Start Smart, Grow Smart: Investing In Your Cannabis Facility

What’s the most expensive and wasteful investment to make? One you have to make twice. For marijuana growers, starting their sustainability and energy efficiency efforts the right way from the start is a key component to being competitive in an ever-tightening industry. 

The basic laws of supply and demand have played out in textbook fashion in the still young legal marijuana business. As more states enact legislation to legalize cannabis, supply us skyrocketed, causing prices to drop. And drop. And drop. The well-cushioned margins of Day One were nice, but enjoyed only by those firms already up and running. Today, many of those companies are feeling the pinch, and it’s not just from outside competition. These companies’ biggest battle comes from inside their facilities, where inefficient lighting and HVAC systems have kept production costs high and prices have slipped. 

Those firms are quickly implementing new, more efficient systems to battle the problems arising from lower prices. In an industry that sees so many factors and influences outside of their control, like legislation, banking restrictions, and limited licensing opportunities, production costs are often the one area firms can address head-on. 

As the old guard upgrade, newer producers have learned those same lessons and taken them to heart. Growers in the past 12-18 months quickly realized that the only smart way to address margin concerns over the long run is by making smart investments in fixtures and equipment right now. There are many lessons to learn for utilities, too. For instance, 4% of Denver’s energy demand comes from marijuana growers. With demand expected to more than double by 2023, both consumers and producers need to implement new ideas, new sources, and new standards to handle the load. 

We’re working with growers to make their facilities as energy efficient as possible, plugging in innovative techniques to make the most out of heat byproducts, recycle humidity, and make each light fixture do more with less. Technology learns and adapts, empowering business owners to take data in real-time and make better decisions in their energy usage and get the most out of each crop. 

Ready to grow? Let’s get after it!

Illinois Sets The Standard For Cannabis Regulations

Cannabis is an industry that’s only just beginning. Earlier this month, the state of Illinois put standards in place that will shape the cannabis industry for the Midwest and the rest of the country for decades to come. 

We’re living in extraordinary times. Cannabis is changing the country from medicine to production, with industrial giants and small-time growers all searching for some sense of direction. With states across the country passing legislation to allow legal adult use, the regulations have been relatively inconsistent. 

Illinois is one of those states. With their marijuana law taking action On January 1, 2020, they’ve passed some of the tightest cannabis production legislation in the country, detailed regulations in energy consumption, water, and other aspects of production that demands a high level of efficiency from Day One. 

There’s a lot at stake for the industry, and for the most part, cannabis growers are excited to take charge of their expansive energy footprint. A five thousand foot growing facility uses 66% more energy than the average US household. To offset that demand, Illinois is joining Massachusetts in passing strict energy regulations. These include:

  • A cap of 36 Watts per per square foot
  • Mandatory installation of automatic watering and irrigation systems
  • Mandatory use of DesignLights Consortium approved lighting fixtures
  • Limit water runoff to less than 20%
  • Specific high-efficiency HVAC equipment

The scale of Illinois’ cannabis industry is large and is expected to grow each year. Right now, they have 20 indoor facilities licensed for production, with a further 100 smaller producers with licenses to grow in facilities up to 5,000 square feet. 

One of the most important parts of the legislation is that the law requires producers to explain in detail exactly how each grower will meet the standards of the law. It’s a process that demands an intimate knowledge of the complex systems in place, and a field we feel uniquely situated to support businesses tackle. With these regulations regarded as the new standard, we expect to see similar laws passed across the country, and we’re ready to support businesses everywhere. 

Whether you’re looking to get started, upgrade your facility to meet regulations, or need help presenting your current HVAC to inspectors, we can help!