Best practices for keeping utility costs down for new cannabis dispensaries

A lot of us a starting a new business and setting up shop. Whether you are in a large metropolitan or rural area, utility costs are a reality you need to address. Fortunately, technology has advanced and you have more options than ever for keeping cost under control. New owners should consider how utility costs will affect the bottom line and make wise decisions to keep waste to a minimum provide investments that pay off in the long run. In this series, we will cover each type of cannabis business. This article covers dispensaries.

The largest utility cost for most dispensaries is heating, cooling, and lighting. Here are some tips for keeping bills to a minimum.

For the dispensary, focus on high-efficiency HVAC (heating, ventilating, and air-conditioning) systems and controls. There are several typical systems used in this type of business. A split system with a gas furnace or heat pump is typical for small spaces and is similar to the central air systems we have in our homes. Larger buildings have packaged rooftop units. If you plan to upgrade look at the SEER or IEER ratings on the unit. The higher the number the better. A popular system for the rooms is a mini-split HVAC system. Newer systems heat and cool spaces very efficiently, are quiet, and very efficient. Invest in wi-fi connected thermostats like the Nest or EcoBee. The devices allow you to turn the system up or down from your car, as well as schedule so the system is already open when you are open.

Lighting has a big effect on your store’s appearance and the trend of using LEDs has been going on for many years. LEDs used to be very expensive, but are now reasonably priced and properly selected will provide many years of service before needing replacement. A typical fluorescent light fixture in a commercial property consumes about 114 Watts. If runs 12 hours per day, seven days per week the cost to operate just one light is $60 at 12/cents per kWh. A typical LED fixture will cost about $25 to operate, saving you $35 per year EACH. Many utilities offer incentives or rebates so installing LEDs is usually a no-brainer if the operating hours are high.

When you select an LED, make sure you use a uniform color temperature. LEDs with a color temperature of 5000k can be harsh and blue. The lower the color temperature the warmer or more red the light appears. There are many highly qualified lighting businesses so look for good advice, service, and warranties. The cheapest may not be the best.

Lighting controls can be cost-effective. Why operate a light when it’s not needed. Use sensors to turn lights off.

   

Going green with solar panels is another option. It’s usually not practical to install enough panels to cover your entire electric cost. Solar has been dropping in cost, but do your homework. The payback can be longer depending on the incentives and rebates that are available.

If you are taking over an existing space, now is the time to upgrade. And don’t forget maintenance like changing filters and keeping equipment clean. Even great equipment can lose efficiency if you don’t keep up with maintenance.

If you have questions on energy feel free to shoot me a question to Jeff.kelley@kem-mo.com.

Kelley is the principal at Kelley Energy Management.