Solar Installation Company

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Executive Summary

High Desert Solar designs, sells and installs rooftop solar systems for homes and small businesses in Reno, Nevada and the surrounding county. It works with licensed electricians, a certified design lead and local utility programs to deliver complete systems from proposal through permits, installation and inspection. Revenue comes from system installations and from service and maintenance work. Year 1 revenue is projected at about $770,000, growing to about $1.9 million by Year 3. Startup costs are about $221,000.

Company Description

High Desert Solar is an LLC owned by Elena Brooks, who has seven years of experience in solar sales and project management. Nevada requires a contractor license with the right solar classification before the company can sell or install systems, and installers hold NABCEP or equivalent training. The company leases a small office and warehouse in Reno. Services: residential and small commercial rooftop solar, battery storage, system monitoring, service calls and panel cleaning and maintenance.

How we make money. The plan has these income lines: residential solar installations at about $24,000 each, about 30 in Year 1; service, monitoring and cleaning at about $350 each, about 143 in Year 1. Pricing is set so each line covers its direct cost and a share of overhead.

Unit economics. In Year 1 direct costs are about $482,160, a gross margin of about 37% of sales. Pay and overhead take most of what is left, so the plan first shows a profit in Year 2. Prices and volumes are set from the assumptions in the appendix and should be replaced with your own quotes.

Problem & Opportunity

Homeowners want lower power bills but face confusing quotes, fast-changing incentives and installers that disappear after the sale. Many do not know whether their roof, shade and usage make solar worthwhile. They want a local company that explains the numbers honestly, handles the permits and utility paperwork and answers the phone after the system is on.

Products & Services

Straightforward proposals that show expected production, cost, incentives and payback range with the assumptions stated. The company designs each system for the roof, handles permits and utility interconnection, installs with its own trained crews and monitors performance after installation. Customers get a local service line, a labor warranty and an annual check-in.

Market Analysis

Northern Nevada has strong sun, rising power rates and a growing number of homes and small commercial buildings. Demand for solar depends on utility rates, incentives and financing, so the plan stays flexible. Targets are homeowners with good roofs, small businesses with daytime power use and homes adding batteries for outage protection.

Who we serve first. Homeowners with good roofs, small businesses with daytime power use and homes adding battery backup.

Competitive Landscape

National solar companies sell aggressively with door-to-door sales and often subcontract installs. Several local installers compete on price. High Desert Solar competes on honest proposals, in-house crews, local service and a clear explanation of incentives. We do not promise savings we cannot document and do not push financing the customer does not understand.

Our strengths and weak points. Strengths: Owner with seven years of solar sales and project management experience; In-house crews and honest proposals, which are rare among fast-growing national sellers. Weak points we plan for: Licensing and training must be in place before the first sale; Large upfront inventory and a few big jobs can strain cash.

Marketing & Sales Strategy

Referrals from neighbors of completed systems, partnerships with roofers and electricians, home shows and community events, a website with an honest savings estimator and a Google Business Profile with reviews. Each customer is asked for a review and a yard sign after inspection. The first goal is 40 installs in Year 1.

The first 90 days. Days 1 to 30: confirm the contractor license and insurance, rent the warehouse and hire the project manager. Days 31 to 60: hire two installers, set up suppliers and design software and meet roofers and electricians. Days 61 to 90: send the first proposals, close the first installs and ask each customer for a review.

Operations Plan

Every project follows set steps: site visit and roof measurement, design and proposal, signed agreement, permit and utility application, material order, installation by a licensed crew, inspection and permission to operate. The company uses design software, a project tracker and a weekly schedule meeting. Crews follow written fall protection and electrical safety rules. After installation, monitoring alerts the team to underperformance and service calls are scheduled within a set time.

Key resources and partners. Resources: A contractor license, trained installers, design software, a warehouse and supplier accounts. Partners: Panel and inverter suppliers, roofers, the local utility, the city permit office and lenders offering solar loans.

What we measure. Installs per month, average system size, gross margin per install, days from signed contract to permission to operate and cash in the bank.

Risks and how we plan for them:
- Incentives and utility rates change and can cut demand overnight. We confirm current rules before each proposal and tell customers what is guaranteed and what is not.
- Licensing and training must be in place before any sale. We do not sell until the contractor license and electrical credentials are active.
- Large jobs strain cash. We take staged payments and order materials for signed jobs only.
- Roof and electrical safety. Crews use fall protection, follow lockout rules and complete safety training.
- Reputation risk if a system underperforms. We design conservatively, monitor every system and fix problems under warranty.

Rules and incentives. Contractor licensing, electrical permits, utility interconnection and tax incentives change over time, so the company confirms each requirement with the state contractor board, the city and the utility before every proposal. Customers are told which incentives are current and that tax treatment depends on their situation. Warranty. The company gives a written labor warranty and passes along manufacturer warranties on panels, inverters and batteries.

