Break Free from the Grid’s Grip with Microgrids
California's energy crisis is intensifying. Not only are energy and demand charges rising, but the increases are accelerating at an alarming rate, threatening the very foundation of our state's economy. Over the past decade, commercial and industrial rates have climbed at double the inflation rate – 5.5% annually – escalating to 8.4% in the last five years, triple the inflation rate.
To survive and thrive, businesses must either account for these relentless hikes in their financial planning or implement strategies that decouple their costs from this upward trend. Fortunately, diverse operations such as farms reliant on irrigation and cold storage, factories processing goods, and retailers managing daily operations can escape these seemingly never-ending rate increases by turning to innovative, on-site energy solutions.
One such solution: microgrids. These localized power systems integrate solar, battery storage, and sometimes natural gas or hydrogen. They can operate independently or with the grid, generating reliable on-site energy. Microgrids free you from being fully reliant on the grid and turn energy from a liability into an advantage.
Why Microgrids?
California’s grid is strained by many factors, including wildfires, extreme weather, and high demand, causing outages and volatile pricing. Microgrids can provide a solution:
Cutting Costs: By producing your own power to avoid peak charges, you can reduce expenses by 30-40%. Storing off-peak energy for use during spikes also helps to offset utility hikes.
Boosting Reliability: Maintain operations during blackouts by using stored energy. Act as an “island” with your own generation to keep your refrigeration running or avoiding downtime.
Scalability: It’s not just “one size fits all.” Modular designs allow for flexibility in sizing and the ability to deploy in 18-24 months, versus years for grid upgrades.
Real Results in California
Many businesses are already using microgrids to stay ahead of the curve:
Baking and Food Processing: A major baker installed solar-plus-battery microgrids at six facilities, including locations in Sacramento and San Luis Obispo. These microgrids supply 25% of their energy needs, manage peak demand, and mitigate costs without upfront capital – an ideal solution for energy-intensive operations.
Fast-Food Retail: In Wasco, a Wendy’s uses a solar-battery microgrid via energy-as-a-service. It generates on-site power at lower rates, enables net metering for excess sales, and provides backup for outages with no initial investment.
Cold Storage and Ag: Companies in Central California produce 60% of U.S. nuts, but power volatility increases the risk of spoilage. Microgrids power cold storage with solar, storage, and generators to deliver multi-megawatt reliability. One nut producer avoids thousands in losses per outage, with quick ROI from efficiency.
Community-Scale: In Gonzalez, agricultural and industrial businesses are utilizing a microgrid, ensuring 99% uptime and economic stability.
For businesses looking to secure predictable energy costs for the next 15-20 years, the time to act is now. A 30% federal tax credit for microgrid installations is set to expire next year, and the current 100% first-year expensing option allows you to achieve the lowest possible cost for your system. By locking in your microgrid investment before the end of 2025, you can maximize these financial incentives, ensuring long-term savings and protection against rising utility rates.
Significant savings and increased resilience have made microgrids a no-brainer for many California businesses. Are you ready for yours to be among them?
With over 20 years of experience taking care of California’s businesses, our team at JKB Energy makes energy management simple and tailors solutions to your needs – like solar-battery hybrids for farms or advanced storage for C&I companies. We’re your partner from the initial call through completing installation, and can even offer flexible financing options to get you started with no upfront cost.
Lock in lower bills, protect from costly outages, and future-proof your energy strategy. Call us at (209) 668-5303 to start taking back control of your energy.