Real Savings in the Greenhouse
By Julie Hullett, Senior Editor of Greenhouse Grower
Greenhouse growers are constantly looking for more opportunities for Climate Smart Farming. The benefits of this are twofold — environmental protection and cost savings. Electricity and gas for a greenhouse can be a major chunk of the operating expenses, which is why energy rebates are a huge opportunity to reduce costs.
Energy rebates typically come from utility providers when a grower selects technology or equipment that is energy efficient. Utility providers vary greatly across North America, however, so unfortunately, the process of applying for energy rebates quickly becomes complex. Despite this obstacle, industry experts recommend installing energy-efficient technology and working with your local utility provider to reap the rewards.
In many cases, energy rebates may be an untapped resource. Growers who access these incentives may receive a significant reimbursement for their new technology, but if growers are not aware of their options, they could miss out.
“Energy management is an afterthought at best,” says Melanie Yelton, Founder and CEO of Grow Big Consultants. However, there are programs that are encouraging the industry to bring these considerations to the forefront.
For example, with the creation of Greenhouse Lighting and Systems Engineering (GLASE) — a public-private consortium merging leading-edge academic research with the marketplace expertise of industry practitioners — Yelton says there was a bigger emphasis on switching from HPS to LED lights. Many utilities provided incentives for that switch, and growers installed new lighting. Since then, energy rebate programs have become more complex and nuanced.
"For every new build, there should be an energy modeling exercise. It’s not that difficult and can save you millions of dollars."
Principal Neil Coppinger at Grow Big Consultants says the reliability of new equipment is critical. Utility providers are looking for technology with a long lifetime. A top-quality lighting fixture, for example, will save more energy in the long run.
“Work with someone who will put an energy plan together,” he says. “Greenhouses spend millions of dollars. For every new build, there should be an energy modeling exercise. It’s not that difficult and can save you millions of dollars.”
The utility providers have three goals, according to Ron DeKok, Chief Commercial Officer at Grow Rebates. First, there is an increasing trend across the country of rolling brownouts and blackouts, so utilities are looking to reduce energy consumption.
Next, utilities are looking to improve their environmental impact. Providers would like to make their environmental footprint as green-friendly as possible.
Finally, utility providers are looking to minimize their infrastructure build. By offering incentives to growers, they can accomplish these goals and help the entire system use energy in the most efficient way possible.
“These are incentive programs,” says Rob Ezell, Chief Operating Officer of Grow Rebates. “They’re trying to steer behavior and induce an action, that action being energy efficiency and equipment upgrades.”
Several reports within the last six months cite that incentives are far underutilized. it’s not a scary process [and] it can be very economical for the growers.
He says utilities are working to balance the incentive programs so they work well for everyone. For example, engineers at the utility provider are looking for as much detail as possible when growers submit energy efficiency data. However, more complexity in the incentive program means the program gains less traction among growers. When growers enlist assistance from industry experts, they can navigate the process more easily.
“Several reports within the last six months cite that incentives are far underutilized by growers,” DeKok says. “We want them to be aware of it and know that it’s not a scary process. It can be very economical for the growers.”
Gretchen Schimelpfenig, Senior Energy Engineer at Energy Resources Integration, says growers should investigate the longevity of an energy rebate program that they are interested in. Once a rebate becomes popular or the utility reaches their savings goal, the utility provider may reduce or eliminate a rebate. If enough growers switch over to more energy efficient equipment, the utility provider may not need to offer a financial incentive anymore. The structure of rebate programs also changes every year, so growers should research what electric and gas utility programs look like for the upcoming 12 month period.
Utilities will likely request data to validate the anticipated energy savings. Growers do not have to release proprietary data, and utility providers will protect their data. Sharing data will help growers, not hurt them.
“On the electric side, LED lighting rebates will still be a strong offering for the next couple years. But at some point, the utilities will say that LEDs are no longer an emerging technology, so they don’t need to give as big of a rebate for them anymore, or they may offer no rebate at all,” Schimelpfenig says. “Take advantage of utility programs while they’re around.”
Schimelpfenig adds that utilities will likely request data to validate the anticipated energy savings. Growers do not have to release proprietary data, and utility providers will protect their data. Sharing data will help growers, not hurt them, she says.
