Setting up a solar business in Zim
GROWING demand for sustainable energy and power cuts have fuelled a boom in the solar power industry.
Demand for solar solutions has skyrocketed, making the sector a lucrative but competitive space.
The question is: What does it take to start a solar installation company in Zimbabwe and is the market really worth the investment?
Startup costs and requirements
Launching a solar installation company requires a mix of technical expertise, capital investment and compliance with industry regulations.
Here is a breakdown of the key costs:
Business registration and licensing — Registering a private limited company can cost between US$100 and US$300. Licensing with the Zimbabwe Energy Regulatory Authority (Zera) costs between US$500 and US$1 500, depending on the scope of work.
There is also need for VAT registration with the Zimbabwe Revenue Authority (if revenue exceeds threshold).
Equipment and stock — A solar company needs an initial inventory of panels, inverters, batteries and accessories.
Importing quality products from China or South Africa is standard, though local suppliers exist.
Initial stock investment depends on scale.
Small-scale (with a residential focus) should be between US$10 000 and US$20 000; mid-range (residential as well as small and medium enterprise market) should need between US$25 000 and US$50 000; and large-scale (corporate and industrial) should require in excess of US$100 000.
Operational costs — Office space (optional, home-based startups are common) can cost between US$300 and US$1 500 a month.
A vehicle for site visits and deliveries can set one back by between US$8 000 and US$25 000.
Tools (drills, ladders, meters, et cetera) can range between US$2 000 and US$5 000.
For marketing (branding, website and social media adverts) one can budget between US$1 000 and US$5 000.
Salaries for a small team (technicians, sales reps and administration) can range between US$2 500 and US$7 000 a month.
Training and certification — Hiring certified solar technicians is essential. The Renewable Energy Association of Zimbabwe and various training institutions offer certification programmes for installers.
Training costs range from US$500 to US$2 000 per technician.
High demand, fierce competition
Zimbabwe’s solar industry is booming but it is no gold rush.
The market is crowded, with local players and international firms competing for customers.
Still, opportunities exist.
From households to businesses, solar is no longer a luxury but a necessity.
The biggest challenge is capital — solar equipment is expensive and forex shortages make imports difficult.
Companies with direct supplier links or bulk-purchasing power have an edge.
Many potential customers cannot afford upfront installation costs.
Offering flexible payment plans or financing partnerships (for example, microloans) can attract more business.
A well-run solar installation business can break even within 12 to 24 months, depending on scale and strategy.
Those who differentiate — be it through superior service, financing options or targeting niche markets like solar-powered irrigation — stand the best chance of thriving.-sndamail
