Adelaide Energy experiences rapid growth in 2022

Ryan Leestma sees growing solar operations as a rewarding, low-risk investment.
Adelaide Energy experiences rapid growth in 2022
Adelaide Energy continues to secure solar contracts in West Michigan and northern Indiana with its growing team. <strong> Courtesy Adelaide Energy </strong>

As his energy company reached new growth milestones this year, Ryan Leestma firmly believes solar is the future.

The owner of Adelaide Energy last month said the business has grown from $400,000 in revenue in 2021 to about $4 million now at the end of 2022 — a gain that Leestma said underscores how the democratization of solar energy is crucial for the industry’s continued success.

Leestma, who has spent recent years advocating for the benefits of solar energy, already has seen the benefits through his company’s own growth.

“As far as we can tell, we’re the largest commercial solar contractor in that band of the western half of the state of Michigan and the northern Indiana market,” Leestma said, referring to Adelaide Energy’s solar projects that currently span from South Bend, Indiana, up to Traverse City.

Leestma launched Adelaide Energy in 2020 after learning more about the growing popularity and investments in solar energy in other parts of the U.S. such as California. He wanted to find a contractor in Michigan to help with installations on his real estate properties through Leestma Management, another company he founded and owns.

Without much success in finding the right contractor, Leestma said he spent about a year researching solar arrays and installations. He ended up taking charge on the installation of solar arrays on all his commercial buildings at the time.

The result was a “raging success,” according to Leestma.

“We started saving about a quarter million dollars a year on electric, and the value of my properties went up by about two and a half million dollars,” he said. “I felt very strongly that I had found kind of the sweet spot to maximize the value and the profitability of my properties.”

Leestma began to spread awareness to colleagues in his industry, and Adelaide started to take off. In addition to maintaining the installations at Leestma’s own properties, Adelaide Energy now has worked with clients in the RV industry, the industrial market, storage buildings, lease-tenant properties and mixed manufacturing companies.

Adelaide Energy also expanded with an operations office in Indiana. The entire team consists of about 25 people, though Leestma expects that number to grow as the company is hiring for several new positions.

He said it’s been rewarding to witness the benefits his clients are able to experience through solar energy.

“It’s been extremely gratifying to show property owners how they can increase their profitability, increase the value of their properties and how they can differentiate themselves from other properties in the marketplace,” he said. “On average, tenants are willing to pay an extra $1 per square foot if they know that the property has renewable energy. So, if you have a million square feet, it’s an extra million dollars a year. It’s not a bad deal.”

Leestma also finds Adelaide Energy’s growth encouraging especially as a lack of education for the solar market in Michigan is something he has experienced.

“There is an opportunity here — there’s just no education in the market as to what solar is,” he said. “I mean, I constantly would hear questions like, ‘Well, aren’t we too far north? I thought that you could only do solar like in California or Arizona.’ And that’s just not the case.”

To be sure, Michigan traditionally has been known for a prevalence of cloud cover compared to sunshine. Last year, Farmer’s Almanac ranked Michigan among the top 10 cloudiest states, citing just 65 to 75 clear sky days for the state per year.

However, Michigan currently ranks at No. 26 in the country in terms of solar conversions, according to EcoWatch. Residential solar conversions in the state have increased in popularity year over year for the past decade and are expected to continue growing.

Looking ahead, Leestma said he expects Adelaide Energy to reach $10 million in revenue within two years, or potentially next year. 

With so much economic uncertainty occurring, Leestma emphasized the low risk factor when it comes to solar energy.

“Ironically, I think that solar actually becomes a better investment idea in a recession than when things are prospering,” Leestma said. “It’s a great hedge in insulating the value of your operation and it’s a great hedge in creating cash flows and wealth … and that’s how you make sure that prosperity continues in a variety of economic conditions.”

If the last year has shown him anything, it’s that solar energy indeed has the potential to keep growing here in Michigan.

“In terms of innovation, this is kind of one of those deals like migrating from a typewriter to a word processor,” Leestma said. “Why did you do it? It saves a lot of money, right? It’s the same thing with solar. Why would you migrate from any number of different technologies out there? That’s really all this is — that this is effectively an innovative technology idea related to energy that is just getting its footing here.”

He added, “It’s just been extremely gratifying to bring another innovative idea to the market.”

This story can be found in the Dec. 26 issue of the Grand Rapids Business Journal. To get more stories like this delivered to your mailbox, subscribe here.