MJBiz - July/August 2024 - 41

does not require significant effort
to apply for the funds. (A onepage
form often suffices to nab an
incentive.)
Custom programs, on the other
hand, are more involved and
require the applicant to submit
a compelling case for earning a
facilitywide incentive. This often
will include sharing details about
your existing operation and
proposed project, then submitting
rigorous energy-savings calculations
owing to your proposed upgrade.
In a custom application, you also
can apply to receive rebates for more
than one technology group at a time,
which can net a larger incentive.
HOW LONG DOES IT TAKE?
Prescriptive applications tend to
get approved within two weeks,
whereas custom project applications
can sometimes take months. Once
approved, the business can proceed
with the equipment purchase.
Once the equipment is installed,
it will undergo a utility review and
cross-check invoices before cutting
a check.
WHAT'S THE CATCH?
Unfortunately, incentive
opportunities can fall apart or result
in disappointing numbers for any
number of reasons.
Like any contract involving large
sums of money, be sure to read the
fine print so you know exactly what
needs to happen for the utility to
pay out. For example, a growing
number of utilities, such as Arizona's
Salt River Project, require postinstallation
energy monitoring to
prove the projected energy savings
exist in the real world. If their studies
don't match the expected savings,
your incentive check will get dinged.
Additionally, the landscape on
which these programs exist might
shift. For example, for budgetary
reasons or in response to the public
Business owners should be aware that terms of rebate contracts can change.
Photo by stock.adobe.com/hxdyl
utilities board, utilities can and
often do switch the terms of their
programs. They might revise their
incentive levels, cap the amount
an applicant can get or eliminate a
program altogether.
Changing energy codes for
growers affects incentive levels.
For example, once Massachusetts
cannabis regulators required
growers to use only horticultural
LEDs in most cultivation facilities,
utilities could offer incentives just
for those projects that delivered
savings above the code. This
resulted in far fewer incentives
and at lower levels for cannabis
cultivators than before.
The biggest mistake I see growers
make is jumping the gun on
upgrades. For example, purchasing
new equipment before the utility
sends its preapproval rebate is a
surefire way to kill your incentive
opportunity.
Also, if you want to retrofit a room
that has old HPS (high-pressure
sodium) fixtures, don't make
any changes to the room before
contacting the utility. In many cases,
if you take down the old lights before
getting preapproval, the incentive
will drop because the retrofit
opportunity has become a less
lucrative " new construction " project.
FOR THE WIN
Many cannabis businesses simply
don't have the bandwidth or time
to commit to the effort needed to
secure a successful energy and
efficiency incentive-especially in
states where custom applications
are required. If you have any
questions about what you can do
without jeopardizing your rebate,
make sure you understand how the
program terms apply to your unique
situation.
If necessary, be sure to budget
adequate time (or retain a
consultant) to ensure that your
project application gets over the line
with minimal delay and maximum
payout.
Sam Milton is the founder
and principal of Climate
Resources Group.
Reach him at sam@
climateresourcesgroup.com.
mjbizdaily.com | July-August 2024 41
http://stock.adobe.com/hxdyl http://www.mjbizdaily.com
MJBiz - July/August 2024

Table of Contents for the Digital Edition of MJBiz - July/August 2024
