How to start a renewable energy business

With the ever-present threat of climate change and a decline in fossil fuels, the renewable energy sector is thriving.

Renewable energy covers a range of different power sources, including wind power, solar power, hydropower, and biomass power.

Homeowners are becoming more environmentally conscious, and more people than ever before are looking to make the switch to renewable energy to reduce their carbon footprint.

On the Checkatrade site alone, we saw an increase in search volume of 537% for renewable energy between March 2021 and March 2022*.

By 2025, gas boilers will be banned in all new homes, which means greater demand for solar thermal systems and air-source heat pumps. Starting a renewable energy business makes sense.

In this guide, we’ll be covering everything you need to know about starting a renewable energy business; from financial and legal tips to ways to make your company stand out and how to ensure future growth.

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Create a business plan for your renewable energy business

Starting up a business takes a lot of work and it should always begin with a well-thought-out business plan. It’ll outline your goals and how you plan to achieve them, help you to make informed decisions and make you focus on the important details, such as:

• What is your business?
• What does your business do?
• Who is your perfect customer?

Your business plan should also cover logistics

It’s perhaps one of the most important sections. Logistics covers the way you’ll manage and run your new company. You’ll need to outline:

• The area you’ll operate in (will you operate locally to begin with, for example)
• What your business’s services are (installation, maintenance, supplier, or everything)
• How you’ll source materials
• Whether you’ll hire employees or operate alone (for now)

Include a note about finances

How will you fund your new business? Will you cover start-up costs with savings, a loan, or a credit card?

If you need financial backing to get your new business started, you’ll need to present a business plan.

What will your pricing structure be? Calculate your overheads, look at the competition, and charge an amount that ensures you make a profit while remaining competitive.

Don’t forget marketing!

It’s really important to decide who your target customers will be (homeowners, businesses, or government contracts). This will allow you to focus your marketing strategy on attracting the right customers for your business.

Check out our guide on how to write a business plan which includes a free business plan template for you to use. Simply enter your email below to get your copy:

Training and qualifications

If you’re already working in renewable energy, that’s great, you have a head start and a good knowledge of the industry. If not, you may be wondering how you become a renewable energy engineer.

There are a few routes to go down to be a renewable energy installer. You could go down the university route and get a degree in engineering. Or, you could complete City & Guilds Level 2 or 3 Diplomas (you may need to specialise in plumbing or electrics, or both). Alternatively, you could complete an apprenticeship. Take a look at some renewable energy training courses.

You’ll also need training and hands-on experience before you’re ready to work solo.

Before you start trading, it’s worth spending a lot of time researching current renewable energy options and technology. It’s a fast-paced industry and you need to be the expert, so if you have little knowledge, you need to learn about everything to do with renewable energy tech.

Other useful skills and attributes

Becoming a renewable energy engineer requires a little time and dedication. You can expect your work to be challenging but also varied and never dull. This is a great career choice for anyone looking to make positive changes in the world while making a competitive salary.

So, what skills does a renewable energy engineer need? Well, the following skills will come in handy:

• Problem-solving and analytical skills
• Mathematics and knowledge of science and engineering
• Attention to detail
• Good communication skills
• Being well organised
• Good interpersonal skills and customer service skills

Top tips on how to become your own boss

How to start your renewable energy business – step by step

There are a number of boxes you need to tick before you can launch your own renewable energy business. In this section, we’ll guide you through all you need to know.

Register your business

First of all, you’ll need to decide on a name for your new business.

Next, you’ll need to legally register your business with HMRC and make sure you understand your liabilities around tax and national insurance contributions.

Finally, decide on a company structure. Will you be a sole trader or a limited company?

Take the time to research the different regulations and taxes that apply to each business structure so you can settle on the arrangement that works best for you. If you’re unsure or need some guidance, contact a professional accountant.

How to find an accountant that’s right for your business

Licences, insurance and legal

You’ll need to have the right licences to operate legally, plus insurance to protect your business in case of an accident.

Professional indemnity insurance will protect you in the event a customer brings a claim against you for alleged negligence.

Public liability insurance (PLI) is highly recommended to cover your liabilities toward your customers, members of the public, and third-party property. All Checkatrade members are required to have PLI to become a member.

And employers’ liability insurance is a legal obligation if you employ anyone else as part of your business.

Checkatrade members get an exclusive discount with insurance provider, Covéa.

Finances

Managing your cash flow, understanding your tax liabilities, and keeping your books in good order is crucial to running a successful business. We have three articles to help you do this:

• 4 simple tips for successful cash flow management
• Understanding your tax liabilities
• Bookkeeping for small businesses

It may not be the most exciting part of your role as ‘the boss’, but poor cash flow management is one of the key reasons for new businesses failing, so it’s well worth spending some time here.

Due to the sector you’ll be working in, it’s worth checking if there are any government grants that could help your business too.

Marketing your renewable energy business

In order to give your new business the best chance of success, you need to think about how you’ll market your services.

