The cannabis industry starts and beings with cultivation. Cannabis is a plant that requires energy in the form of sunlight to grow. The value of cannabis is dependent on what we do it with and how it is grown. As this value gets better understood, the cannabis industry has grown like weeds. Now becoming an intricate supply chain employing growers, distributors, retailers, and initiatives.
All businesses require electricity to run, significantly marijuana grow operations. Regardless of how marijuana is grown, it requires electricity to run. Marijuana grown indoors utilizes natural light, providing significantly reduced electricity costs for growers. The primary area that they need electricity is for irrigation.
Growing marijuana indoors requires artificial lighting and the use of air condition and dehumidification systems. An indoor set up mimics the ideal weather for growth. At the same time, it is maintaining full control over outside forces like bad weather and bugs. However, this requires high upfront costs, including the building, equipment, water, and electricity. Typically, the electricity expense is often the largest single expenditure on an indoor grower's balance sheet.
This article looks at why onsite solar is an excellent pairing for cannabis growers and the cannabis industry.
The most crucial reason for growers to consider going solar is to increase their margin. By adding a solar energy system to a grow operation, you can save a considerable amount of money on electricity costs. You can offset the energy required to irrigate the plans, power the fans, and maintain the indoor lights. The more electricity you use, the more expensive it quickly becomes. Solar energy can provide predictable energy costs and act as a hedge against the continually rising electricity costs.
As the industry grows, larger, well-funded cannabis companies will drive down costs with their volume discounts. As any company in the cannabis industry is focused on growing, you need to ensure you can keep your price competitive while maintaining your margin. Reduce your grow operation's most significant expense by installing a solar energy system. The larger your electricity costs, the better the overall ROI. This is why energy needs to be a part of every cannabis company's strategy.
Power outages are one of the easiest ways to destroy an indoor grow operation. With how precise everything has to be with an indoor operation, if you were to lose power for even a few seconds, your entire crop would be ruined. That is why even a diesel generator isn't a great backup option for grow operations. Cannabis growers have now started to shift towards solar panels and battery backup systems to protect their crops from power outages.
Many cannabis consumers care about the environment. The product that they enjoy is the natural plant from the earth. Marketing your cannabis company based on renewable energy, can be a great way to promote your cannabis brand. Marketing your cannabis company can be difficult, but having a cornerstone of your company built on sustainability can impact both shareholders and consumers. Their core demographic is those that are interested in purchasing from companies aligned with their personal views. Solar energy is appealing because they help address a top concern for the younger generation: climate change and our reliance on fossil fuels. Cannabis stores have even started to install carports and EV chargers to increase their foot traffic.
California utility companies like San Diego Gas & Electric (SDG&E), Southern California Edison (SCE), Pacific Gas & Electric (PG&E) are recognizing the additional strain on the grid caused by indoor cannabis growers. This will lead to more blackouts. A Portland-Oregon based utility company associated 7 (seven) blackouts to cannabis farms.
Due to the cannabis industry's impact on the grid, utility companies and local and state governments are starting to updating policies to reduce their usage from increasing the electricity tariffs, paying into an energy offset fund, and requiring renewable energy investments. In Arcata, California, a ballot was passed in 2012 that puts a 45% tax on homes that use more than 600% of the baseline consumption for that avg type of home. Don't wait until new regulations are put into place. There is no better time to address your firm's energy expense. The 26% Federal Solar Tax Credit has been extended, and electricity costs are only going up.
Reduce costs, protect your crop from power outages, and help you market your business. As the marijuana industry continues to grow, the demand on the grid will only increase. This will lead to more power outages that will damage your entire crop. Call Forme Solar today at 714-694-2262 to discuss why renewable energy should be part of your cannabis company's business plan.