Growth of Solar Energy in the Cannabis Industry
The cannabis industry has rapidly expanded to more states legalizing the product for medical and recreational use, including Missouri, which legalized the use of medical cannabis in 2018. In 2020, nationwide sales of cannabis increased by 67%, and the industry is currently worth $61 billion. Although cultivating cannabis can be a lucrative business, increasing competition means that growers have to get creative about strategy. For many, that means turning to solar energy systems to power their cannabis farms.
How Can Solar Power Be Used for Cannabis?
In a tight market, one of the primary ways to stand out is to offer a superior product. However, the highest quality cannabis is cultivated indoors and is costly to maintain. Cultivators must control temperature, humidity, and airflow to keep plants growing optimally. Without the light of the sun, growers rely on sophisticated, high-powered lights to maximize growth, and they consume an immense amount of power. Cultivators spend about $6 billion on energy each year — the approximate equivalent of what the federal government uses to power all its facilities.
This level of electricity consumption is unsustainable from a financial point of view and is straining electric grids all over the country. For these reasons, forward-thinking cultivators are turning to alternative sources of energy like solar.
Benefits of Solar in Cannabis & Hemp Agriculture
The single most significant driver for the growth of solar energy in the cannabis industry is saving on the cost of electricity as it continues to rise. However, there are three other excellent reasons to make the switch.
- Tax incentives: The federal government offers a solar investment tax credit, currently 26% of the cost of a solar system placed in service during the tax year. This is set to increase with the passing of the Inflation Reduction Act in 2022.
- Marketability: Consumers care more than ever about the sustainability of the products they buy. Being able to say your crop is grown with clean energy can be a major marketing advantage.
- Reliability: When you rely solely on the grid, your facilities are vulnerable to unexpected power outages. A solar energy system with energy storage and backup power services allows you to own your energy and ensure reliable power regardless of the state of the grid.
With the financial and marketing benefits solar energy brings, it’s easy to see why forward-thinkers in the industry are pivoting toward partial or total solar energy systems.
Start Your Energy Evolution With Solera
If you’re one of the business owners getting into the cannabis industry after Missouri’s 2018 legalization of medical cannabis, the time is right to take advantage of solar power to beat the competition. Solera Energy can install a commercial solar energy system that meets your power demands and provides independence from the grid.
Call Solera Energy at (855) 650-7404 to find out more, or contact us with your questions online to get started.