One option is to pay for print advertising. This can include advertising in a local magazine, or newspaper, or sending out direct mail.

Checkatrade members have the opportunity to feature in our leading trade directory, which is delivered to homeowners around the country.

It’s also important to build an online presence for your new business, by creating social media profiles for your business, for example. This is a great way to showcase the quality work you offer and share testimonials from satisfied customers.

Save money and time marketing your business

Marketing will either cost you in time or money (or both!), so it’s crucial you decide on the most effective way to market your new business, considering your budget and the time you have available.

To give your business the best start, join Checkatrade. If your target audience is primarily homeowners, then you’ll want your business on Checkatrade. That’s where homeowners go to find tradespeople they can trust, and not being listed means you could miss out on potential work.

With our digital marketing strategy and strong online presence, becoming a Checkatrade member makes it easier for customers to find you.

You not only get a business profile on the UK’s leading trade directory, but you’ll also receive a search listing in Google, just as a website would.

As a Checkatrade member, you can display customer reviews, testimonials, and examples of your work on your profile page. You can also manage customer enquiries on the go, directly from the Checkatrade app, keeping everything in one handy place.

And with the Checkatrade tick by your name, it makes your marketing just that little bit easier, as 8/10 people would choose a trade endorsed by Checkatrade, compared to one which isn’t**.

We’ll also help you with free marketing materials and don’t forget, our members get exclusive discounts on business essentials, including workwear, tools, equipment, insurance, van leasing, fuel, and more.

Check out this post for further advice on setting up your business.

Quick action: Sign up for our ‘Become the boss’ series

You could get your renewable energy business started right away with the help of our ‘Become the Boss’ series.

You’ll receive a series of 8 emails containing actionable tips and top advice from fellow tradespeople who were once in your position. And at the end of it, you could be the founder of your new business.

To get trade business insider secrets sent to your pocket, enter your email address in the form below so we can help you to get started:

Useful checklist for starting a renewable energy business

• Starting a renewable energy business is a great option for anyone looking to take control of their career in a booming industry
• Creating an in-depth business plan will help you to achieve your company goals
• Along with job satisfaction, you can take pride in working to combat climate change
• It may be worth specialising in one area of renewable energy to help your company to stand out
• You’ll need to use problem-solving, communication and mathematical skills

How to grow your renewable energy business

Once up and running, you’ll probably be keen to know how to grow your renewable energy business.

But before you launch in and recruit additional engineers or apprentices, or invest in new technology and equipment, it’s recommended you do a bit of planning and strategising first.

With pen to paper, you’ll have a much clearer picture of how your business can grow in a structured way.

In this section, we’ll guide you through the process of identifying, setting, and achieving realistic targets to scale up and take your business forward.

What is business growth?

Business growth can take place in many different ways, including generating more revenue, developing a wider customer base, and expanding your service offering.

However, growth isn’t just about ‘increased sales’. It’s also about maintaining or improving profitability, through greater efficiencies and minimising costs, for example.

Before you progress to the ‘growth’ stage, it’s important to think about what growth means for your business:

• What does ‘growth’ look like?
• How will you achieve that growth?
• How will you gauge success?

What growth targets should you set for your business?

As growth can be achieved in a number of different ways, it’s important to think about what growth targets would be appropriate for your business. Some examples of growth targets include:

1. Getting more work
2. Increased revenue
3. Developing a bigger team
4. Expanding your services

How will you achieve your growth targets?

The next stage is to plan how you’ll achieve the growth targets you’ve set for your business. 

We have a FREE business development strategy template to help you do this, and a really useful article to explain what information to include:

How to create a business development strategy – Free template included

Want to know the type of things you can do to achieve your growth targets? We’ve outlined a selection of ideas for you to consider, below.

1. Growth target: want more work?

If you want more work, you need to attract more customers. But how do you do that?

Within your original business plan, you would’ve had a marketing strategy. Take some time to review this: have you implemented everything you set out to do, what worked, what didn’t, and what new ways can you think of to promote your business?

Some marketing tactics you may wish to consider include:

Traditional marketing

• Print marketing (e.g. an advert in a local magazine)
• Sponsorship (e.g. a local sports team or community event)
• Company signage (e.g. on your work vehicle)
• Networking (e.g. building relationships with other trades)
• Word-of-mouth marketing (maybe launch a referral scheme)

Digital marketing

• Build a company website
• Add new content to your company social media profiles
• Join an online trade directory
• Set up a Google Business profile
• Ask for customer reviews

Check out our FREE marketing planning guide and checklist to help create a clear list of marketing tactics and responsibilities.

You need a marketing plan now more than ever – Free marketing planning guide included

2. Growth target: want increased revenue?

One popular growth target is to generate more sales to increase your company’s revenue. There are a number of strategies you can implement to work towards this.

Our guides, below, will help to sharpen your sales toolkit and win more business!

