A New York cultivator recently received a significant cash boost through grants, plus additional savings in electric expenses during power negotiation and efficiency upgrades. During a recent facility expansion, this cultivator accessed an Economic Development Grant, an Energy Efficiency Rebate, and an updated competitive power supply contract. This coincided with enhancements to operational systems including improved energy literacy, strategic power negotiation, forecasting, and service upgrades.
Energy Advisors
While this facility may not have initially sought out energy advisory services, their engagement with Seinergy during critical negotiations, beyond just the energy rebate, resulted in savings exceeding $1 million in capital and operating expenses. This strategic partnership has positioned them favorably in New York’s competitive cannabis market.
Economic Development Incentive
Two years ago, the previous owner of a mid-sized cannabis operation in New York reached out to Seinergy seeking an “Economic Development Incentive.” They were in the midst of expanding their cultivation facility and had heard about potential funds available from their electric utility to offset the costs of upgrading their power infrastructure.
However, the owner lacked the time and resources to determine their eligibility or to complete a nuanced application. They were making significant investments in their facility, including a new transformer, site-work, and switchgear. The utility’s economic development program offers reimbursements to companies for energy infrastructure investments that keep businesses local. Similar grants are available through many mid to large-sized electric utilities across the US.
Seinergy successfully qualified the project and managed the Economic Development Grant process. Ten months later, they received a $440,000 check.
Custom Rebates
Concurrently, Seinergy identified an opportunity for two utility rebates totaling over $100,000. The first project involved retrofitting the facility from traditional HPS lighting to an LED-HPS checkerboard system. The owner chose Gavita 1930es fixtures, balancing spectrum, cost, and ease of 1:1 replacement of existing HPS fixtures. In addition, a second rebate for 48 high-efficiency Quest 335 dehumidifiers was received. In total, the cultivator received over 20% cash back for their investment in Gavita and Quest equipment.
Power Supply Negotiations
During the application processes for Economic Development and Energy Efficiency rebates, the business changed ownership. The new owners inherited a relationship with an energy broker who urged them to swiftly sign a long-term, fixed-price power contract. New York is an energy deregulated state, allowing customers to choose between purchasing power from the distribution utility or from a competitive power supplier with varying pricing structures. Fortunately, before committing to the contract, the new owners consulted Seinergy.
It was clear to Seinergy that the proposed contract was not in the cultivator’s best interest, and would have cost them an additional $800,000 over two years. Collaboratively, Seinergy and the new owners issued an RFP, engaged a more favorable energy broker, established improved load forecasting and energy modeling capabilities, and contracted with a new power supplier who has consistently outperformed the market.
Nuanced Energy Comprehension Needed
In a fiercely competitive business landscape, every investment and decision requires careful consideration. Financial and energy literacy are crucial components of success. However, many cultivators do not have the internal expertise or bandwidth for nuanced energy comprehension. Seinergy assists cultivators caught in a myriad of decisions surrounding electric systems and strategies.
Are your electric costs >$100,000 / year? Opening or expanding a facility? If so, we’re confident we can find you time, $$ and electric savings. Schedule a free consultation today. Email rebates at seinergy dot com More info here.
