementing energy management strategies to optimize the usage of energy and lowering total energy costs as more renewable energy supplies are included into the power grids.

Job Creation

In recent years, both clean energy and fossil fuel industries have witnessed job growth. However, the clean energy industry has seen faster job growth. As a result, the green energy roles now account for more than half of the 67 million jobs in the global energy market (according to an International Energy Agency (IEA) report (2022)). Bhadla Solar Park, the largest solar park, was inaugurated in 2020 by PM Narendra Modi. This one project alone gave employment to over 25,000 people. 

Conclusion

The demand for renewable energy has never been higher. Due to global warming and the health problems caused by it, most major economies of the world have decided to shift to renewable energy resources. Starting a green energy business in India can be profitable for you due to the global and domestic demand of green energy resources. Apart from earning profit, you will also be doing good for the environment. Modi Sarkar has been offering subsidies and tax benefits for individuals and companies who are adopting clean & green energy. So, what are you waiting for? It’s time to start your own green energy business! For assistance, connect with Registrationwala Business Consultants!

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