How N.J. is working to reduce energy costs for cannabis industry

The energy demands of indoor cannabis cultivation are substantial.

Lighting, climate control and irrigation systems consuming large amounts of electricity are just the start.

The manufacturing process can be energy-intensive, too, particularly when it involves extraction, processing and packaging.

The state is working to help.

State officials involved in the New Jersey Clean Energy Program said New Jersey is establishing itself as a leader in the clean energy sector by offering programs that help those within New Jersey save energy, money and the environment.

Implementing energy-efficient equipment and processes can lead to significant cost reductions and a smaller environmental footprint, state officials said. The key is leveraging NJCEP and utility programs, cultivators can implement energy-efficient technologies that reduce operational costs.

Officials said those looking to venture into the cannabis industry, particularly as Class 1 Cultivators or Class 2 Manufacturers, the state’s position on clean energy can offer substantial benefits.

NJCEP promotes energy efficiency and the use of clean, renewable sources of energy, including solar and wind. For cannabis cultivators and manufacturers, NJCEP’s energy efficiency programs offer dual benefits: reduced operational costs and a more sustainable business model. NJCEP’s financial incentive programs for new construction and gut-renovation projects can be particularly helpful for those in the cannabis industry.

Programs are available to address the whole building’s energy efficiency or a bundle of specific measures. In the coming year, the programs will merge into a single New Construction Program to simplify the process further. The largest savings are through the whole building options where simulated computer models for planned buildings allow their final design to perform better than a minimally code-compliant building.

The prescriptive program pathway provides the opportunity for fixed and savings-based incentives for selecting energy-efficient equipment for building systems in new construction and substantial renovation projects. For cannabis manufacturers, this includes custom projects that optimize energy use in their facilities. By taking advantage of these incentives, manufacturers can reduce their energy consumption, lower their utility bills and contribute to a cleaner environment.

Other programs available through NJCEP that may benefit cannabis business owners include the Large Energy Users Program, Commercial Energy and Water Benchmarking Program, and Combined Heat and Power/Fuel Cells Program. In addition, cannabis business owners can apply for financial incentives for prescriptive and/or custom energy efficiency measures from New Jersey’s public electric and gas utility companies.

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