Did you know the industrial sector alone accounts for around 37% of global energy usage?
For most manufacturers, energy may not be something they typically think about when making day-to-day decisions. But what they have likely noticed is that more energy-intensive equipment coupled with rising energy rates are affecting both their business’ bottom line and carbon footprint.
So, it shouldn’t come as much of a surprise to see manufacturing companies rethink their energy strategies – particularly in food and beverage manufacturing, which is now one of the most energy-consuming and emissions-intensive industries in the U.S.
And incorporating solar in its energy mix is one of the significant steps food and beverage companies nationwide are taking to reduce the cost of rising electric bills while taking measurable steps toward reducing emissions.
And this is your guide to helping your beverage manufacturing company do the same.
In this blog, we’ll explain how beverage companies today are leveraging the sun’s power to save on high energy costs and meet sustainability goals.
How Beverage Companies Are Using Solar Power
The beverage industry is massive, consisting of everything from wineries, breweries and distilleries to coffee brewing and soft drink manufacturers.
But what beverage manufacturers have in common is production processes that require massive amounts of constant energy. And this often results in high utility bills due to rising utility rates and costly peak demand charges.
That makes solar energy one of the most proven and best options to reduce costs and carbon footprint.
But going solar is about more than just having solar panels installed on your property.
Pairing onsite solar and storage – and financing it as a Power Purchase Agreement (PPA) – is an incredible energy solution that provides cost savings for your business while staying in line with laws and mandates.
On-Site Solar Installations
Although beverage makers continue departing from the grid toward a solar-powered future, it’s up to each individual company to choose the best option for their onsite solar projects.
Here are the most popular onsite solar options:
- Rooftop solar arrays are often ideal as most beverage manufacturers have substantial rooftop space. Customized solar arrays help to leverage this unused space and maximize energy generation.
- Organizations with land available on their property may also prefer adding a ground-mount solar array positioned for peak solar energy production.
- Some beverage manufacturers also take advantage of space in their parking lots by installing solar canopies, which double as an energy generation source and shield vehicle fleets, employees and guests from harsh and inclement weather conditions.
- Combining solar with energy storage allows beverage manufacturers to mount the best defense against costly and fluctuating peak energy demand charges. By storing low-cost energy and delivering it during peak periods of higher electricity rates, they’re able to boost their solar PV savings and get budget certainty for years.
No matter how you look at it, an onsite solar solution can be designed to be a win-win for beverage companies, creating a cohesive, sustainability-first mindset while eliminating dependence on the utility grid.
How the Beverage Industry Is Benefiting from Solar Energy
Cost Savings
As a beverage manufacturer, energy is likely one of your largest expenditures. That can make the sting of surging utility prices all the more painful.
Take California, for example, where electricity prices have more than doubled over the past decade. Or Hawai’i, which continues to see the country’s highest electricity rates.
And what’s more: Even more rate increases are predicted to be on the horizon.
Demand charges for businesses with round-the-clock and energy-intensive operations, like beverage manufacturers, often face costly peak energy demand charges that can make up more than half of their utility bill.
Some states may allow you to sell your excess solar back to the utility through net energy metering policies. However, as with California’s NEM 3.0 program, excess solar energy may be sold at a much lower rate.
That’s why a growing number of states are choosing to incentivize energy storage – and that’s also why beverage manufacturers are seeing solar + storage as the most economical energy choice for their businesses.
Energy storage batteries are charged during off-peak hours and low-cost time of use rates and then discharged during peak hours, a move that helps organizations even out their energy load.
In doing so, they can reduce their overall energy consumption from the grid while combating demand spikes and high time-of-use charges during peak hours.
And when financed as a PPA, you can increase your savings even more by:
- Locking in a fixed rate for the length of your contract, which typically lasts 20-25 years
- Eliminating upfront costs and capital investments and freeing your capital investments for other business priorities
- Eliminating the need for dedicated staff for operations, maintenance, and system optimization
Environmental Impact & Mandates
As the beverage manufacturing industry experiences a push to accomplish sustainability goals, there’s a reason why many have turned to solar as one of the most significant ways to achieve these goals.
Solar energy is clean. It’s renewable. And it’s increasingly affordable.
By incorporating solar energy, your business can significantly reduce emissions when it begins operation – and for the next 25 years of your system’s life cycle.
Not to mention, solar also provides opportunities for beverage companies to maintain energy efficiency and sustainability, even as they scale. So, when a business’s energy needs grow, sustainability progress doesn’t have to rewind.
Setting sustainability targets and goals is largely voluntary for some states.
However, given beverage manufacturers’ high emission rates, states are increasingly considering going beyond offering incentives. Some states are issuing full mandates.
For instance, California is now the first state to require solar and energy storage systems on all new (and some retrofit) commercial buildings. The mandate is part of the state’s effort to become carbon neutral by 2045 and reduce its reliance on fossil fuel.
And while California may be the first state to make such mandates, the U.S. solar industry is now a 50-state market. Twenty-four states, plus the District of Columbia, have 100% clean energy goals. And several states are exploring building codes updates and local legislation to encourage or require solar.
As your business needs grow, so may the need for more ambitious sustainability targets, facility expansions or new construction. Now is the time to proactively work with a trusted solar developer to better ensure you meet current and future regulations.
Energy Independence and Resilience
Downtime, grid failures and energy fluctuations can unfurl into thousands of dollars of losses every minute.
Combining energy storage and onsite solar allows you to become energy-independent, take back control of your energy output and reduce your reliance on the grid.
By releasing energy when needed, you can protect your operations against these brief, unplanned power outages and grid fluctuations that can impact sensitive equipment.
That makes solar + storage a more reliable approach to helping to ensure a consistent and seamless flow of energy for your business instead of relying solely on the utility grid for power.
Firestone Brewery: A Successful Solar-Powered Beverage Company
A great case study of the power of solar energy in the beverage industry is the Firestone Walker Brewery Company.
Breweries are immense emissions-intensive operations, but Firestone decided to set a goal to lower energy usage and promote long-term sustainability. The solution? Build one of the largest solar panel farms in the craft beer industry. The experiment yielded terrific results.
With the help of PPA financing, Firestone installed a 2.1 MW solar PV array and a 281 KW solar-powered carport, which powered 4,055 megawatt-hours in the first year alone. The power generation was enough to support most of its annual production of 6 million bottles and offset 3,231 metric tons of emissions.
Start your Solar Journey with REC Solar
Adopting solar energy takes work, but REC Solar stands ready with over 25+ years of experience in commercial solar to help your business meet and exceed sustainability goals.
There’s never been a better time to make the transition to solar. And we’ll guide you through every step of the process. All you have to do is take the first step: Reach out to REC Solar and schedule a free consultation.