With his energy company hitting new growth milestones this year, Ryan Leestma is convinced that solar is the future.
The owner of Adelaide Energy said last month that the company’s revenues had grown from $400,000 in 2021 to about $4 million now by the end of 2022 – an increase Leestma said underscored the growth of solar energy. Democratization is critical to the continued success of the industry.
Leestma has been advocating the benefits of solar energy in recent years, and he has seen the benefits through the company’s own growth.
“To the best of our knowledge, we are the largest commercial solar contractor in the western half of Michigan and northern Indiana markets,” Leestma said, referring to Adelaide Energy’s current solar project across South Bend, Indiana, through to Texas. Raffles City.
Leestma launched Adelaide Energy in 2020 after learning more about the growing adoption and investment in solar in other parts of the US, such as California. He wanted to find a contractor in Michigan to help install his real estate through Leestma Management, another company he founded and owns.
Leestma said he spent about a year researching solar arrays and installations without success in finding a suitable contractor. At the time he ended up being responsible for installing solar panels on all of his commercial buildings.
According to Leestma, the result was a “huge success”.
“We started saving about $250,000 a year on electricity, and my property value increased by about $2.5 million,” he said. “I feel very strongly that I have found a sweet spot where I can maximize the value and profitability of my property.”
Leestma started spreading awareness to his colleagues in the industry and Adelaide took off. As well as maintaining facilities on its own property in Leestma, Adelaide Energy now works with clients in the RV industry, industrial markets, storage buildings, rental properties and mixed manufacturing companies.
Adelaide Energy also has an operating office in Indiana. The entire team is made up of about 25 people, though Leestma expects that number to grow as the company is hiring for several new positions.
He said it was rewarding to witness the benefits his customers were able to experience with solar power.
“It’s very comforting to show owners how they can increase profitability, increase property value and differentiate themselves from other properties on the market,” he said. “On average, if tenants know that the property has renewable energy, They’re willing to pay an extra $1 per square foot. So, if you have a million square feet, you’re making an extra million dollars a year. It’s not a bad deal.”
Leestma also finds Adelaide Energy’s growth encouraging, especially since he has experienced a lack of education in Michigan’s solar market.
“There’s an opportunity here — there’s no education in the market on what solar is,” he said. “I mean, I hear the question a lot, ‘Well, are we too far north? I thought you could only do solar like you’re in California or Arizona. And that’s not the case.”
To be sure, Michigan has historically been known for having more cloud cover than sunshine. Last year, the Farmer’s Almanac ranked Michigan among the 10 cloudiest states with only 65 to 75 clear days a year.
However, Michigan currently ranks No. 1. According to EcoWatch, the country ranks 26th in the country in terms of solar conversion. Residential solar conversions in the state have grown in popularity over the past decade and are expected to continue growing.
Looking ahead, Leestma said he expected Adelaide Energy’s revenue to reach $10 million within two years, or next year.
With so much economic uncertainty, Leestma highlighted solar’s low risk factor.
“Ironically, I think solar power actually becomes a better investment idea in a recession than in a boom,” Leestma said. “It’s a great hedge to isolate the value of operations, and it’s a great hedge to create cash flow and wealth … that’s how you ensure continued prosperity in all economic conditions.”
If last year has shown him anything, it’s that solar energy does have the potential to continue growing in Michigan.
“In terms of innovation, it’s a bit like migrating from typewriters to word processors,” Leestma said. “Why would you do that? It saves a lot of money, right? Same thing with solar. Why would you migrate from so many different technologies that exist? That’s really all there is to it – it’s actually an innovative technology related to energy.” Ideas, just getting a foothold here.”
“It’s a real pleasure to bring another innovative idea to the market,” he added.