Technology Tuesdays | Brewing Innovation: The Evolution of BEER from IDEEA 365

Craft beer has always been about more than what’s in the glass. It’s culture. Community. Craft. But behind every hazy IPA and barrel-aged stout is a process that’s surprisingly energy-intensive—one that depends on boilers, chillers, steam, and systems working in near-perfect harmony. Brewing, as it turns out, is as much an engineering feat as it is an art form.

That’s where the Brewery Efficiency and Energy Recovery (BEER) Program comes in. Born from California’s Innovative Design for Energy Efficiency Applications (IDEEA 365) platform, BEER makes a compelling case for applying energy efficiency strategies on a craft-specific level. It’s not a generic rebate program with a beer label slapped on—it’s a targeted, thoughtfully engineered solution for a historically underserved market. And it’s delivering real results.

From Idea to Impact: The Role of IDEEA 365
First, some background. IDEEA 365 exists to bring light to new ideas that traditional utility programs don’t always reach. Rather than waiting for rigid funding cycles or fitting customers into prebuilt program molds, IDEEA 365 allows third-party implementers to submit innovative program concepts year-round, especially those designed for niche or overlooked customer segments.

That’s exactly how BEER came to life.

Recognizing the energy intensity and operational complexity of craft breweries—and the lack of existing programs that truly served them—Frontier Energy proposed a sector-specific approach through IDEEA 365. The result: a program that incentivizes based on how breweries actually use energy.

Today, Frontier Energy is the third-party implementer of BEER for SoCalGas, and it stands as a model for how targeted design can unlock savings where more generalized programs fall short.

Why Breweries?
Breweries are, quite literally, built on heat. From mashing to boiling to cleaning to packaging, nearly every stage of the brewing process relies on thermal energy. On average, craft breweries use 50–66 kWh per barrel of beer produced. About 70% of that energy comes from natural gas, primarily for boiling, heating, and steam generation. The remaining 30% comes from electricity, which, while smaller in volume, often represents the majority of the total energy cost.

In California, the impact of that energy profile is amplified by scale. The state is home to roughly 1,000 craft breweries—more than any other state in the country—with a significant concentration in SoCalGas territory. That’s a dense ecosystem of fermenters, kettles, glycol chillers, steam systems, and packaging lines operating daily across the state.

Yet despite their size and energy intensity, craft breweries historically fell into what’s often called the “missing middle”: too small to qualify for industrial energy efficiency programs, and too complex for traditional commercial programs designed around lighting, HVAC, or water heating.

Most energy efficiency portfolios were built for offices, retail, and large manufacturing. They don’t take into account energy use driven by:

• Brewhouse heating

• Kettle boil

• Fermentation temperature control

• Glycol chilling systems

• Steam systems

• Canning and packaging lines

Layer on additional challenges—like the fact that many breweries rent their space, meaning landlords don’t see the utility bills and therefore lack incentive to invest—and it becomes clear why this sector remained underserved. Add in small, lean teams focused on survival and growth rather than energy modeling and rebate paperwork, and even well-intentioned efficiency projects often stayed on the wish list.

In short: breweries didn’t need another brochure. They needed a program designed around how beer actually gets made.

Enter BEER: A Program Built for Process
The BEER Program was designed specifically to meet breweries where they are—technically, operationally, and financially. We’ve covered the why, here’s the who, what, and how of its success.

Who?
Implementer: Frontier Energy, on behalf of SoCalGas

Eligible entities:

• Active SoCalGas commercial account in good standing

• Minimum brewing capacity of 30 barrels

• Proper California licensing

• Physical capability to install replacement equipment

• Willingness to participate in site visits, data collection, and verification activities

What?
Covered technologies include:

• Insulation

• Boiler upgrades

• Monitoring and control systems

• Economizers and heat recovery

• Combined heat and power (cogeneration)

• Absorption and engine-driven chillers

• Clean transportation solutions

 Incentives:

• Boiler upgrade: $5,000

• Carbon capture: $5,000

• Both: $10,000

How?
By focusing on brewery-specific processes, offering technical support, and streamlining participation, BEER makes it easier for small operators to act while doing what they do best: making great beer.

• Test: BEER intentionally targeted a high-energy-intensity, underserved customer segment. Rather than starting with assumptions about what breweries “should” need, the program considered how breweries actually operate.

• Prove: The program delivered measurable energy savings, validating that sector-specific design can outperform generic approaches. It demonstrated that small businesses with complex processes can and will engage when programs are tailored to their realities.

• Scale: Perhaps most importantly, BEER created a replicable model. The same structural challenges that affect breweries—process-driven energy use, thermal loads, rented spaces, limited staff—also affect other small industrial and commercial sectors, including: wineries, distilleries, bakeries, and/or food processing facilities

These industries share similar barriers and similar opportunities. BEER proves that with the right program architecture, the “missing middle” doesn’t have to stay missing.

Why This Matters
Energy efficiency programs often struggle with a fundamental tension: scale versus specificity. Broader programs reach many customers but may underperform in complex environments. Highly customized projects deliver results but can be resource-intensive and difficult to replicate.

BEER bridges that gap.

It shows that you can:

• Target a specific, high-impact sector

• Design around real operational needs

• Deliver measurable results

• And create a template that can be extended to other industries

…All without sacrificing program rigor, cost-effectiveness, or scalability.

In other words: BEER doesn’t just save energy—it evolves how energy efficiency programs are built.

A Toast to What’s Possible
Craft brewing has always thrived on innovation—new styles, new techniques, new interpretations of an ancient craft. BEER brings that same spirit to energy efficiency.

What started as an idea submitted through IDEEA 365 is now a working, scalable program delivering real-world impact across California’s brewing industry. It’s a reminder that the most effective solutions don’t come from forcing customers into existing frameworks—but from building frameworks around the customers themselves.

So here’s to better beer. Smarter energy. And programs designed with as much care as the products they support.