Issue link: http://winesandvines.uberflip.com/i/619725
110 WINES&VINES January 2016 CONSTRUCTION Winery Solar Savings Threatened Politics could end incentives and slow installations after 2016 By Paul Franson W ith more than 100 California wine producers identified in public re- cords as having installed solar arrays, wineries have been some of the most enthusiastic adopters of photovol- taic energy. They've been doing it for a long time. Fetzer Vineyards in Mendocino County, Calif., has been operating on 100% renewable energy since 1999. This is through a 911 kilowatt (kW) photovoltaic system and another 40 kW pho- tovoltaic system, with the remaining energy purchased from a direct-access provider that supplies energy from wind turbines. It also has upgraded equipment and processes to improve energy efficiency. Shafer Vineyards in Napa Valley, Calif., says that in 2004 it was the first winery in the United States to use 100% solar power. Future solar installations are threatened, however, by two political developments that could slow or end their installation, put an end to incentives and change aggregation costs to reduce benefits. An end to incentives The 30% federal tax credit for solar energy will expire at the end of 2016 unless it is extended. "We expect a backlog from wineries and other business that have been sitting on the sidelines for some time," said Rob Erlichman, founder and CEO of Sunlight Electric. "With an expected surge in demand, we're telling prospective customers that if they call us in Q3—maybe even Q2—we and just about every other competent solar integrator will be booked solid, and prices of panels might go up as they did in 2008. In other words, if a busi- ness is seriously considering solar, pulling the trigger in Q1 at least is the best way to ensure we can get the project done in time." This includes lead times for the electric utility company to do its final inspections, which are often delayed at the end of the year. Nate Gulbransen, president of Westcoast Solar Energy in Rohnert Park, Calif., concurs: "There's a rush to install systems before the Jan. 1, 2017, deadline. I currently have cash purchase RFPs on my desk from Lagunitas, Jackson Family Wines and a few wine-storage warehouses." It should be noted that rebates have rou- tinely been extended in the past. Net metering changes In addition, the utilities want to end net energy metering (NEM), which allows a customer to build one photovoltaic (PV) system to offset the combined loads of having multiple meters instead of one per meter. This is also critical for wineries, which typically have multiple meters on their properties. "There is a big de- bate going on at the California Public Utilities Commission (CPUC) about the future of net energy metering," said Gopal Shanker, presi- dent of Récolte Energy in Napa, Calif. "This program was and is critical to wineries going solar in such large numbers. The utilities are fighting to end it, but wineries are fighting to keep it going." Westcoast's Gulbransen added a sales pitch that the solar industry is expected to run out of materials this year. "By year's end, equip- ment will be going to the highest bidder, so those companies that are interested in solar need to get going now." Other interesting developments Positive developments are occurring, however. These include solar panels over ponds and septic leach fields, plus energy storage. KEY POINTS Wineries have been leaders among businesses adopting solar power. Installations are threatened by develop- ments among public utility companies. Wineries also are testing on-site storage to level energy demand and costs. Robert Keenan Winery installed pole-top solar arrays at the end of vine rows in 2006.