California Cannabis Goes LED

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. Continue reading “California Cannabis Goes LED”

SAFE Banking Act Finds New Life In Stimulus Bill

The news has been non-stop for months now, and that ever-rushing stream of coronavirus updates include big news for cannabis companies. 

Weeks ago, Congress passed the CARES Act, just one part of what looks to be a series of stimulus bills designed to save and, when the time is right, jumpstart the economy in the hopes of avoiding a long-term recession. Those financial fears are well-founded, with industries from hospitality to manufacturing facing months of uncertainty. 

Cannabis growers, however, received none of that financial support. With marijuana classed as a Schedule-I drug, the industry is essentially barred from receiving federal money, no matter how much that support might be necessary in an environment that has seen 36.6 million people lose their jobs since early March. It’s an ironic situation. Just as many states have deemed cannabis growers and retailers as essential businesses, those same companies aren’t allowed to receive loans. 

The next round of stimulus, however, might just have some good news tucked into the folds. Last fall, the House of Representatives passed the SAFE Banking Act by a comfortable vote, only to see the bill tossed onto a heap of measures awaiting the elusive attention of an unproductive Senate. In the process of drafting the next stimulus package, however, the House has revived much of the language from the SAFE Banking Act and put it into the next round of legislation, which is rumored to be around 1,800 pages long. 

In the majority of states across the country, cannabis companies face the same challenges as every other small business but without the necessary federal support during these trying times. Most experts believe it may be a long shot to expect the cannabis-related language to survive cuts on the Senate floor, but the persistence of the House and the acknowledgment of just how important the industry is for the overall economy going forward is a good sign. 

Cannabis is here to stay, and having fair, reliable access to financial services is going to be a piece of the puzzle that completes the picture. 

How has your cannabis company fared during the pandemic? Let us know; we’re here to help!

cannabis energy electrical

1,250%: The Key Number Cannabis Companies Need To Know

cannabis energy electrical

We’ve made the pun plenty of times, but the reality is simply too strong to ignore. Cannabis is a growing industry, and companies across the United States are learning that their energy news isn’t just substantial, but often prohibitive. 

As big as cannabis is right now, we’re only scratching the surface of its true potential. Experts predict it to be a $47 billion industry by 2025. At the start of 2020, recreational marijuana use is legal in 11 states, while 33 states have medical marijuana laws firmly on the books. Recent local and state elections, too, indicate that more legalization is on the way, and the support of politicians at the federal level points to nation-wide legalization sooner rather than later. 

That astronomical growth comes in spite of many hurdles placed in front of young businesses. From inconsistent and changing regulations from county-to-county and state-to-state to variable access to investment, to supply chain and distribution issues, it hasn’t been smooth sailing for many growers. Perhaps one of the biggest challenges is energy. 

The electrical impact of marijuana cultivation is massive. Producing one pound of cannabis produces requires roughly 2,000 kWh, which is the equivalent of two and a half months of energy consumption by a normal household. That’s big. Multiply that to industrial-levels of production in facilities that can fill thousands of square feet and you can begin to see just how much strain cannabis could put on the grid. In fact, marijuana caused seven blackouts in California alone back in 2015. 

The demand is high now, but it’s only expected to grow. Canada, for example, expects cannabis power consumption to increase by 1,250% between 2020 and 2024. That would make cannabis production alone a total of 1% of the country’s entire energy market. 

Not only is it massive, but the source of that huge energy draw is also primarily fossil fuels. With a rise in demand will come a rise in pollution just as the world looks to drastically reduce its carbon footprint to fight climate change. By waiting for governments to shift grid-scale electrical production to renewable sources, the world might be putting a nail in its own coffin. 

Instead, growers are investing in themselves to incorporate renewable energy created from wind and solar, as well as integrated energy storage systems to offer flexibility. Retrofitting isn’t a viable option; many growers say the expense of trying to work with older lighting and irrigation systems isn’t cost-effective, and replacing the whole set-up makes more financial sense. 

Lighting is a huge element to both a healthy crop and to energy efficiency. With the switch flipped on between 18 and 20 hours a day, light fixtures account for approximately 70% of electricity consumption. We’ve been working with growers to create smart, dynamic systems that use the most efficient materials and intelligent automation to control climate. If over two-thirds of consumption comes from a single source, it’s where we can make the biggest difference. 

We’re working with growers across the state and around the country to implement the sort of systems that will keep companies competitive, sustainable, and comfortably within the patchwork of local guidelines. Getting started? Start with a call to Keen Technical Solutions.