Rio Bravo Ranch, A Hot Solar Success

Rio Bravo Ranch, located in Bakersfield, CA, is one of the state’s oldest citrus, almond, and walnut operations. They have, however, taken a new approach to energy use.

James Nickel, a sixth-generation member of the farming family that retains Rio Bravo Ranch as a division of Nickel Family LLC, called upon Cenergy Power, of Merced, CA, to help them make the switch to solar. “We’ve converted several of our agricultural pumps and wells as well as our office with use of a solar carport over to solar power,” he says of the extent of his conversion.

“It took a while for some people to come around to the idea,” he says of his coworkers’ traditional views on energy. “We started off small and then grew little by little. They were worried about how it really works, and as a large capital investment, they were concerned that the savings wouldn’t live up to the promises.”

Based on their experience, though, the estimated savings are far more than just hot air. Nader Yarpezeshkan of Cenergy says, “Growers, or any user of solar power for that matter, will realize savings once the system is plugged into the meter and Permission To Operate (PTO) is granted by the utility company. As far as payback of the solar investment is concerned, we see an average of four years.”

Nickel estimates that payback even sooner, saying, “you see savings from a year forward. You have to run the whole cycle of a season to understand the savings.”

As far as risks and challenges go, however, Nickel does warn that the initial understanding of the “rebates, tax credits, and accelerated appreciation” was a bit difficult. “Getting the bills together and identifying which meters made the most sense to target” was also complicated.

That’s not to say it wasn’t well worth it, though. “We’ve locked in our price of power for years to come,” he confirms. “Tax credits and subsidy payments, a lower carbon footprint, and being a greener company,” are all listed as benefits to the switch.

Yarpezeshkan agrees. “Apart from the rapid payback, high internal rate of return, and secured hedge against future inflating electricity charges, there is strength in marketability,” he says. “The business, or growers in this case, can demonstrate the solar system as a shimmering example of the company’s devotion to the environment.”

With benefits like those, you might wonder what you have to do to get into the use of renewable energy. To begin, Yarpezeshkan says Cenergy, “thoroughly analyzes several years of electrical utility usage of the facility. After the power consumption of the facility is examined, an on-site evaluation is conducted by an engineer in order to survey the physical characteristics of the proposed solar site. Subsequently, upon the client’s approval, we will produce an optimal solar system design package for permitting.”

As far as finances are concerned, “all tax and solar rebate applications are also processed and administered by us in parallel. Currently, there is a 30% treasury grant (the 1603 program) where the federal government provides a payment of 30% of the gross cost of the solar system within 30 days of system commissioning. In addition to the grant, there are utility rebates and federal and state depreciations to take advantage of.”

After all of this is in order, “the city and county must approve the proposed solar engineering and structural documentation, and then we can break ground on the project. Depending on the size and complexity of the solar system, installation can take anywhere from 30 to 60 days. At this point, the solar system is connected to the facility’s meter and the solar system begins feeding clean power back to the grid, all the while offsetting the facility’s energy consumption and providing net-metering credits. Net-metering is the process in which the utility company buys the power you do not consume at the proposed retail rate.”

With Cenergy streamlining the process, Nickel says he felt comfortable making the commitment due to the fact that “it was a good, safe investment. The numbers were there, so we felt like there wasn’t a lot of risk involved.”

Yarpezeshkan echoes Nickel’s statement, saying “we treat every potential solar installation as a custom job. The engineering and design goes through a rigorous vetting process in order to maximize the solar system’s electrical production and reliability while providing unmatched value.”

With both the consumer and the provider on the same page, Nickel can confidently say that he has learned a lot from the process and is happy with the decision. “It is a good story to convey,” he says.