Key Takeaways:
- Fluence’s eighth annual report, in collaboration with Cannabis Business Times, shows a high rate of LED adoption among cannabis growers.
- At least 70% of growers use LEDs for propagation, vegetation, or flowering.
- 66% of growers reported yields over 50 grams per square foot under LED lighting, an 11% increase from 2022.
- Growers prioritize crop quality over yield as the key factor for using LEDs.
- Despite the benefits, some growers hesitate to switch to LEDs due to ROI concerns, though many are not utilizing available rebates.
Fluence, a leader in energy-efficient LED lighting for commercial cannabis and food production, along with Cannabis Business Times, has released the eighth-annual “State of the Cannabis Lighting Market” report. The study continues to reflect a significant trend towards LED lighting adoption in the cannabis industry.
Yield and Quality Improvements
The report reveals that a consistent 70% of indoor and greenhouse cannabis operations with supplemental lighting have adopted LED technology. Notably, 66% of these growers have seen yields surpassing 50 grams per square foot, marking an 11% increase in yield from the previous year.
Focus on Crop Quality
The 2023 survey indicates a shift in grower priorities, with 62% citing crop quality as the primary reason for choosing LEDs, while yield considerations followed at 16%. This trend underscores the importance of product differentiation in an increasingly competitive market.
Economic and Operational Challenges
Steve Graves, Fluence’s senior vice president of strategy and product, emphasized the company’s commitment to supporting cultivators through these market shifts by promoting LED adoption and offering innovative lighting solutions to enhance yields and financial outcomes.
Rebate Program Underutilization
The report also highlights a gap in awareness and utilization of cost-saving measures. Over half of the respondents have not explored rebate programs, which have saved growers over $26 million through Fluence’s rebate initiatives.
Industry Evolution and Best Practices
Michelle Simakis, editor-in-chief of Cannabis Business Times, reflected on the industry’s rapid adaptation and innovation in lighting technology. The report’s historical data showcases the dramatic increase in LED adoption since the study’s inception in 2016, with nearly a 60 percentage point rise in both vegetation and flowering stages, and over 50 points in propagation.
Image provided by Fluence
