New client in Kansas City ? actually across the state line in Missouri where cannabis is now legal. Indoor grow operation, Evergy commercial account. Demand is enormous: 1,200 kW from grow lights, HVAC, dehumidification, and irrigation pumps. Demand charges are $14,400 per month. The facility runs 18/6 light cycles which means demand swings dramatically between light-on and light-off periods. The 18-hour peak sets the demand and the 6-hour off period is wasted from a load factor perspective.
Demand charges on marijuana grow operations ? emerging audit niche
Thomas ? cannabis grows are interesting from a demand perspective because the light cycle creates a built-in demand profile that cant be changed without affecting plant biology. But many grows run all rooms on the same light schedule. Staggering light cycles across different grow rooms ? Room A lights on at 6am, Room B at 10am, Room C at 2pm ? flattens the overall demand profile and reduces peak by 25-40% depending on the number of rooms.
Robert ? this facility has 4 grow rooms all on the same 6am-midnight light schedule. The entire lighting load ? 800 kW ? hits simultaneously at 6am every day. If we stagger to 4 rooms starting 4 hours apart, maximum simultaneous lighting demand drops from 800 kW to 400 kW. Thats 400 kW of demand reduction at $12 per kW ? $4,800 per month or $57,600 annually.
Thomas ? have the growers confirmed the light schedule stagger is horticulturally acceptable? Different light schedules mean different rooms are at different growth stages, which can complicate harvest scheduling and climate control. Some cultivation directors resist staggering because it makes workflow more complex even though the energy savings are clear.
Cannabis grow demand auditing is booming in Texas where hemp cultivation is legal. AEP commercial accounts for indoor hemp grows have the same demand profile as cannabis. One angle specific to grows: LED grow lights use 40-50% less power than HPS lights for equivalent PAR output. A grow that switches from HPS to LED reduces demand by 350-500 kW for a large facility. The demand charge savings alone often pay for the LED conversion in 18 months.
Robert ? stagger was approved by the cultivation director with a 6-hour offset between rooms. Implemented in January. February demand dropped from 1,180 kW to 780 kW. Actual savings tracking at $4,600 per month. The cultivation workflow adjusted within two weeks. Combined with LED conversion planning the total demand reduction package will exceed $80,000 annually. Cannabis grows are the highest demand-per-square-foot commercial accounts Ive ever audited.
One caution for auditors considering cannabis clients: check your state laws regarding professional services to cannabis businesses. Some states restrict financial services, and depending on how your audit engagement is structured, there may be compliance considerations around banking and payment. Federal illegality creates complications even in legal states. Get legal advice before signing cannabis clients.