Many solar energy start-ups complain of the inability to access funding even though many organizations, venture capital firms and angel investors are looking for projects to fund.
The problem is that many of these businesses have great ideas but lack structures and strategies to attract the funding they need. To finance your solar energy business, you must meet locally and internationally acceptable standards and be economically, environmentally and technically feasible.
The four elements to consider before you begin to source funds through any of the mentioned sources are as follows:
- Create a profit-assured model: Investors or financiers must be able to evaluate your business operations and potential easily. And it must have a high guarantee for good returns on investment. In addition to that, it must be an internationally acceptable model
- Formalize your operations: To access funding opportunities, business operations should follow a well-structured model. A formal system makes deliberate action to capture all costs and revenue and follow feasible processes. Investors should be able to see how income will be generated and managed.
- Comply with relevant regulations: Your business must comply with financial and industry rules to attract financiers. Such regulations include tax compliance, operational licenses, environmental approvals, and other sociocultural acceptance.
- International best practice: Your business must run professionally and follow International Best Practices.