Starting a solar installation business is mostly a sequencing problem. None of the individual steps is mysterious: get licensed, get accredited, get insured, find a supplier, win a customer, install properly, get paid. What trips new operators is doing them out of order, such as buying stock before the accreditation is in place, or signing a customer before the certificate arrangement is set up.
This is the order we would follow. It is general guidance. Licensing and accreditation rules vary by state and change, so confirm each step with the relevant authority. For ongoing operating advice once you are running, see solar installer business tips.
Step one: the people and the licences
Solar installation is electrical work, so the people doing it need the right electrical licence for your state or territory. Typically that means an electrician’s licence, and a contractor’s licence for the business itself. Requirements differ by state, so check with your state’s electrical regulator.
On top of that, the Clean Energy Council (CEC) accredits solar designers and installers. For small-scale solar systems, accreditation is what allows an installer to sign off work for which STCs are claimed. Your accredited person’s number appears on the paperwork, and the Clean Energy Regulator relies on it. Our answer on applying for solar accreditation explains the process, and the one on whether electricians need it deals with a common question.
If you plan to install batteries, there are further requirements, including battery-specific accreditation and standards. See the battery installer guide.
Step two: the business basics
- ABN and business structure. Sole trader, company or trust. An accountant can advise.
- GST registration. You will be above the threshold quickly, and certificate sales are generally taxable.
- Business bank account in the name on your ABN.
- Workers compensation and public liability insurance, and product and workmanship cover as your lender or customers require.
- Safety systems. Working at heights, electrical isolation, manual handling. Write procedures, even if short.
Step three: suppliers and products
Choose equipment on the approved lists. The CER’s Solar Panel Validation Initiative exists to catch claims for unapproved panels, and a system that cannot create STCs loses the discount. Build relationships with one or two distributors, ask about trade terms, warranty handling and returns, and test the support line before you need it.
Stay conservative on range at the start. Two panel options, two inverter options, and clear warranty stories for each, beat a catalogue you cannot explain.
Step four: how you will sell certificates
This step is the one new operators forget. A customer’s STC discount only exists if someone converts certificates to cash, and that someone is you, or your trader.
Your options:
- Sell through a trader. Assign certificates to a trader who checks, lodges, sells and pays. Simple, and the usual route.
- Register as an agent. Manage claims in the registry yourself. More control, more admin and more risk.
Pick on net dollars, days to payment, rate lock, fees and pre-checks. Our trader checklist, STC pricing explained and STC trading for new installers walk through the choice. Open the account before your first quote, so the assignment form and process are ready.
Step five: a quote you can live with
A new business is most exposed on pricing. Work out cost per job honestly: equipment, labour including your own time, vehicle, insurance, tools, admin and a warranty reserve.
Example for a 6.6 kW system:
| Item | Amount |
|---|---|
| Equipment | $2,900 |
| Labour (two people, one day plus prep) | $1,100 |
| Overheads allocated | $500 |
| Warranty reserve (about 3% of price) | $190 |
| Total cost | $4,690 |
| Margin target (25% of price) | $1,563 |
| Price before STC discount | $6,253 |
| STC value (45 at $38) | $1,710 |
| Price to customer | $4,543 |
Present the STC line separately, and use a conservative rate. The deeming period is five years for 2026 installs and four for 2027, so check which applies on the install date.
Step six: your first customers
Referrals and local reputation do most of the work for a small installer. Beyond that, local social media, partnerships with electricians and builders, and trade referrals from heat pump and air conditioning businesses. Avoid door-knocking and aggressive tactics, since they attract complaints and regulator attention.
Step seven: compliance from day one
Establish the routine before the first job. Photos to a fixed list, signed assignment form, accurate written statement, attendance on site. The CER’s 2026-27 priorities focus on true and correct written statements, and it can remove installers who give false ones. Our compliance checklist and photo guide are the templates to copy.
From the desk: Price your first ten jobs as though your trader will take its full payment time. If you can afford the cash gap, you are safe. If you cannot, choose a trader with faster settlement before you start. Many new businesses discover on job six that they cannot pay for the next batch of panels.
Cash flow in the first six months
Model it before you start. Suppose you plan eight jobs in month one and 15 in month two. Equipment alone for 15 jobs at $2,900 is $43,500. If the certificates ($1,710 each, $25,650 for 15) take 20 days to arrive, your cash need is far higher than if they arrive in 2 to 3 days. Decide how it will be funded: savings, supplier terms or a facility. Our answer on solar installer cash flow is a good companion.
Plan for the end of the discount
The scheme ends on 31 December 2030, and the discount shrinks each January. A new business should plan its revenue mix from the beginning. See what ends in 2030.
Mistakes that sink new operators
- Underpricing to win the first jobs. A loss-making job does not become profitable with volume. Know your floor price.
- Hiring before the pipeline exists. A second crew is a fixed cost. Add it when you have a month of booked work, not a month of hope.
- Skipping the admin day. One person, one fixed day a week, for invoices, claims and reconciliation. Without it the paperwork piles up and slows your payments.
- Treating accreditation as a one-time task. Accreditation requires ongoing professional development and has renewal dates. Put them in your calendar when you first receive them.
- Ignoring the customer after install. Monitoring set-up, a 30-day call and a clear warranty contact prevent most complaints from becoming reviews.
What to do next
- Check state licensing and CEC accreditation requirements and book anything with a long lead time first
- Open a certificate trading account before you quote your first job, via the start trading page
- Build your quote template with a separate STC line
- Read how it works and the resources hub for the claim path and checklists