§1What this business is
A system has collector panels of 2 m × 1 m, a cold-water tank and insulated piping; a stainless steel tank stores hot water — 100, 200 or 250 litres a day for homes and 1,000–3,000 litres a day for hotels and hostels. The unit fabricates panels and tanks, assembles, tests and commissions them. The KVIC profile plans 85 systems a year.
Capacity: 85 solar water heaters a year at full capacity.
§2Is it right for you?
Who it is for
A fabricator or plumber who can also install and service systems.
Who it is not for
Someone who cannot offer installation and after-sales service.
Advantages
- Buyers save on electricity or fuel for years
- State programmes have offered subsidies to buyers (profile)
- Can be set up in rural areas too
- Installation and service bring extra income
Drawbacks
- Low volume (85 systems a year) and thin surplus
- Large factory-made brands compete
- Demand is seasonal (winter) and regional
- Copper and steel prices move
Skills you need
- Welding and brazing
- Pressure (hydro) testing
- Installation and plumbing
- Selling to homes, hotels and hostels
Why difficulty 3/5: Needs fabrication skill plus installation and service.
§3Market
Who buys
- Homes (100–250 litres a day)
- Hotels, hostels and hospitals (1,000–3,000 litres a day)
- Small industries needing hot water
How it sells
- Direct sale with installation
- Plumbing and hardware dealers
- Builders and architects
Good to know
- Projected sales at full capacity: ₹16.20 lakh a year (profile).
- Standards named in the profile: IS 11907:1986 and IS 7025:1973 (solar radiation).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Equipment set: welding machine, brazing machine, rolling machine, buffing machine, drilling machine, compressor, hydro-testing machine, furnace, grinders, engineering tools, bench grinder, lathe | 1 set | ₹4,26,000 |
From: KVIC Project Profile — Solar Water Heater (PMEGP)
- Copper, aluminium, MS sheet, pipes, glass fibre, GI sheets, thermostat, insulation₹8,62,000 a year at full capacity (profile)
- Labels and packing material₹10,000 a year (profile)
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- BIS / MNRE test certificates if you sell under subsidy or government programmes
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (KVIC model profile), MUDRA (₹8.63 L is within ₹20 lakh) and CGTMSE.
§7Money
How the investment is worked out: KVIC profile: work shed 1,050 sq ft ₹2,10,000, equipment ₹4,26,000 (welding, brazing, rolling, buffing and drilling machines, compressor, hydro-testing machine, furnace, grinders, engineering tools, bench grinder, lathe) = capital ₹6,36,000; working capital ₹2,26,840 → total ₹8,62,840. Land own.
Working capital: Working capital ₹2,26,840; raw material ₹8.62 L a year at full capacity.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Get an Import Export Code (IEC) from DGFT before exporting.
§9Risks — where people fail
- Leaks and warranty claims
- Subsidy rules changing
- Seasonal cash flow
- Competition from big brands
§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 water heater manufacturing 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 Water Heater Manufacturing?
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.