Energy Efficiency Gives New York Cannabis Growers a Win-Win in License Applications and Savings
New York cannabis growers have a great opportunity to incorporate energy efficiency in their operations. Not only is it a major factor the state considers when granting cultivator licenses, there are also many valuable utility rebates available which can put money in your pocket.
New York’s Budding Adult Use Cannabis Market
Although New York legalized recreational cannabis for adult use in March 2021, its rollout has been painstakingly slow. Since legalization, only seven licensed shops have opened their doors, which led to a rise of unlicensed sellers.
In an effort to counter this, New York regulators approved an additional 99 new provisional licenses for recreational cannabis dispensaries just last March. This presents a huge opportunity and new market for those involved in cultivation, as a New York cultivation license permits production and sale of cannabis to licensed entities in the state.
Last year, in anticipation of the boom in the adult-use cannabis market, Governor Kathy Hochul created a new Adult-Use Conditional Cultivator license. Whether you currently have an Adult-Use Conditional Cultivator license or are eagerly awaiting the next round of licensure, there are many requirements to be mindful of which can increase your chances to transition to a full Adult-Use Cultivator license.
Stringent Energy Efficiency Requirements
Within its requirements, New York places a major emphasis on energy usage. For example cultivators must:
- Document, implement, and maintain a sustainable energy use and conservation plan that addresses the sourcing and use of energy, and sets energy efficiency goals.
- Keep a record of their facility’s energy audit and Year 1 energy use.
- Use horticultural lighting fixtures with a reported Photosynthetic Photon Efficacy of no less than 1.9 μmol/J, and if less-efficient fixtures are already in use, cultivators must have a documented transition plan to more efficient lighting equipment.
According to Peter Ross with Foley Hoag, growers that incorporate these measures into their facilities may be more competitive when applying for a full Adult-Use Cultivator license. In fact, one of first criteria used by New York in determining future licensing decisions is the applicant’s performance in reducing greenhouse gas emissions through the use of energy efficient equipment.
Tapping Into Valuable Utility Rebate Programs
As an additional incentive to consider energy usage, many utilities offer rebates when purchasing or upgrading to more energy-efficient equipment. To name a few:
- New York State Electric & Gas Corporation offers up to $0.2/kWh saved or 90% of the project’s incremental cost.
- PSEG/Long Island Power Authority offers up to 70% of the project’s installed cost or $2,000,000.
- Central Hudson Gas and Electric Corporation offers up to $0.12/kWh saved or 75% of the project’s incremental cost.
- Rochester Gas & Electric Corporation offers up to $0.2/kWh saved or 90% of the project’s incremental cost.
- National Grid/Niagara Mohawk Power Corporation offers up to 50% of the project’s cost.
Climate Resources Group Can Help!
If you clicked into any of the links in the previous section, you will likely notice two similarities between these utility programs. You can get a lot of money by participating in these programs and these programs can be very confusing to fully understand.
Don’t worry, we’re here to help!
Check out our blog post from earlier this year titled, Five Reasons Smart Growers are Focusing on Energy Efficiency, to learn more about energy efficiency and its benefits.