When most people flip a switch or plug in a device, they don’t think about the vast, complicated system working behind the scenes to deliver the electricity they need in the moment. Fortunately for millions of consumers and businesses, Solea Energy, an energy trading business that monetizes the electric grid, is focused on this 24/7.
Every day, the company navigates one of the world’s fastest-paced markets, turning complexity into opportunity. From its beginning as a five-person startup to becoming the largest player in its niche, Solea’s growth has been driven by talent, foresight, and the right financial partner.
Where Energy Meets Opportunity
The electric grid is a massive, complex system that lacks efficiency. With the rise of renewable energy sources, including wind and solar power, the grid often experiences big pockets of supply and demand. The Midwest can experience a large supply of energy when wind turbines are turning, at the same time demand rises on the coast. Moving power from point A to point B is complicated, highly regulated, and time sensitive.
That’s where Solea thrives. The team tracks real-time shifts in the grid, watching weather patterns, market trends, and transmission line capacity. They buy energy where it’s abundant and transfer it where it’s needed by contracting for space on transmission lines.
Working with seven Regional Transmission Organizations (RTOs) throughout the United States, Solea’s exceptional team and proven algorithms keep energy moving around the country while strengthening the company’s bottom line.
From Founding Team to Fully Charged Company
Today, Solea employs a team of 80, headquartered in Overland Park, Kansas, with locations throughout North America and around the globe. The business is the largest by volume in its niche, but it didn’t begin that way.
The company was founded in 2014 by Rusty Smith and Adam Herrman. At the time, Rusty was working for a large Japanese energy company that was preparing to exit the market. Rather than walk away, he saw a potential opportunity and instead asked his employer if he could take his high-performing team and start something new. With the company’s blessing and $5M in working capital raised from local Kansas City investors, Solea started with a small but mighty team of five, four of whom came from the previous employer.
As the company grew its balance sheet, it strategically added more people and continued to grow. Solea became known for its corporate culture and began attracting the very best talent in the industry.
These talented traders, analysts, support staff, and technical experts continue to give Solea an edge. They all share a deep understanding of how energy supply, demand, and pricing interact with each other. They can spot the marginal piece of information that makes the difference between over-supply and under-supply, or rising and falling prices, and act on it quickly.
“Our secret sauce is in hiring,” said Rusty. “We hire talented people who understand what we do and how we do it. They can take the incredible data infrastructure we have and use it to make good decisions.”
With a cohesive, high-performing team on board, Solea continued its growth trajectory.
Growth Powered by a Tailored Approach
Scaling a business in such a nuanced industry required more than just smart hires. As Solea grew, it needed a bank that understood the company and the way it does business. After being squeezed into off-the-shelf structures by other banks, the leadership team at Solea was ready for a more personalized banking relationship.
A board member introduced Rusty and his leadership to Sunflower Bank’s Kansas City Commercial Banking team. Early in the relationship, Rusty met with Mollie Carter, now Executive Chairman of FirstSun Capital Bancorp and Sunflower Bank. From the very first conversation with Mollie, who has deep experience in energy and commodities, the team at Solea realized that Sunflower Bank would provide a relationship, not just a transaction. Mollie understood Solea's business and its complexities, providing insight and guidance that went beyond typical banking interactions.
Over the years, the team at Solea has also connected directly with Neal Arnold, CEO and President of Sunflower Bank, further strengthening the relationship at the highest levels. That continuity and expertise, in addition to knowledgeable local bankers, have been invaluable and have helped Solea succeed.
“Sunflower Bank was the first bank that took the time to understand the nuances and requirements of our business,” said Rusty. “And to not only understand them, but to set up a system of operations that allowed us to really thrive. They didn’t take a standard approach to working with Solea. They created a custom environment with controls and covenants that allowed us to do what we do best, as fast and as large as we could do it. That was really the catalyst for growth for us.”
The relationship between Solea and Sunflower Bank, which started in 2015, has been what Rusty describes as a “rocket ship” ever since.
Creating Custom Covenants for Optimal Operations
Together, Solea and Sunflower Bank built a financial structure that enables Solea to move cash quickly and securely between markets, pivot across regions, and maintain trading volumes.
Sunflower Bank also tailored covenants to reflect the realities of energy trading, striking the right balance of safety and agility in a complex industry. In addition to lines of credit, the Bank provides Solea with Treasury Management services, including cash flow management. With funds continuously moving in and out from RTOs around the country, having a seamless method of managing payables and receivables is critical. Sunflower Bank’s daily loan sweep, which allows access to a line of credit while automatically minimizing short-term borrowing costs, enables Solea to go about business knowing its financials are running quickly and efficiently across markets.
“Sunflower Bank is our most significant capital partner,” said Rusty. “If they didn’t give us the attention and support they did when we started working together, we wouldn’t be where we are now.”
“Solea went from one of our smaller clients when we first met them, to now one of our largest,” said Will Hawkins, Assistant Vice President, Sunflower Bank, and Solea’s local Kansas City commercial relationship manager. “It’s an awesome story and we’re proud to partner with Rusty and his team to support their growth.”
Growing Into the Future
As Solea scaled, so did its need for capital. Recognizing this need, Sunflower Bank took the lead to develop a syndicate with additional local banks, forming a solid group of banks that partner to ensure the lending demands of this rapidly growing energy trading company are met. This out-of-the-box thinking is one example of how Sunflower Bank continues to meet the needs of Solea.
With the syndicate in place and Treasury Management services providing a seamless banking experience, there is no limit to growth. Solea expects to double between 2025 and 2030 with Sunflower Bank and the syndicate group by its side. In addition, Rusty and Adam see Sunflower Bank as their full bank, seamlessly melding Private Banking with their Commercial Banking relationship.
Through all of it, the formula remains the same: steady growth, a focus on smart hires, and a financial partner that understands how to build for the future.
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