8 Factors That Determine How Much Money Solar Panel Companies Make
Since 2008, hundreds of thousands of solar panels have popped up across the country as an increasing number of Americans choose to power their daily lives with the sun’s energy. Thanks in part to the Solar Energy Technologies Office's investments, the cost of going solar goes down every year. You may be considering the option of adding a solar energy system to your home’s roof or finding another way to harness the sun’s energy. While there’s no one-size-fits-all solar solution, here are some resources that can help you figure out what’s best for you. 
If you are wondering how do solar contractors make money, then you first have to understand the 8 factors that determine how much money a solar company can make.
The first one is investors and just like we have stated above, a solar company can make a profit off the excess revenue that the initial investment pulls in. So the solar company gives a fixed percentage to the investor and keeps the rest of the revenue.
Product and Service Mix
There is a wide variety of solar panels in the market and they range from 3 to 300 watts and the factory price and mark-up of each type of panel vary. So aside from services, the solar panel company can also sell solar products such as solar attic fans, solar PV, solar pumps, solar lights, and even solar thermal systems. This is another prominent way some solar companies in the US make money.
This is another way how solar panel contractors and companies make money. The tax credit the solar company gets back from the initial money that went into buying and setting up the solar panels is called a tax credit. This is put into place so that the government can encourage more people to convert to green energy.
People pay either by using checks or a credit card. If the client uses a credit card to pay for the purchase and installation of solar lights then they will have to pay an additional amount of 3 to 3.5% for that money to be transferred over to the solar company. This means that if a company is charging 30,000 dollars for a solar installation, you will have to pay an additional amount of 900 dollars when you pay with a credit card.
The demand for solar energy and the location of your site significantly affect how much your business makes. The weather of the state you are setting up your company in also has a lot of impact because if the customers see how "sunny" the city is, they are more likely to switch to solar energy, especially when compared to a city where it rains a lot.
Renewable energy is a fast-growing field and while a lot of people want to make the switch, they don't have the resources to fund it. So for a solar business to work, it has to be situated in an area where people can afford to make the switch.
This is a major factor that can influence how much a solar company can make. If there are more solar companies then the cost of installation will be lower because of competitive pricing. And if your company is already behind in the solar game, then you will have to lower prices even more to make room for your company in the industry.
Business Structure and Management
Obviously, the performance of the installation team has a major role in the success of the company. A solar company cannot flourish in the industry if they don't have dedicated and talented workers who strive to work hard. This is why if you are planning on starting a solar business, the first thing you must do is find licensed and trained solar technicians.