One of the most expensive investments as a licensed cannabis producer is the capital required for commercial LED lighting. It's not unheard of for lighting alone to cost $700,000 or more, depending on facility size.
This is why it's shocking to hear that only 23 percent of commercial indoor and greenhouse growers have applied for rebates and incentives on lighting. It's also shocking to hear about how much money producers leave on the table.
In New Jersey, the energy rebates on LED lighting have been especially notable. New Jersey has one of the most lucrative energy rebate and incentive programs in the country, with many cultivators seeing 75 percent returns from their LED lighting investments.
However, in New Jersey, the larger refunds will disappear at the end of this year.
New Jersey Rebates, by the Numbers
The TSRgrow team has helped many cultivators in the state design new advanced lighting systems, complete the Energy Rebate application, and get the biggest returns compared to other lighting companies.
Here are a few of the stories that TSRgrow has had in the state:
Hamilton Farms Cannabis (Millville, NJ)
Hamilton Farms worked with TSRgrow on facility lighting design and grow room control. Using the TSRgrow lighting system, they built out a two-tier veg room, a flower room, and a mother room complete with Remote Power and the GROWHub Software, giving Hamilton Farms tools for advanced cultivation. Ultimately, this system secured a six-figure rebate, covering 75 percent of their total LED costs.
Brutes Roots (Hammonton, NJ)
Brutes Roots, a cultivator and dispensary located in Hammonton, New Jersey, collaborated with TSRgrow to install advanced LED lighting in two veg rooms (each with two tiers of canopy), seven flower rooms, and two separate rooms of mother plants. They've incorporated GROWHub Software and the TSRgrow Remote Power Server solutions as well.
The lighting investment was initially $700,000, but with TSRgrow's assistance with New Jersey's Energy Rebate Program, they secured $500,000 in incentives.
What Is the New Jersey Clean Energy Rebate Program?
The New Jersey Energy Rebate Program has offered various incentives to help residents and businesses reduce energy consumption and equipment costs. Depending on their facility size and whether they are new builds or retrofits, growers have many avenues to pursue. There are layers within this program, but for example, let's break down what it can look like under the larger cultivators category.
To break it down even further, New Jersey has set prescriptive rebates for LED horticultural lighting:
For LED fixtures used in indoor grow facilities (>3,000 hours/year):
- $150 per fixture for LED fixtures <500 Watts
- $250 per fixture for LED fixtures ≥500 Watts
The main difference between TSRgrow LED lighting with Remote Power Servers is that TSRgrow can get a $750 rebate for a 4'x4' area vs. legacy on-fixture driver LED fixtures for a 4'x4' area for $150.00. That is a 3X rebate benefit for the customer using TSRgrow coupled with advanced technology and results.
*The above information should be used for informational purposes only. For more information, contact a TSRgrow team member or the New Jersey Clean Energy Program.
How New Jersey's Energy Rebates Work
Before launching into the application process for energy rebates covering new or updated LED grow lights, what do you need to know? As an initial introduction, here is how the process rolls out:
"Before you apply and long before purchase, reach out to the TSRgrow team as the first step," the TSRgrow team points out. "We've been through this process many times and have explicit experience with NJ's program."
"As you plan out your lighting systems, we can help you with the design process to maximize the potential program rebates."
Apply
The key to rebates, including in the state of New Jersey, is that most of them only work with pre-approval. That means you'll need to apply before you order your equipment. "The TSRgrow team will be able to facilitate the fine details at no cost to the customer, including specific application requirements like energy conversion standards, information on the micromoles per joule efficacy for converting electrons into photons, and confirmation of fixture DLC recognition."
Order Equipment
Although timelines are not guaranteed, the pre-approval process can be slow, sometimes taking 12 months or more. The goal is to submit the application before the end of the year (2024) and lock in the pre-approval amount for up to 12 months. The program will change in 2025 to a much lower rebate formula. Once you've received program pre-approval, it's time to place the order for your LED lighting and other interconnected systems with TSRgrow.
Rebates Paid Out
With lights installed, it's time to submit for the rebate payout. The good news? Unlike the approval process, rebates are typically paid 45 days after inspection.
Act Now To Maximize Your Rebate Potential in New Jersey
If you are one of the 56 percent of producers who have yet to explore energy rebates, TSRgrow believes that this is the time to apply. This is especially true if you are building in New Jersey, where the energy rebate program for LED lighting is advantageous, with the potential for substantial financial returns.
With the more enormous incentives disappearing at the end of 2024, TSRgrow says that this is the moment to lock in your LED lighting systems for the application process, even if you won't be ready to build out the facility well into 2025. Remember, the approval process can be long, and the deadline is quickly approaching.
For more information:
TSRgrow
[email protected]
www.tsrgrow.com