• How to increase your close rate
• How to win new business
• How to upsell/cross-sell to existing customers
• Tips to increase profits

3. Growth target: want to develop a bigger team?

When you become an employer, you have certain responsibilities. But don’t let this put you off.

You’ll need to understand your legal responsibilities, for example, it’s a legal requirement to have employers’ liability insurance. You’ll also need to understand company payroll and learn about holiday pay. Check out our checklist for taking on employees.

We’ve also put together a guide on how to hire employees – from where to advertise for staff through to interview questions to ask.

It’s a big responsibility taking on workers. Read these articles to help you make the right hire at the right time:

• How to tell when’s a good time to hire employees
• Learn about how to make that first hire
• Who to hire? Employees, contractors, or an apprentice?

When you find good workers, you’ll also want to know how to keep them! Read about that here: How to retain an amazing team.

4. Growth target: want to expand your service offering?

The renewable energy sector is broad, and there are a number of ways you can grow your business by expanding the services you offer.

• One strategy could be to widen the geographical locations you cover
• Another could be to offer complementary services, for example, when you do an install, let your customers know you can also do service and ongoing maintenance
• Perhaps you’ve identified a specific niche you want to explore?

In order to pursue these strategies, you may need to identify the training and development needs of you/your team or look at how your existing skills could transfer to another service. Perhaps there are accreditations or certifications you could aim for too.

Remember, whatever growth targets you set, they must be S.M.A.R.T

• Specific – what does the task involve?
• Measurable – how will you quantify success?
• Achievable – is this attainable given the resources, knowledge, and time available?
• Realistic – is the target realistic to the confines of your job and your existing responsibilities?
• Time-bound – when should the target be achieved by?

How to tell if you’ve reached your targets?

The simplest way to know if you’ve achieved your targets is to measure them.

Draw up a chart that includes your target, your current figure, the figure you’re aiming for, and the % increase. Populate the chart at regular frequencies so you can monitor your progress.

Other key considerations for business growth

As your renewable energy business grows, there are some other factors to consider too:

• Funding – will you need to source additional funding to facilitate your growth plans?
• Business structure – is it still suitable to operate as a sole trader as your business expands? Speak with your accountant about becoming a limited company
• Company finances – an accountant can help you to stay tax efficient and compliant, and even help to source additional funding as you grow
• Business processes – review your processes to make sure they’re scalable. Consider what technology can help to make your business more efficient

Check out this FREE guide to ‘Growing your business the 2023 way’

How to grow your trade business in 2023 – Free guide included

Grow your renewable energy business with Checkatrade

Checkatrade is the UK’s leading trade directory. Here are just a few reasons to join the best trades with a Checkatrade membership:

Get more leads with a Checkatrade membership

Checkatrade is the best-known sign of quality in the trade industry and members receive more than 100,000 leads each week. 3 million homeowners used our trades last year. A third of all trade work comes through Checkatrade***.

A Checkatrade membership helps you to win more business

A Checkatrade membership gives you our seal of approval. 8 out of 10 people would choose a trade endorsed by Checkatrade compared to one that isn’t endorsed****. It’s the tick that homeowners trust.

Get exclusive access to trade deals

A Checkatrade membership is more than just a directory listing. Our exclusive discounts on business essentials will help you to keep your profit margins sharp. Checkatrade members save on average £470 per year each***** on everything from tools, equipment, van leasing, insurance, workwear, and more.

FAQs

What types of renewable energy can you work with?

The term “renewable energy” covers a range of different power sources, and it may help to pick a specific type to specialise in. You can choose from options including:

• Wind power
• Solar power
• Hydropower
• Biomass power

What are the career options with the renewable energy sector?

Starting a career in renewable energy means you can choose to specialise in a range of different areas. Often the best way of standing out above your competitors is to pick a specific area to focus on and become an expert. This way you’ll be offering a unique service which means you can charge more for your work. Some of your renewable energy career options include:

• Selling renewable energy solutions
• Installing renewable energy solutions
• Advising others on renewable energy solutions
• Auditing current power systems and recommending changes
• Maintaining renewable energy solutions

Do I need to apply for a HETAS certificate?

The heating equipment testing and approvals scheme (HETAS) is designed to ensure biomass and other solid fuels are properly disposed of. This needs to be done safely and in an environmentally friendly way. If you do plan to work with these fuels, having a HETAS certificate will mean you can self-certificate your work meaning you don’t need to apply for Building Notice. For more information, check out our HETAS certificate guide.

*Comparing average search data for trade categories on checkatrade.com in the month of March 2021 and 2022.

**Claims are sourced from a survey conducted by Deep Blue Thinking on a nationally representative UK sample in November 2021.

***Checkatrade brand tracking survey April 2021

****Claims are sourced from a survey conducted by Deep Blue Thinking on a nationally representative UK sample in November 2021.

*****Year runs from April 21’ to March 22’. Saving calculation based on average spend across 12,505 members in 2020/2021/2022. Discounts differ depending on the partner. Products range from low value items to high value items. Some exclusions will apply on products.