As Cannabis Business Times gears up for the publication of its next State of Cannabis Lighting Survey, it's well worth a closer look at last year's findings. Buried within this industry-wide survey are major takeaways for cannabis cultivators who may just now be in the facility design phase, as well as those facilities looking to upgrade.
The (semi) annual Cannabis Business Times Survey on Lighting is your inside look at where grow lights are headed. It can show us how others are succeeding and what new technologies are powering today's grow rooms and greenhouses.
So, without further ado, here are the key findings from the 2023 State of Lighting Market Report.
Across the board, producers overwhelmingly reported switching from conventional grow lights to LED fixtures in both their veg and flower rooms. The 2023 survey shows a 55 percent increase from where the industry stood less than a decade ago.
In veg rooms, 76 percent of growers indicated they used LED grow lights. In comparison, only 15 percent said high-pressure sodium lights and 16 percent reported metal halide. The trend toward LED was similar for flowering, where only 31 percent of cultivators used HPS lighting, but an incredible 73 percent said LED.
What's more, within this dwindling demographic of commercial growers stuck with traditional lighting fixtures, more than half already had plans (or were seriously considering) to switch to LED grow lights in the near future.
For almost as long as cannabis has been an indoor crop, growers have focused on installing lighting with the greatest intensity. The argument has always been that the higher the intensity, the better the final harvest. Even in 2022, light intensity continued to drive significant decision-making for grow light selection.
But in 2023, things shifted. Instead of intensity, 48 percent of survey respondents cited energy efficiency as driving lighting decisions. Other top considerations included price, light spectrum, and that it “must be LED.”
This may not be surprising, considering that in 2021, 2022, and now 2023, the top lighting challenge cited across the board has been managing energy costs. This is true for both indoor facilities and greenhouses. If lighting costs are eating up the operational budget, it only makes sense that energy efficiency will gradually become the top priority.
According to the report, more commercial growers than ever are submitting for lighting rebates and other incentives—and importantly, receiving them. In 2023, 23 percent of indoor and greenhouse respondents said they had applied for and received a rebate. Only five percent said they had applied but were not successful.
But this still leaves a lot of money on the table for the more than 50 percent of cultivators who haven’t tried at all. Seemingly, a full third of participants were not aware of these incentives.
For the uninitiated, the world of LED lighting rebates and incentives is full of organizations, including OpenEI, EnergyStar and the Database for State Incentives for Renewables and Efficiency (DSIRE), which offer searchable databases of potential options. Before you sign a contract for your delivery of LED grow lights, you'll want to take the time to find any and all rebates that would apply in your local jurisdiction.
For added assistance, TSRgrow partners with clients to maximize energy rebates and financial incentives for LED lighting. We ensure you receive the highest possible returns by leveraging our expertise in navigating utility programs.
How much can you save? In New Jersey, our advanced LED lighting solutions, featuring distributed system controls and remote power capabilities, helped our clients secure incentives as high as 60 to 75 percent off the investment cost.
The nature of the US market and the move toward vertical growing has meant that canopy square footage is gradually increasing across the country. According to insights from 2023’s State of Lighting, “The commercial median total plant canopy increase[d] to 19,370 square feet.” This is compared to just 14,770 square feet in 2022.
As these numbers show, there are some pretty large indoor cultivators out there now, with 26 percent of survey respondents saying they managed more than 50,000 square feet of plant canopy. At the other end of the spectrum, only 16 percent reported managing a micro grow with less than 1,000 square feet of plants.
Part of this increase is likely due to the changing landscape of facilities, with more growers stacking plants on top of each other in vertical systems. Whether that's just two tiers or more, the number of vertical growers has increased by nine points since 2017.
Ultimately, regardless of price, energy efficiency, or lighting intensity concerns, the end goal is resoundingly crop quality (62 percent). Yield surprisingly comes in a distant second, reported by just 16 percent of respondents.
If we extrapolate a bit from this statistic, this emphasis on crop quality may be because markets are currently flooded with low-quality flower. One of the only ways to stand out in today’s cannabis sector is to produce a top-tier, high-quality product.
Thankfully, with LED lighting now more affordable and advanced than ever, this is entirely possible—without breaking the budget or risking a decade of profits just to get a return on investment from LEDs.
If you are one of the indoor commercial cultivators still locked into an HID system or a new producer just launching into the design phase of your business, it's time to start a conversation with TSRgrow.
Our advanced LED grow lighting solutions, backed by a facility-wide suite of integrated technologies, help producers grow better flower at a lower cost per pound for better profitability, even in today's market.
Just look at what is possible with TSRgrow:
*These estimates are based on a 20,000 sq. ft cultivation scenario
Is it time to evolve your indoor or greenhouse lighting strategy? Contact TSRgrow today to discover how our advanced LED lighting solutions can enhance your cultivation. Whether you aim to cut energy costs, improve crop quality, or expand production, TSRgrow provides the technology and support you need.