§1What this business is
Incoming parts are tested, components are soldered on circuit boards, and the board, battery, lamp, switches and solar panel are fitted into the cabinet, wired and tested. The report makes 50 lanterns a day (15,000 a year); each uses about ₹1,700 of parts, including a 10 Wp solar module and a 12 V/7 Ah battery. Lanterns serve homes with poor power supply, farms, shops and emergency use.
Capacity: 50 lanterns a day, 15,000 a year; 60% in year 1.
§2Is it right for you?
Who it is for
An electronics technician with links to solar dealers, NGOs or government lighting programmes.
Who it is not for
Someone without electronics testing skills.
Advantages
- Low machinery cost (₹3.50 L) — mostly testing tools
- Useful wherever power is unreliable
- Can supply government and NGO lighting programmes
- Same skills extend to solar home lights and street lights
Drawbacks
- Large working capital tied up in parts
- Cheap imported lanterns compete hard
- Fast-changing technology (the report still mentions CFL lamps)
- Battery quality decides returns and reputation
Skills you need
- Soldering and circuit-board assembly
- Battery and solar-panel testing
- Buying parts at good prices
- Dealer and programme sales
Why difficulty 3/5: Assembly is simple, but working capital and quality control are heavy.
§3Market
Who buys
- Homes in villages with poor power supply
- Farmers, shops and hawkers
- Government, NGO and disaster-relief programmes
How it sells
- Solar and electrical dealers
- Government and NGO tenders
- Online marketplaces
Good to know
- Parts cost ₹1,700 per lantern in the report; raw material is ₹153 L of ₹188.10 L sales in year 1.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Drilling machine | 1 | ₹13,000 |
| Portable grinder | 1 | ₹10,000 |
| Power supply, 0–30 V, 3 A | 2 | ₹50,000 (₹25,000 each) |
| High-voltage breakdown tester | 1 | ₹40,000 |
| Auto transformer | 1 | ₹10,000 |
| Insulation tester | 1 | ₹10,000 |
| Testing set-up (voltmeter, ammeter, wattmeter, etc.) | 1 | ₹63,000 |
| Digital multimeter | 2 | ₹18,000 (₹9,000 each) |
| Analogue multimeter | 3 | ₹6,000 (₹2,000 each) |
| Servo voltage stabiliser | 1 | ₹30,000 |
| Electrification and installation (10%) | LS | ₹25,000 |
| Temperature-controlled soldering stations, tools, jigs, fixtures, electronic screwdrivers | LS | ₹75,000 (₹35,000 + ₹40,000) |
From: PMEGP sample project report — Solar Lantern (prepared by Udyami/Samadhan)
- Solar PV module, 12 V / 10 Wp₹620 per lantern (report)
- Battery, 12 V / 7 Ah₹600 per lantern
- High-quality LEDs (5)₹110 per lantern (₹22 each)
- Plastic cabinet₹150 per lantern
- PCB, semiconductors, resistors, capacitors, transistors₹140 per lantern
- Switch, input connector, fuse and holder, cables₹80 per lantern (₹20 each)
From: PMEGP sample project report — Solar Lantern (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Amini Solar systems Pvt. Ltd · Thiruvananthapuram →Ammini Energy Systems Pvt Ltd · Thiruvananthapuram →Aplab Linaited · Kochi →B. M. V. Circuits System · Noida →bharat Heavy Electricals Ltd · Bengaluru →Buljin ELMEC Pvt. Ltd · Chennai →Central Electronics Ltd · Sahibadabad →EMMVEE SOLAR · Bengaluru →Kerala sales corporation · Thrissur →Lintek Energy Systems · Delhi →Max technology (India) New · Kochi →Meco Instruments Private Limited · Mumbai →
§5Licences & registration
- Udyam registration
- GST registration
- BIS registration for any parts or products notified under the Compulsory Registration Scheme (check batteries and LED items)
- E-waste (EPR) registration for batteries and electronics, where it applies
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report is a PMEGP sample), CGTMSE, Stand-Up India for SC/ST or women founders. Above MUDRA's ₹20 lakh limit.
§7Money
How the investment is worked out: Samadhan report cost table: building & civil work (1,200 sq ft) ₹2.25 L, plant & machinery ₹3.50 L, furniture and computers ₹1.01 L, pre-operative ₹0.50 L, working capital ₹14.19 L = ₹21.45 L (term loan ₹6.53 L, working capital ₹12.77 L, own money ₹2.15 L). The cover page prints ₹25 L, which does not match its own table.
Working capital: Working capital ₹14.19 L (bank ₹12.77 L) — most of the project cost, because parts (₹1,700 a lantern) must be stocked.
Year not printed on the report — check current machinery and material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: DGFT (IEC)
- Get an Import Export Code (IEC) from DGFT before exporting.
§9Risks — where people fail
- Battery failures and warranty claims
- Price war with imports
- Component price swings
- Programme orders ending
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working solar lantern assembly unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Solar Lantern Assembly?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.