Solar Power for Cannabis Operations
The cost of electricity across Canada will continue to rise. One way to address this is by using Solar Power. Generating your electricity provides a hedge against future price increases. Solar photovoltaic systems last 25 to 30 years, so they offer a long-term solution. ORTECH has worked on over 1000 projects across Ontario at which solar generation has been installed, and can help you determine the benefits of a solar installation at your facility.
In addition to the cost saving / financial benefits, solar energy provides a reputational/public relations boost. By using renewable energy to generate low greenhouse gas electricity without a government contract, your firm will be seen more positively by investors, clients, vendors, employees and neighbours.
ORTECH offers the following services to assist Licensed Producers of Cannabis (“LP’s”) with considering a solar project.
Step 1: Assessment:
ORTECH will review your utility bills determine the size of project that could offset your entire monthly electricity bills.
This is done by dividing your annual electricity usage by the estimated number of hours of sunlight during the year.
250,000 kWh / 1150 hours = 217 kW system Note: 1150 is a conservative number.
From this analysis, we can assess your rooftop’s ability to carry a solar facility of that size. Typically, we use 40% of usable roof space for solar panel area as a guideline.
Step 2: Feasibility Study
With the price of electricity uncertain in most areas, ORTECH will provide an estimate of price escalation to create a financial model for the solar solution. From here an internal rate of return (“IRR”) can be calculated. ORTECH can also provide Solar Return on Investment or Solar Payback figures. At this point, all incentives will be investigated, such as the Canadian Manufacturers and Exporters’ SmartGreen program for Manufacturers, or the new Green Ontario Fund (financed by proceeds from the Ontario Cap and Trade Program).
Step 3: Solution Development
ORTECH with Kontrol Energy, the parent company of ORTECH, can provide a detailed proposal to deliver final engineering design, procurement of equipment and construction of the Facility. ORTECH and Kontrol would also be happy to provide a proposal for ongoing Operation and Maintenance (O&M) services to ensure that the constructed Facility operates as efficiently as possible.
ORTECH has conducted technical due diligence on over 1000 solar projects in Ontario alone, either for the Independent Electricity System Operator (“IESO”), owners or debt providers. We focus on the key risk factors and provide practical, independent advice to ensure that you:
make your expected payback or ROI,
achieve and can monitor savings, and
have an operation and maintenance plan that maintains operating efficiency without disrupting your plant operations.
ORTECH specializes in helping companies develop business models to install rooftop solar projects that significantly reduce their electricity operating costs. Our experience includes providing feasibility studies to assist in decision-making not only for equipment selection but also for financial modeling, construction of the facility, and monitoring strategies.
Contact us today to begin the discussion to install solar at your LP operations.
For more information, please use the contact form below.