LED industry likely to grow as more states liberalize marijuana laws

by Talk Business & Politics staff ([email protected]) 94 views 

The Natural State joined with California, Nevada, Massachusetts, Florida, and North Dakota in approving a combination of recreational and medical marijuana initiatives, causing increased demand that now has Rhode Island-based indoor LED lamp manufacturer Lighting Science expecting heavy growth.

In a post-election press release, the company cited Arkansas and others as targets for its VividGro product after reporting a 100% increase in sales over the last year alone, adding that the “cannabis industry is anticipated to jump from $6 billion to $50 billion by 2026.”

“The increased demand on energy consumption in pro-cannabis territories is expected to skyrocket, continuing the trend towards LED ‘grow light’ solutions that curb energy consumption and reduce energy costs to growers,” the company stated. “Lighting Science’s patented VividGro LED lamp is proven to increase yields by up to 30% while using 45% less energy.

Since its introduction in 2015, VividGro has been named one of the Top 5 Lighting Products by Marijuana Business Daily. With the successful ballot initiatives to legalize recreational and medical use of marijuana, Arkansas could prove to be a prime market, the company noted.

“Cannabis is one of the most energy-intensive industries in the world,” said Pete Rumsey, Executive Vice President of Business Development at Lighting Science. “Statistics show that 1% of all electricity used in the United States today is used by indoor marijuana growers, to the tune of almost $6 billion annually. As the cannabis industry continues to mature, grow facilities are increasingly turning to LEDs to reduce energy costs and boost profits.”

Cannabis growth is typically fueled by high-pressure sodium (HPS) lighting, a more energy intensive and expensive form of lighting, according to Ralph Sherman, a local grower of medical grade marijuana in Oregon. “We found that standard HPS lights were really cutting into our profits. We literally couldn’t afford to keep the lights on. By switching to LEDs we were able to cut our energy costs, increase plant yields and even increase THC levels, which increased the value of the product by 5 times.”

In addition to being a financial concern, Sherman says HPS can present a negative impact on the local grid. “We see PGE, the local energy authority, struggling to meet the high demand. It’s causing real problems. It’s nice to find a solution that is environmentally innovative and that also helps our bottom line.”

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