The best time is now
Commercial Growers, are you considering LEDs? The time to convert is now! Stop wasting operating budgets on electric bills, and let your utility help you upgrade. The payback on efficient fixtures can be 3-6 months. The final stretch of 2022 is perfect for retrofitting indoor agricultural operations; some utility budgets are running out, others are offering year-end bonuses, and rebates will most likely lower in 2023. We’ve highlighted our most, and least, impressive states for rebates below.
Best States for Retrofit Rebates
New York: The state of New York deserves a callout to celebrate their currently-high rebates through a statewide program (10-50% back), as well as a specific urgency for acting now. Due to anticipated change in regulations, New York indoor cannabis rebates may disappear in 2023. Secure your funding while it’s still an option.
Michigan: Michigan still holds the prize for the best overall rebates and most flexibility. Growers can receive up to 100% cash-back on some fixtures (we had to triple check the numbers to believe it ourselves). Detroit Edison, Consumers Energy and City of Lansing are simple to work with and pay high for efficiency projects. Even if you’ve already purchased equipment, you may still be eligible in Michigan.
Oklahoma: Oklahoma lives up to its reputation as a commerce-friendly environment, removing barriers to starting a cannabis business as well as receiving energy rebates. Kudos to Public Service Co of Oklahoma and Oklahoma Gas and Electric for your generous grow light incentives.
Washington: Investor-owned PSE, Avista and Pacificorp all support commercial efficiency projects. In addition, many smaller providers such as Seattle City Light, Snohomish PUD and Clark PUD offer efficiency funding.
Oregon: The ETO’s $5-12/pint DEHU incentive is by far the best in the country. And, with a $250,000 cost cap, commercial growers can access most sizes of rebates. In addition, any individual can purchase up to 5 fixtures and get a $350 instant rebate at the register.
California: Retrofit-only rebates (without facility expansion) are new and huge! Growers can earn up to 100% back over 1 year. SMUD offers incentives for new builds, up to $150k/year; but you must apply before you buy.
Worst States for Rebates
Ohio: A legal scandal erupted through Ohio’s utilities in 2020 involving coal interests, bribery and the FBI, causing all rebates to grind to a halt. Although utilities do not offer rebates, the grid operator (PJM) will pay for demand reductions – typically about $30 per LED over 4 years.
Massachusetts: Massachusetts has discriminated against cannabis crops, removing most fiscal support for efficient equipment through their 36W/sq ft mandate. However, if you grow lettuce in MA, the rebates are fabulous.
Illinois: Similar to MA, IL also gutted utility rebates for flowering cannabis plants and most HVAC measures. Yet, you can still get rebates for cannabis veg lights. Go figure.
California: How did California make the best and worst list for rebates? Although robust and widespread for retrofits, as noted above, the devil is in the details for CA rebates. Utilities – with the exception of SMUD – have made new construction rebates impossible. Plus the CPUC directly undermines viable projects and giga-watts of readily available demand reductions by claiming that LEDs are “industry standard practice”, and thus not eligible for rebates.
Next steps
Always consult with a professional before you purchase equipment. At seinergy, we specialize in bringing you the largest rebates on the table, and managing the process. Let’s talk about your project today.
