The cost is contingent on the type of hydroponic system and the size of the growing area. It’s best to do further research before going too deep as costs could range from $1,000 for a small in-home system, to $100,000 for an indoor farm set up.
Administrative expenses: $50,000
Security and alarm system: $45,000
Temperature Control and Ventilation
In growing marijuana outdoors, the average cost is around $10-$17 per square foot, while greenhouse and combination grows cost an average of $50 per square foot.
New cultivators often forget about the licensing and legal costs for starting their marijuana growing facility. So you absolutely need to include this in your budget projections. These costs vary wildly depending on your location, so you’ve really got to know and understand the local laws and regulations for your region. For example, in Colorado, a marijuana cultivation license costs are $4,000, while in California, the annual fees for a “medium indoor” grow average $78,000.
Licensing & Legal
The cost of CO2 burners, tanks, and regulator kits may range from over $600 up to $2,000.
Legal fees and licensing: $55,000
Sales are about 1,400 lbs. per year:
Indoor cultivators produce year-round and can generate between 1 and 12 harvests per year. Main indoor cons include:.1478 kWh x 1,440 hours x 145 kW = $30,870
However, one thing that’s very important to remember when doing any estimations is that although your grow light may account for a lot of your electricity bill, fans and pumps and other things in your grow room also take electricity. These other items cost 3/4 as much electricity as the grow light. It will be plus about $23,150.
We offer The Cannabis Cultivation Financial Model which is a fully-functioning Excel financial model that uses a mix of assumptions to estimate cannabis yields, all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into years for an easy view into the various time periods.
Good lights are one of the most important factors when growing cannabis indoors. You can achieve yields of around 1.3-1.5 gram per watt of light.
Direct expenses include electricity, water, labor and packaging costs.
Warehouse 7,700 sq.ft. for about 1,000 plants with estimated yield of 350 lbs., 4 harvests a year.
So, total electricity costs will be about $55,000. Water costs will be no more than $700.
Cannabis Cultivation Business Setup, sample
Lets try to calculate how much electricity does it take to grow cannabis indoors for our scenario:
Total = $830,000.