Renewable energy sources are here to stay as consumers become more aware of their daily impact on the environment. Helping the environment can also be good business. Starting a solar energy business could mean becoming a solar panel installer, a distributor of solar products or a provider of many other types of solar energy services and products. Choose your area of focus and establish your business properly to gain consumer confidence regarding your services.

Establish a Focused Niche

With so many areas in the solar energy arena, it is important to initially focus energies on a niche in which you excel. While you may expand later, don't overextend yourself. Look at the market and check out the competition. It may be that solar panel installation on homes is saturated but no one is focusing on business solar needs.

You may see a gap of service for solar hot water heaters or pool heaters. It could be that no one is selling solar products that consumers want such as solar shed lighting kits, solar phone chargers and hiking packs with solar charging.

Once you establish your niche, learn everything you can about product costs, installation, distribution and liability. Become an expert.

Register the Business

Establishing a business starts with registering it at the secretary of state website. Pay the registration fees and obtain your articles of incorporation or organization. With the articles, apply for a tax identification number from the IRS. This is a free but required item for any business to hire workers, open bank accounts and establish credit of any sort.

Obtain Business Insurance

Once the business is registered, call a commercial insurance agent to obtain the proper insurance policies. Review your business with the agent to make sure you get the right coverage and right policies. If you plan on serving local municipal organizations, commercial buildings or government entities, your minimum insurance requirement is often at least $1 million in general liability. You also need workers' compensation insurance and commercial auto policies if you plan on driving onto locations.

Obtain Required Licenses and Certifications

With new industries, it sometimes takes a while for oversight bodies to determine how to best regulate them. Solar installation is no different. With many states not requiring any licensing, the industry has fallen prey to poor quality and fly-by-night service. Check with your local contractors' board to determine if and what licensing is required.

Some states require either an electrical or plumbing license for installation, while a growing number are establishing a specific license process for solar energy installation. Even if you aren't required to be licensed, consumers have higher confidence in your ability to perform the job if you are.

Additionally, voluntary certifications exist. Both Green-e and the North American Board of Certified Energy Practitioners offer certification programs. These validate your business as one that cares enough to learn the latest technology and trends. Certification is based on experience, training and passing an exam.

Use a Business Plan to Obtain Financing

When applying for financing, lenders will want to see a solid business plan so that they know their risk in lending you money is more likely to pay off in the end. Every business plan should include the following: a mission statement, a detailed list of objectives, a market research analysis, a list of employee duties and responsibilities, a list of expenses, a price list with projected profit and a contingency plan in case of a natural disaster or a supplier pulling out at the last minute.

Marketing Your New Business

Many solar installation companies find success with wrapped vans and door-to-door sales. Make sure you adhere to local laws about times you can solicit and respect private property. If your company is not doing installation, partner with a company that is. This is a great way to utilize their marketing efforts and become a secondary resource for their clients.

For example, an installation company might not offer energy monitoring to ensure the system performs properly. If you do, provide an introductory discount for their clients.

Join your area chamber of commerce and local networking groups. Become active in the community, especially where people who care about the environment congregate. Farmers' markets and city cleanups are great ways to get involved and market to your target group.

Utilizing Internet Marketing and Social Media