033 - How Retrofitting and Rebates Can Transform Your Cannabis Facility

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• Podcast Title & Hosts: Cultivation Elevated, hosted by Michael Williamson and Anders Peterson.
• Episode Topic: Discussion on retrofitting cannabis cultivation facilities, energy rebates, and emerging markets for cannabis.
• Guest Speakers: Mitch Galton (Director of Business Development) and Brett Cherniack (VP of Sales) from Urban Gro, a company providing integrated design and engineering solutions for controlled environment agriculture (CEA) facilities.

Key Discussion Points:

• Urban Grow’s Services:
• Specializes in retrofitting existing facilities and energy-efficient solutions for cannabis cultivation and other CEA industries.
• Offers architectural design, cultivation system integration, and equipment commissioning.
• Retrofitting Cannabis Facilities:
• Challenges include assessing existing infrastructure (power, water, and space layout), especially in transitioning non-cannabis buildings.
• Planning is critical, focusing on utilities, space allocation, and goals before starting a project.
• Importance of ensuring proper infrastructure (HVAC, lighting) before retrofitting.
• Types of Retrofits:
• Existing cannabis facilities needing upgrades versus non-cannabis facilities being converted.
• Challenges with distressed assets, where companies failed, requiring complete overhauls.
• Converting single-level facilities to multi-tiered systems to increase canopy space but requiring significant HVAC and lighting upgrades.
• Building Selection for Retrofits:
• Important to consider zoning, local regulations, utility availability, and city support when selecting a building for a retrofit.
• Delays in power availability can derail timelines and budgets, sometimes taking up to 24 months to get proper utility infrastructure.
• Energy Rebates:
• Significant rebates available for upgrading lighting and HVAC systems, covering up to 100% of the costs in some cases.
• Utilities have become more knowledgeable about cannabis cultivation and offer tailored energy efficiency programs.
• Planning ahead for energy rebates can save a company substantial amounts, and waiting for rebate approvals (about 4 weeks) is strongly recommended before making purchases.
• New Cannabis Markets:
• Examples from new states like Alabama and Kentucky show the challenges of being the first to market, such as not having patients or customers yet.
• Importance of scaling cultivation in phases to match market demand and avoid overbuilding.
• Challenges in HVAC Rebates:
• HVAC rebates are more complex to calculate compared to lighting due to constant system usage in cannabis cultivation.
• Some states are developing more prescriptive rebate programs for dehumidifiers, a major part of HVAC systems in cultivation facilities.
• Closing Thoughts:
• Both Mitch and Brett emphasize the importance of detailed planning, especially when dealing with capital-intensive retrofits.
• Urban Gro’s team has extensive experience in cannabis, helping cultivators make smart decisions regarding retrofits, new facilities, and energy rebates.

ABOUT CULTIVATION ELEVATED:

If you are a grower or owner looking to optimize your existing or new cultivation facility or anyone looking to cultivate more in less space, then this is the show for you. Each week, join Host Michael Williamson as he travels across the country, to explore the world of vertical farming and the future of cannabis and food production through his conversations with leading industry operators, growers and executives who are demonstrating success and resilience as growers and cultivators. Each episode provides stories and key insights that will inspire and show you first-hand, how each of these companies have overcome challenges, and found their own path to success. Brought to you by Pipp Horticulture.

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