Eastlight Renewable Ventures recently became the first company to graduate from the Dominion GreenTech incubator in Ashland.
The company builds solar energy systems for businesses, universities and municipalities, then sells the electricity to them at a reduced rate.
Charles Valentine, who worked in energy financing, joined forces with real estate developer David Caldwell to start the company in 2009. Both men had been working out of the state but returned to their Richmond roots to get their firm started and take advantage of the new incubator taking shape in Hanover.
BizSense caught up with Valentine to find out more about Eastlight and their plans now that they are out on their own.
Richmond BizSense: What is the business model?
Charles Valentine: Basically we work with corporations, universities and municipalities and help them develop solar projects for their rooftops, buildings or land they aren’t using.
We develop, finance, own and operate them and give them a discount on their electricity so they have energy savings locked in over time.
RBS: Do you have to lease the space from them as well?
CV: There is a lease, but the real economic incentive for them is the discount to the electric bill.
RBS: Where did the idea come from? Are there similar ventures elsewhere?
CV: The solar development business has been around for little less than 10 years, and it’s called a power purchase agreement model. We formed the company about two years ago.
RBS: What made you want to get in the industry?
CV: We saw the cost of solar coming down dramatically. A number of states have put in strong incentives for solar. We think solar will be competive in the future without incentives.
RBS: How does Virginia stack up to other states as far as incentives go?
CV: Our business primarily is in the East Coast and Mid-West. One of the projects we are doing with SunTrust is in Richmond, but most of our activity is in other states. The main incentive states use says utilities must have a certain percent from renewable sources. Virginia has a voluntary portfolio standard, so it is not as strong as other states.
RBS: Why did you choose to start the business in Richmond?
CV: We both actually grew up in Richmond. We were living in different places before the incubator came along. Hanover County had amazing foresight to create a clean tech incubator.
RBS: How did you benefit from the incubator experience?
CV: We were in the incubator for about a year. It was a great experience: A lot of neat companies are there in all sort of fields of green tech. They put together an advisory board for us of local business leaders that was a really supportive and an amazing thing to have when you start a company.
RBS: How did you grow over the past two years?
CV: We have been fortunate to have a number of projects. We had a few projects in the works, now we have several already constructed and several being constructed now. We recently won a project for a municipality in New Jersey.
RBS: How are the projects financed?
CV: We raise money from either private or institutional investors on a project-by-project basis.
RBS: How many employees do you have?
CV: Just the two of us now, but we are about to go into hiring mode. We are looking to add a couple of people over the next six months in engineering, project management and business development.
RBS: What are your plans and goals for the coming year?
CV: We obviously are trying to grow our project base, trying to diversify the states we have projects in. For investors there is less risk for having them in different sates than in one place. We are trying to add good projects, not looking for biggest ones in the world.
Eastlight Renewable Ventures recently became the first company to graduate from the Dominion GreenTech incubator in Ashland.
The company builds solar energy systems for businesses, universities and municipalities, then sells the electricity to them at a reduced rate.
Charles Valentine, who worked in energy financing, joined forces with real estate developer David Caldwell to start the company in 2009. Both men had been working out of the state but returned to their Richmond roots to get their firm started and take advantage of the new incubator taking shape in Hanover.
BizSense caught up with Valentine to find out more about Eastlight and their plans now that they are out on their own.
Richmond BizSense: What is the business model?
Charles Valentine: Basically we work with corporations, universities and municipalities and help them develop solar projects for their rooftops, buildings or land they aren’t using.
We develop, finance, own and operate them and give them a discount on their electricity so they have energy savings locked in over time.
RBS: Do you have to lease the space from them as well?
CV: There is a lease, but the real economic incentive for them is the discount to the electric bill.
RBS: Where did the idea come from? Are there similar ventures elsewhere?
CV: The solar development business has been around for little less than 10 years, and it’s called a power purchase agreement model. We formed the company about two years ago.
RBS: What made you want to get in the industry?
CV: We saw the cost of solar coming down dramatically. A number of states have put in strong incentives for solar. We think solar will be competive in the future without incentives.
RBS: How does Virginia stack up to other states as far as incentives go?
CV: Our business primarily is in the East Coast and Mid-West. One of the projects we are doing with SunTrust is in Richmond, but most of our activity is in other states. The main incentive states use says utilities must have a certain percent from renewable sources. Virginia has a voluntary portfolio standard, so it is not as strong as other states.
RBS: Why did you choose to start the business in Richmond?
CV: We both actually grew up in Richmond. We were living in different places before the incubator came along. Hanover County had amazing foresight to create a clean tech incubator.
RBS: How did you benefit from the incubator experience?
CV: We were in the incubator for about a year. It was a great experience: A lot of neat companies are there in all sort of fields of green tech. They put together an advisory board for us of local business leaders that was a really supportive and an amazing thing to have when you start a company.
RBS: How did you grow over the past two years?
CV: We have been fortunate to have a number of projects. We had a few projects in the works, now we have several already constructed and several being constructed now. We recently won a project for a municipality in New Jersey.
RBS: How are the projects financed?
CV: We raise money from either private or institutional investors on a project-by-project basis.
RBS: How many employees do you have?
CV: Just the two of us now, but we are about to go into hiring mode. We are looking to add a couple of people over the next six months in engineering, project management and business development.
RBS: What are your plans and goals for the coming year?
CV: We obviously are trying to grow our project base, trying to diversify the states we have projects in. For investors there is less risk for having them in different sates than in one place. We are trying to add good projects, not looking for biggest ones in the world.