All of this is fluid, however, and that is largely due to something called “net metering,” a practice simple in concept but applied with significant differences by region. In its most simple terms, net metering can be broken down as follows: Your solar panels are likely to produce more energy than you actually need to power your facility. That extra energy can be sold back to the grid at a profit. In an ideal world, a utility company credits that excess power at the retail price they would normally charge, and sometimes that will be the case. Unfortunately, promo companies have learned that any given solar power generator is at the mercy of the utility company whose jurisdiction they are under. “Most people think they are getting dollar for dollar [back from the utility company],” Vernon says. “That was a big learning example for us.” For this reason, the vendor The Vernon Company used recommended building the solar panels to provide only about 70% of the power needed for the facility, rather than spending for panels that generate excess energy and getting a bad deal from the grid. This development resulted in extending payback for the facility’s solar panels by potentially two years. Even in New Hampshire, Gray realized that the utility company was being “stingier on purpose” with its approach to net metering. In a normal transaction, PromoCentric’s utility group charges for supply and for delivery. Even if PromoCentric is the one sending power out, the delivery charge remains the promo company’s burden. “It does extend the payoff,” Gray says, “and I have to imagine they’re going to keep doing that as time goes by because obviously, they’re going to keep losing revenue. They’re going to do what they have the power to. I mean, they’re a monopoly, right?” Kadam says “it is very much patchwork” because of the variations by utility and state. But even with these inconsistent policies, easily generating your own power rather than relying on a utility company is a money saver. Cutting into a monopoly can allow you additional solutions too, one of which is battery storage, something Chris Vernon says his company is actively considering. Instead of putting that excess power into the grid, a company with solar panels can store it on a battery and thus hold it for when they need it. The sun only shines during the day, but why rely on the utility company at night when the daylight hours should typically supply all the power you need? “You don’t have to worry about sending energy to the grid,” says Kacie Peters, director of industry relationships for Pivot Energy. “You’re using it, storing it and then using it again.” It is, of course, also possible for a supplier to partner with a plant that has already installed solar panels, as SanMar did with a factory in Honduras called Elcatex, which SanMar eventually made an equity investment in and went on to buy half the company. Emily Gigot, SanMar’s senior manager of sustainability, says the plant has seen cost benefits due to the lower cost of power generated from solar compared to other fuels. The company is also exploring solar panels at additional locations. “Our supplier is able to track the environmental benefits of solar based on the carbon emissions avoided for every kilowatt hour of electricity generated by solar versus an alternate source,” Gigot says. Must Read | Solar Power How much power can the sun generate? The amount of sunlight that touches the earth’s surface in 90 minutes is enough to power the world for one year, according to Energy.gov. This renewable and infinite source of energy is an easy and efficient way to offset carbon emissions, and its processes do not emit pollutants, therefore it does not contribute to climate change the way burning fossil fuels does. The solar panels at Geiger’s headquarters, for example, eliminate about 320,000 pounds of carbon pollution from fossil fuel power plants every year, according to the company. Your solar panels are likely to produce more energy than you actually need to power your facility. That extra energy can be sold back to the grid at a profit. Fit Ztudio / Shutterstock.com 62 • JUNE 2023 • PPAI
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