Timonium-based Greenspring Energy Soars in Magazine Ranking

A Timonium-based solar energy company has earned national recognition as one of the fastest growing businesses in the country after only four years of operation.

Greenspring Energy, with its inconspicuous office on West Aylesbury Road, was named the 15^th fastest-growing company in the country, and the fastest growing company in the energy sector by Inc. Magazine, a business publication that has been compiling such lists for nearly 30 years. The magazine's listing is based on four-year revenue growth rates, according to a company press release.

The designation is a milestone for founder and president Paul Wittemann. Since starting the company in 2007, Witteman has directed a staff that has grown to 51 employees with additional offices in Reading, PA, and Charlotte, NC. To date, the company has completed more than 1,200 installations of solar energy systems in residential and commercial buildings in a market covering seven states.

For Greenspring Energy, the business challenge is to convince potential customers that investments in solar energy—which can be substantial—will pay off in a reasonable amount of time.

For the average residential customer, installing a solar system can cut electricity costs up to 70 percent, Witteman said. But to achieve such savings, generally an investment of $24,000 to $30,000 is required. Most homeowners find such an initial investment daunting, he said, despite the proven economic benefits over the long-term.

“Solar is still not cheap, although the price of the equipment continues to come down,” Wittemann said. The price of an individual solar panel, for example, has fallen about 50 percent in the four years Greenspring has been in operation, he said.

Wittemann predicted the price of solar panels is likely to continue to fall. Aggressive investment in manufacturing facilities in China means the U.S market is being flooded with lower-cost Chinese products, he said.

Indeed, Maryland’s only factory producing solar panels was closed last year when BP Solar announced it would transfer production to lower-cost foreign plants. Another manufacturer,  Solon, based in Germany, announced last month it would close its plant in Tuscon, AZ, for similar reasons.

Still, Wittemann said he is able to acquire high-quality U.S.-made equipment. As an installer of solar systems, Greenspring does not manufacture equipment, but relies on a network of suppliers. One of the company’s favorite suppliers is a German company, SolarWorld, which manufactures its products worldwide, including at plants in California and Oregon, Witteman said.

“We have a good relationship with SolarWorld and I like the idea that a lot of their products are made here in the United States by American workers,” Wittemann said.

But the cost of the solar equipment is only part of the picture, he said. Equally important are government policies aimed at encouraging alternative energy. One of the reasons for locating the company’s headquarter in Maryland is that state and local governments here are largely “solar friendly,” Wittemann said.

“The calculation of federal, state and local [tax] policies are very important,” when evaluating the economics of a solar energy installation, Wittemann said.

One of the most important incentives is a 30 percent federal tax credit, but there are also state and local programs to encourage solar and other alternative energy sources, according to the Greenspring president. The state of Maryland supplements the federal tax benefit through various programs offering rebates, grants and loans, he said. Furthermore, many counties within the state offer property tax incentives for alternative energy installations, Witteman said.

These are important considerations and can make the difference between an economically viable project and one that is only marginal, he said. For example, the company is able to do many more projects in Maryland than in Virginia because Virginia does not offer the same range of incentives as Maryland, Wittemann said.

The company's sales representatives explain all the relevant incentives to potential customers, he said.

North Carolina is another solar-friendly state  and that's a reason Gereenspring has an office there. Retirees in that area have been receptive to solar energy.

“We find that retirees have a special appreciation for what we do. They are trying to plan ahead based on a fixed income, and utility costs are a big unknown. … Together with federal and state incentives, solar can be a solution for them,” he said.

Wittemann noted that many potential customers are simply outraged at the high electric bills they receive from their local utilities. 

“Nobody seems to like their local utility company very much. … Nobody seems to think that their utility is going to lower the price of electricity any time soon,” he said.