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Growers pair solar power with wine to mellow electric bills

solar panel in vineyard
Renewable Technologies, Inc. installed this 5-kW, ground-mounted PV system at Bokish Vineyard in California's Central Valley. Most growers have enough square footage for ground mounting solar arrays. (Photo by Renewable Technologies, Inc.)

Long in the business of turning sunlight into valuable products, California wineries are discovering that modern photovoltaic technology can extract yet another commodity from the sun: clean, inexpensive electricity.

Encouraged by Federal, state and utility incentives, vineyards in California’s Napa and Central valleys have almost become their own niche market for solar power systems. “The reason agriculture has stepped up to the plate so quickly is that growers can make the commitment to the eight- to 10-year payback on solar systems,” said David Lucas of Lucas Winery near Lodi, in California’s Central Valley. “For a homeowner in the suburbs who moves every five years, a solar system may not seem like a good investment.”

Peak consumption matches peak generation

There are more reasons why wineries make excellent candidates for solar power systems. Most have the square footage for ground mounting, and many have storage or utility buildings with large roof space.

California’s net metering program fits perfectly with the seasonal nature of winemaking. Solar systems are at peak production in late summer and early fall. “At harvest and crush, we’re running at peak consumption,” said Facilities Manager Jim Magness of Rodney Strong Vineyards. “The five big refrigeration packages alone are huge power users.”

Last year, Rodney Strong installed a 766-kW, 4,032-panel array on top of its 100,000 sq. ft. barrel warehouse near Healdsburg, Calif. Between its visitor center and production, the vineyard averages about 160,000 kWh per month, though power use drops in the winter, as it does for most growers. Then the company can get credits for the excess electricity from its local utility provider, Pacific Gas and Electric Company.

“We wanted to reduce our energy costs during peak periods,” said Magness, “and we thought it would be the ‘green’ thing to do.”

Like Jim Magness, Lucas has an eye on both the bottom line and the environment that supports his business. The 160-panel array mounted on his winery’s main building is expected to supply all its electricity, making Lucas the first 100-percent solar-powered winemaker in Lodi. “It contributes to the pocket book, but it’s also the right thing to do,” Lucas explained.

Incentives cut first costs in half

From the pocketbook standpoint, state and Federal incentives, as much as good intentions, are responsible for winery PV systems. “Cost-sharing and tax benefits are very important for driving adoption of renewable technology,” said Mark Chandler, executive director of the Lodi-Woodbridge Winegrape Commission.

A mix of state and Federal incentives paid for about half of the $4.2 million the Strong system cost. “We’re looking at a nine- to 10-year payback on the system,” said Magness. “As the technology grows, system costs will come down,” he added.

Lucas also expects to recoup his $166,000 investment in about 10 years. Another PG&E customer, he hopes the excess generation credits will cover the 3,000-sq.-ft. winery’s annual electricity costs of $6,000 to $8,000. “After eight or 10 years, no more electric bills,” he said.

Some California consumers can take advantage of the Self-Generation Incentive program created by the state Public Utilities Commission or the California Energy Commission’s Emerging Renewables Rebate program.

Growers outside the state may be eligible for funds the US Department of Agriculture earmarks for renewable energy and energy efficiency projects. Department of Energy and Environmental Protection Agency funds also target farms and ranches for renewable application.

Solar still maturing

Funding may encourage agriculture businesses to adopt renewable energy, but other concerns must also be addressed if the momentum is to continue. At the consumer end, Lucas would like to see more involvement and cooperation from utilities.

Chandler, who installed a solar-powered irrigation system at his Lockeford vineyard, cautioned growers about the growing problem of farm equipment theft. “Smaller solar equipment and ground mounted arrays need security systems. Someone stole some of our components, including the inverters,” he said. “We’ve had to dismantle the system until we can figure out how to protect it.”

Renewable energy faces broader issues that affect any young industry, added Darryl Conklin, president of Renewable Technologies Inc. His 10-year-old company installed the Lucas and Lockeforde systems. “The industry needs to standardize processes through best practices,” he declared. “When contractors oversell and then don’t deliver, it gives the technology a bad reputation.”

Conklin stressed the need for consumer education. Too often, he noted, customers take the low bid and wind up stuck. “Customers should look for contractors who will be around to honor warranties and talk to other system owners.”

Equipment should come from established manufacturers and carry product certification, he added.

The benefits of renewable energy to agriculture customers continue to outweigh the concerns, however. At the Tulare, Calif., Agriculture Expo in January, Conklin sat on a panel discussion on energy efficiency and emerging technologies that drew the largest crowd of any breakout session. As long as growers need to control operating costs, comply with environmental regulations and stay competitive in an international market, solar power will find supporters among California wineries.