Is Your Business Ready for CA Electrification Mandates?
California’s ambitious push towards electrification is creating waves for businesses across the state. While this move towards electrification may help with sustainability initiatives, it’s left many businesses scrambling to find practical solutions to keep up with the mandates.
Not only are businesses facing the pressure of preparing for these changes, but state utilities lack the existing infrastructure to manage the increase in grid demand. Especially in rural areas where businesses are already struggling to secure reliable access to the grid, these infrastructure shortcomings and escalating demand charges only add to the challenge.
So, what can you do to best prepare and get your business ahead of the curve? Let’s break it down:
Key Electrification Details:
Statewide goal for overall carbon neutrality by 2045.
100% Zero-Emission Vehicles (ZEVs) by 2035 – including personal vehicles and commercial fleets.
Personal: all new passenger vehicles must be sold zero-emission by 2035.
Commercial: businesses with 50 or more vehicles will need to transition to zero-emission fleets by 2035. Fleet electrification will include vehicles such as tractors, forklifts, delivery trucks, etc.
State policies aim to increase fuel costs to nudge businesses away from traditional gas-powered fleets.
Impact on Your Business:
Finding solutions to these electrification mandates has already strained many companies’ operations and budgets. The reality of fleet electrification forces companies to look at the financial burden of upgrading much of their equipment. Not only will this inflict upfront costs and affect operations, but the need to charge your fleet during the workday will cause forced downtime and increased demand charges.
Combined with the state’s current infrastructure limits, this poses a real issue for California businesses. Explained well in a Valley Ag Voice article, the historical track record of new substation construction is nowhere near enough to keep up with the increased demand that these new mandates will cause. California has a long way to go if we want to have the ability to support all new zero-emission fleets.
How You Can Get Ahead:
These upcoming mandates may seem overwhelming, but there are ways that you can stay ahead of the curve and set your business up for success. To help mitigate the operational and financial burden of electrification, consider self-generation. Battery Energy Storage Systems (BESS) are one strategic option for getting the upper hand.
The Benefit of Battery Energy Storage Systems (BESS):
BESS offer a practical and immediate solution to sidestep many of the challenges that electrification mandates bring. It allows YOU to take control of your energy needs and gain independence from the grid. Here’s how:
On demand charging: Instead of relying on the grid for expensive charging during the day, your battery will be storing energy and can deliver it on demand, right when you need it. BESS act like a reservoir, storing a commodity (in this case, energy) when there is excess, to use in times of need. No need to worry about limited grid capacity or costly demand charges.
Energy independence & resiliency: Having your own energy storage means that you and your company aren’t subject to the unpredictability of the grid. By reducing the peak power needed from the grid, you’re also reducing your operating costs. BESS ensure that your operations can run smoothly and consistently – even during peak demand periods and outages.
Boost your bottom line: The payback on BESS is better than it’s ever been. Prices have come down 80% over the past decade. Advancements in technology have now allowed batteries to offer an ROI of 4-6 years, similar to solar investments. Anything beyond payback is just funneling more money to your bottom line.
Most importantly, don’t leave addressing these electrification changes until the deadline is right around the corner. Scrambling to find last-minute solutions is costly, and today’s BESS market is better than ever. Taking action now helps your business thrive for years to come.
So, what’s next?
The best way to be proactive in protecting your business from external challenges is by looking to self-generation systems like solar and storage. If you are set up for independence and resiliency, the less negative impact you’ll feel from any upcoming legislative changes.
Your path to energy independence starts with a conversation. At JKB Energy, we’re here to help you find the best solution for your company’s unique needs, whether that’s a standalone energy storage system or integrating a solar + storage solution. We take the time to get to know your specific needs so we can recommend the system that is the most beneficial to your business.
Let’s get started. Call us at (209) 668-5303 to start with a free Energy Audit.