In early 2020, the team at Presidential Garden Group, Inc. was breaking ground on an indoor cannabis farm in California, and were considering purchasing high-end LEDs. They wanted a facility that implemented the best growing science, the safest working environment, and efficient utilization of resources such as space and electricity. LEDs would complement their state of the art facility buildout in a renovated warehouse near Sacramento.
The team knew from the perspective of investors and cash flow management, price was a barrier to getting the best equipment. And the energy savings and lack of bulb replacements made LEDs the best choice by cost over time. They were encouraged by apparent energy efficiency incentives for industrial clients from their electric utility, Sacramento Municipal Utility District (SMUD).
PGG’s executive team worked closely with their lighting vendor and SMUD to ensure that they were applying for incentives properly. I’s dotted and T’s crossed, the team purchased and installed their Gavitas. However, when they went back to SMUD to request the incentive, utility staff backpedaled on the offer, citing changes in incentive offerings due to Covid and a missed step in their application process. According to SMUD staff, their incentive was never secured.
Luckily, around this time Hawthorne and Gavita started working with Bob Gunn and Seinergy to advocate for customers, like PGG, to ensure energy incentive success. Seinergy combed through detailed records of communication, compiled a report, and convened multiple meetings with utility management. Seinergy argued that although the final application step was missing, it was not adequately communicated and PGG made a good faith effort to secure pre-approval. In the end SMUD honored their incentive offer. Last August, Presidential Garden Group finally received a six-digit rebate check from SMUD, offsetting the price of their Gavitas by about 25%.
According to Joe Cavallero, VP of Cultivation “Bob Gunn was a steady guide through the expedited appeal to get our LED incentives back after almost being removed from the local utility’s budget. He thoroughly answered every question we had and proved invaluable throughout the entire process.” Another member of the PGG team remarked that “without Seinergy we would not have received our rebate and our relationship with the utility would have been tarnished.”
This project had a happy ending, with the grower receiving their rebate. However, many other jobs have gone awry without the oversight of a rebate manager, with growers unknowingly disqualifying themselves or receiving a much smaller than merited rebate. Utility rebates require fronting the full cost of equipment – often tens or hundreds of thousands of dollars, and it is months before the rebate checks are received. This can be a nerve wracking time for a grower with significant financial exposure. Seinergy handles all logistics and utility communication, allowing growers to focus on what they do best while ensuring that the proper rebate check will arrive in the mail.
