California’s agricultural industry is one of the most popular adopters of solar technology due to extremely high average electricity bills.
Crop growers use large pump systems to push around water for irrigation – causing huge spikes in electricity usage for growers. On-farm agricultural solar PV systems drastically offsets the costs incurred by irrigation primarily using Net Energy Metering.
California growers yet to adopt this technology and considering going solar are now under threat from potential changes to the net energy metering program that will reduce the value of credits received for solar energy shared with the utility and add major monthly fees for interconnection.
Originally, net energy metering 2.0 (NEM 2) allowed businesses with agricultural solar to export over-produced solar energy, sending the extra solar energy back to the utility to be used elsewhere. The solar energy is exchanged for energy-credits currently near the actual usage rates.
These credits are then used various times throughout irrigation periods to offset the high electricity usage needed to run pumps.
With the new proposed NEM 3.0, solar users will receive a fraction of the credit value they would under the current program. They will also incur a monthly fee for interconnection with the grid. This fee could be upwards of $3,000 per month.
Utilities have been lobbying the California Public Utilities Commission (CPUC) to change the net energy metering program, a vote and decision is expected in December 2021.
The proposed changes in NEM 3 are uncertain until the decision is made, but two things are clear;
Agricultural utility customers often use energy differently than industry counterparts, unique electricity load-profiles, and varying times of use create problems that solar can help solve.
While the new program faces detrimental changes, there is still time to apply for the current iteration of net energy metering (NEM 2). NEM Applications must be tentatively approved by December 31, 2021 to ensure “grandfather” status into the current, more lucrative program.
Revel Energy has helped many different agribusinesses take control of how they pay for energy with agricultural solar to create savings and positive cash flow. Contact us today to start a net energy metering 2 application for your business before the potential changes of NEM 3.
Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.
Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.
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Generating independent solar power is one piece of the puzzle. Energy saving equipment like highly efficient LED Lighting completes the system. Significantly reduce energy usage.
Revel is on a mission. Dedicated to renewable energy solutions since 2009, Revel Energy was formed to provide Commercial, Industrial and Agricultural businesses with alternative energy beyond solar. Revel stands out from the competition by paying attention to what makes good business sense to each individual client, implementing a wider range of technologies to free up capital and make businesses sustainable and more profitable.
Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.
See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.
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