Interest and growth in controlled environment agriculture (CEA) is at an all-time high. Greenhouse ventures are alluring – and rightfully so – as we see ever-increasing pressures and challenges to existing supplies of field-grown produce. However, producing local, sustainable and pesticide-free food using hydroponics doesn’t necessarily translate into a profitable venture. For a facility to be truly sustainable, it can’t just be based on ideological concepts; it also needs to be economically sustainable to generate revenue. Turning a profit in this industry takes careful planning and specific expertise, as there are calculable equations to determine a project’s viability based on the initial cost, production expenses and productivity potential. Without proper guidance, these expenses, along with relatively low profit margins on produce, can be significant barriers to creating an attractive return on investment.
Energy costs in controlled environment agriculture are substantial, and maintaining optimal environmental conditions with regard to temperature, humidity and lighting, particularly when relying exclusively on artificial light for photosynthesis, is one of the largest expenses in a CEA facility. While photosynthetically active radiation, or PAR, is generously provided by the sun, artificial light is energy-intensive and costly. Converting electrical energy into light that is usable by plants produces a significant amount of heat byproduct, which then requires even more energy to mitigate with cooling systems. But wait, your climate-energy usage isn’t finished yet, because the process of growing plants increases humidity levels, which must be properly managed in order to maintain desirable growth rates and prevent serious problems with moisture-loving plant pathogens like mildew and botrytis. In summary, make sure you are performing your due diligence before deciding to use artificial light exclusively to cultivate crops. Wasteful energy practices often result in failed business ventures, not to mention a negative impact on the environment.