California cannabis is the perfect case study for the rest of the country. We’ve made ample note of the out energy demands of most indoor cannabis facilities. In the years ahead, regulators will take a renewed look at cannabis companies, and it won’t be about legalizing weed. It will be about the industry’s energy consumption.
Cannabis energy needs have been newsworthy across the country over the past two years, including raising issues in states like Colorado and Michigan. As more states legalize both medical and recreational cannabis problems, its energy impact, too, will spread.
California, to its credit, is getting ahead of the problem. The state is critical in terms of economic might, too. It’s the United States’ largest economic driver at over $3.2 trillion per year, and if it were a country, it would rank as the fifth-largest in the world behind Germany and just ahead of India. That spending power has certainly touched its cannabis industry. Spending hit $4.4 billion in 2020, bringing in well over $110 million in tax revenue for the state in a year that demanded hundreds of millions in COVID-19 relief.
Last month, the California Energy Commission recommended all indoor facilities adopt LED fixtures by 2023. The effort is intended to rapidly replace lower-quality, higher-emission traditional metal halide or high-pressure sodium bulbs. LED offers as much as a 75% energy savings, which means that initial investment is quickly offset by longer-term savings.
LED Lights For Cannabis
While there has been some backlash from growers about that initial investment, it’s important to remember that long-term benefits won’t just save businesses. Switching to LED fixtures in the cannabis industry is a part of California’s dedicated efforts to cut greenhouse gas emissions by 40% from 1990 levels. It’s an ambitious plan that includes public and private investment for renewable energy, energy storage, and implementing new regulations to introduce more energy-efficient efforts in residential, commercial, agricultural, and industrial settings.
We’re working with growers to bring energy-saving practices to the industry now to help these facilities scale quickly and responsibly. Ready to learn more? Contact Keen today to learn how we can implement energy-efficient practices and technology for your business.