“Growers are unaware of the savings available on rebates”

In the current competitive and high-cost environment, controlled environment agriculture (CEA) growers face increasing financial pressures due to labor shortages, high operating expenses, and rising energy costs. "To help ease this burden, securing horticultural incentives is crucial for growers aiming to adopt energy-efficient technologies and improve profitability per square foot", says Ron DeKok, CCO of BIG Incentive Group, an organization specializing in guiding growers through the complexities of horticultural incentives. "Financial incentives and rebates play a crucial role in lowering both CAPEX and operating expenditure (OPEX), allowing growers to enhance profitability despite rising costs. Many growers are unaware of the savings available."

Why utilities offer incentives
Energy companies incentivize energy-efficient upgrades in order to manage demand and reduce the risk of strain on the power grid. "Encouraging CEA operations to adopt energy-efficient equipment helps reduce peak demand, which is cheaper than upgrading grid infrastructure," explains Ron. "These rebates benefit growers and align with energy providers' goals to reduce overall grid demand."

By reducing upfront costs and enabling long-term OPEX savings, these incentives provide an appealing pathway to faster return on investment (ROI). "Switching to energy-efficient technologies, like LEDs and advanced HVAC systems, can significantly lower energy bills while improving operational efficiency," says Ron. "This means better crop quality, higher yields, and ultimately, increased profitability."

Key incentives for growers
Utilities and federal programs offer a variety of incentives to support energy-saving upgrades. LED lighting, as one of the highest energy consumers in greenhouse facilities, often qualifies for significant rebates. "LEDs cut energy use while improving light quality, leading to better crop yields and profitability," notes Ron. Additionally, he points out that LEDs have lower maintenance requirements, an important factor given labor shortages and costs.

Other eligible upgrades may include HVAC systems, dehumidification, energy curtains, and control systems that optimize energy use. Incentives also extend to renewable energy installations, with programs like the USDA's Rural Energy for America Program (REAP) offering grants and loan guarantees for renewable energy systems. "REAP helps agricultural producers invest in renewable technologies, covering a substantial portion of project costs," says Ron.

Approach
Given the variety and complexity of incentive programs, growers should approach the application process methodically to maximize their chances of securing financial support. This starts with researching the programs. According to Ron, before purchasing any equipment, growers should research available programs to identify incentives that match their needs. Engaging early with local utility providers or consulting with experts can simplify this process. "Utility incentives vary by location and energy-saving goals," Ron explains, "so it's important to choose equipment that meets program criteria." Next up is the pre-approval process, as many programs require pre-approval before any purchase. "Securing pre-approval is essential to avoid costly mistakes," says Ron. This typically involves submitting project plans with details on equipment specifications, projected costs, and estimated energy savings.

Maintaining accurate records throughout the process is vital. This includes receipts, project timelines, and certification documents. "Proper documentation prevents delays in rebate processing and helps secure every dollar of eligible support," Ron advises. And then, there's the final application and approval: Once the project is complete, growers must submit a final application, including all required documentation, to receive payment. Delays in rebate approval can strain cash flow, so growers are encouraged to stay in close communication with rebate providers. BIG Incentive Group assists with this step, tracking application status to ensure timely processing.

Expert assistance
"Navigating the complexities of horticultural incentives can be challenging, particularly in today's market where capital is tight and competition is fierce. Many growers benefit from working with rebate specialists like BIG Incentive Group, who offer expertise in program requirements and help streamline the application process. Our role is to simplify the process, helping growers avoid pitfalls and secure maximum financial benefit," says Ron.

"Securing incentives involves more than just applying for financial support; it requires thorough planning, timely applications, and meticulous documentation. With the support of industry experts and a clear understanding of the steps involved, growers can take advantage of available incentives, reduce costs, and enhance the profitability of their operations."