Based on the benefits controlled environment growers are experiencing with LED grow lights, a return on investment (ROI) analysis could help you decide how quickly the payback would be for your operation.
As LED grow lights continue to become more affordable, an increasing number of greenhouse growers and vertical farmers are considering whether the lights would benefit their production systems. Add to this the testimonials of growers who have installed LEDs and the positive results they’ve gotten with commercial horticultural crops has caused more growers to look at the efficiencies these lights have to offer.
Comparing investment options
“The information on return on investment (ROI) for LED grow lights would have application to any type of equipment growers would be looking to purchase,” said Nathan Farner, president and CEO at North Ridge Solutions Inc. in Dallas, Texas, who is an adviser to Hort Americas. “Growers would be using a business case modeling approach to determine full project costs of various solutions and to understand what it takes to implement those solutions.
“Comparing the savings or increased revenue related to these investments would enable growers to say which option or scenario makes the most sense for their operations. Growers would compare their options and determine how long it would take to recoup their investment. Whether it is installing LED lights or some other capital infrastructure for a greenhouse, this ROI analysis would apply.”