Management & Organization

Elena Brooks, Owner and Sales Lead, runs sales, proposals and customer service. A project manager and licensed electrician is hired before launch, and two installers are added early in Year 1. A NABCEP-certified designer is contracted at first and hired in Year 2. A bookkeeper handles reconciliation and taxes, and an attorney reviews contracts and financing disclosures.

Hiring plan. Elena leads sales. A project manager and licensed electrician is hired before launch, two installers early in Year 1 and a designer in Year 2. More installers are added for each new crew.

Outside help. We rely on an outside bookkeeper for monthly reconciliation and tax filings, an attorney for contracts and licensing questions and an insurance agent who reviews our coverage every year. We meet with these advisors at least twice a year and keep notes of what they recommend.

Milestones Narrative

Year 1: obtain the contractor license, hire the licensed electrician and first crew, complete about 40 installations, revenue about $770,000. Year 2: add a second crew and a full-time designer, revenue about $1,462,800. Year 3: add battery storage and small commercial projects as a main line, revenue about $1,940,000.

What the plan's numbers say. Year 1: sales about $770,000, loss about $95,200; Year 2: sales about $1.5 million, profit about $41,000; Year 3: sales about $1.9 million, profit about $48,400; Year 4: sales about $2.3 million, profit about $106,800; Year 5: sales about $2.6 million, profit about $60,000. The lowest year-end cash is about $58,000.

How we will keep score. Every month we compare real sales to the plan, check the cash in the bank, review the direct cost of each job or product, and look at what customers say. If sales are behind plan for two months in a row, we slow spending and delay hiring until the numbers catch up.

Funding Request

How much we need and how we will use it. Total needed: $432,500. This number comes from the Funding Need Calculator in this plan. It adds up:
- Startup costs of $221,000, listed item by item in the Startup Costs section (the largest are Starting inventory of panels, inverters and racking $60,000; Working capital reserve $60,000; Work truck and trailer $32,000).
- A cash cushion of about $211,500. That is the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital."
- Together that comes to about $432,500 (rounded up to the nearest $500), which is the total we are planning for.
Where the money comes from:
- Owner money: $60,000.
- Equipment financing on truck and tools: $45,000.
- SBA 7(a) loan: $327,500.
Kind of funding we are looking for: Equipment financing on truck and tools: $45,000 at 9.0% interest over 5 years, about $934 a month; SBA 7(a) loan: $327,500 at 12.75% interest over 10 years, about $4,842 a month. A loan is money we pay back with interest, and the monthly payments are already included in our cash flow.
How we will pay it back. We expect sales of about $770,000 in Year 1, growing to about $2.6 million by Year 5. We expect a loss of about $95,200 in Year 1, a profit of about $41,000 in Year 2, a profit of about $48,400 in Year 3, a profit of about $106,800 in Year 4 and a profit of about $60,000 in Year 5. Year 1 is lower than a full year because licensing, hiring and the first permits take time before installs begin. The lowest year-end cash balance is about $58,000 (Year 3), so with this funding the business has money in the bank every year of the plan.
What we are offering the lender: the equipment we buy as collateral and a personal guarantee from the owner.
A smaller first step, if needed. If we cannot raise the full amount right away, we can start with a smaller inventory, subcontract installation crews and focus on residential systems until volume grows. Duplicate this plan and lower the inventory and vehicle costs to match.
What if sales are slower? We also tested a cautious case where sales come in 20 percent lower every year. In that case the plan shows a loss of about $162,100 in Year 1, a loss of about $86,200 in Year 3 and the lowest year-end cash is below zero, by about $443,000. Cash would run short in that case, so we would cut costs early, delay hiring and talk to the lender before it happens.
All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- LLC operating agreement.
- Nevada contractor license with solar classification.
- Insurance certificates and contractor bond.
- Installer certifications.
- Warehouse and office lease.
- Equipment financing agreement.
- Sample proposal, contract and warranty forms.
- Supplier agreements for panels and inverters.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Residential Solar Installations: about 30 units in Year 1 at about $24,000 each, costing about $15500.00 each to deliver.
- Service, Monitoring and Cleaning: about 143 units in Year 1 at about $350 each, costing about $120.00 each to deliver.
- Pay: owner / sales lead $56,000 a year (the same number all five years); project manager and licensed electrician $72,000 a year (people in Years 1 to 5: 1, 1, 2, 2, 3); solar installer $42,000 a year (people in Years 1 to 5: 2, 3, 5, 6, 7); designer $60,000 a year (people in Years 1 to 5: 0, 1, 1, 1, 2).
- Other yearly costs in Year 1: warehouse and office lease about $30,000, insurance (general liability, workers compensation) about $24,000, permits, licensing and software about $12,000, vehicle and fuel about $14,000, marketing and home shows about $24,000, accounting and admin about $10,000.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Plain words used in this plan:
- Interconnection: the utility approval to connect a solar system to the grid.
- NABCEP: a national certification for solar installers and designers.
- Net metering: a utility billing method that credits solar power sent to the grid.
- Inverter: equipment that converts panel power into household power.
- Payback: how long it takes savings to cover the system's cost.

Startup Costs