Gridwealth CEO outlines expansion in eight states to develop 500 MW by 2027

In the three years following the merger of MassAmerican Energy and Hampshire Power, now known as Gridwealth, the company has laid the groundwork to overcome various renewable energy development challenges and delays, said CEO David Ellis, in an interview with NPM.

Now, the developer, owner, and operator of renewable energy assets, has set out to expand their portfolio in eight states with a target of 500 MW of commercial solar by 2027. Projects will consist of rooftop, canopy, and ground-mounted facilities.

“We’re finally ready to go to scale,” Ellis said. “I’ve been working for over three years to put the company in the position to get to scale and the biggest thing we had to solve for was cash flow challenges by project, program or utility delay.”

All solar developers face project, program, and utility challenges that could result in cashflow destruction, Ellis said, but Gridwealth has the capacity to overcome many of the challenges by having a “predictable cashflow machine.”

“We set up a retail power company and it is the razorblade business,” he added. “It adds stability so that we can take on this rapid expansion.”

Currently, Gridwealth has about 150 commercial solar projects completed or under construction in Massachusetts, New York, New Jersey, Illinois, and Rhode Island. Their expansion plans include California, Colorado, Maryland, Michigan, New York, Pennsylvania, Virginia, and Wisconsin.

The states were strategically selected because they are deregulated power states with community shared solar programs, Ellis said.

“It is those two key elements that allow us to bring forward our development skill sets and experience for both battery storage and solar, along with our retail power supply and energy service business,” he said.

The company is seeking site control of properties in each of the eight states to begin the development process.

“If we’re going into a state, it’s because we know it’s economically viable and that means we can make an offer to the landowner or building owner and start the development cycle—even when there’s some volatility remaining, or uncertainty in the final program that’s going to be launched,” Ellis said.

While Wisconsin is the only regulated power state on the list, Ellis believes there is enough momentum to turn it into a community shared solar state.

“We believe that Wisconsin is going to be moving forward with a community shared solar program, and we’re actively lobbying the legislature and all the stakeholders to make sure that that comes to pass,” Ellis said. “And if it’s not community shared solar, we think Wisconsin is ready to move forward with some kind of program that won’t be controlled completely by the utility.”

A recent development in the Badger State came when the Wisconsin house introduced a community solar companion bill or AB 258 to mirror the Senate Bill, SB 226 that was introduced in April.

Gridwealth is in negotiations with commercial real estate owners in the state with industrial facilities who are looking to benefit from renewable energy by offering their tenants, Fortune 2000 companies, opportunities to meet their Environmental, Social, and Governance (ESG) goals, Ellis said.

“It’s so imperative right now. ESG is becoming a big motivation and if you’re not able to provide that, you become second tier,” he said.

Ellis also predicts that by 2025, battery storage will be about 50 percent of their development, and described battery storage programs and policies across the country as “anemic.”

“We’re not gaining any ground,” Ellis said, adding that in order to truly reduce the carbon footprint, battery storage must be included in all projects to avoid dumping power.

“We don’t need additional power created at 2 p.m. in the afternoon,” he said. “We need power in the evening or other times of day, and we must have battery storage to facilitate that.”

Ellis said the company is actively developing battery storage systems in several states but admitted it’s not great; “It’s quite—as I said—anemic.”

*This story was originally published exclusively for NPM subscribers in May.


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