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In 2012, before any state legalized it, indoor cannabis cultivation was estimated to consume 1% of all electricity consumed in the United States. This figure has grown like wildfire, creating an opportunity for solar energy to decarbonize operations.
Indoor cannabis growing operations use a staggering amount of electricity, requiring high-powered lighting, heating and cooling, ventilation, water pumping, and much more.
Back in 2012, before cannabis cultivation was legalized, the Lawrence Berkeley National Laboratory estimated that 1% of the electricity consumed in the United States was diverted to indoor cannabis growing operations.
Since then, nearly half of states have legalized marijuana. Industry researcher Brightfield Group estimates that the industry had $31.8 billion in annual sales in 2023, and that figure is expected to grow to $50.7 billion in 2028.
Today, fossil fuels still account for about 60% of electricity generation in the United States, according to the Energy Information Administration (EIA). According to the Northwest Energy and Conservation Council (NPCC), one pound (0.45 kilos) of marijuana requires between 2,000 and 3,000 kWh of electrical consumption. For context, the average American household consumes about 900 kWh of electricity per month, according to the EIA.
This involves a huge amount of greenhouse gas emissions to produce cannabis. Although the sector could reduce emissions by increasing outdoor production or using more passive growing conditions such as greenhouses, the qualitative and quantitative advantages of indoor growing leave little incentive for investors in large farms to radically change their operations.
This creates an opportunity for the solar industry to step in as a partner to cannabis growers, helping to reduce emissions, lower electricity costs, and create a competitive marketing advantage for climate-conscious marijuana consumers.
A grower and processor, Bright Green Corporation, took advantage of this opportunity and invested in a 102 MW solar project to power its new $250 million expansion project in Albuquerque, New Mexico. Maxeon Solar Technologies is supplying the solar panels for the project, while Baker Tilly is leading construction.
Currently, the cannabis plant uses natural gas and oil to produce electricity. The company will now install three 40 MW electric boilers and feed them with the solar installation, the construction of which is expected to take around 30 months. Bright Green Energy said the cost savings over the equipments 30-year lifespan are expected to save the company “hundreds of millions of dollars.”
“This energy source will reduce and solve our significant heating and electricity costs annually. The future growth of this company depends largely on long-term innovation and efficiency,” said Lynn Stockwell, founder of Bright Green Corporation. “The uncertainty of long-term costs and supply-and-demand pricing of traditional fossil fuels for this type of megafactory versus clean energy from the sun advances the economics and ethics of the company.” ”. |
