Other expenses that may have an impact on your grow are equipment having to do with security or controlling odor.
But these products are subject to high taxes and regulations that make packaging and distribution expensive.
It also allows you to explore growing techniques, genetics, harvest times, and curing strategies. This all requires time and effort, but it’s satisfying in the long run.
Reflecting on the costs between purchasing cannabis and growing your own in addition to the benefits that each method has to offer might have you clearly leaning to one side or stuck in a stalemate. Cannabis is not cheap or easy to grow, and chances are you will get higher quality, more diverse products at the local shop.
Cost Estimates of Growing Cannabis Outdoors
You can get high yields of quality product growing outdoors. A plant grown in a 10-gallon pot should net you between 1-2 lbs of flower. You’ll need to consider the amount of time you will put into your garden—a couple of hours every couple of days on average should be enough to take care of your plants. Some days won’t require any work while others will require a bit.
Growing cannabis outdoors can be a very simple startup process. The biggest factor to take into account is the climate where you live. It needs to be sunny and dry enough to promote growth and prevent rot, and it needs to stay sunny and warm long enough into the fall to allow the plants to finish flowering. Growing in a greenhouse can help regulate temperature and moisture-related issues.
Costs Estimates of Store-Bought Cannabis (click to enlarge)
How Much Does It Cost to Grow Your Own Cannabis?
But growing your own cannabis does present some difficulties. Pests, mold, and other diseases can rapidly sabotage a grow and leave you with a bad crop. If you’re completely new to growing, trial and error could lead to some costly mistakes as you learn how to properly raise healthy crops with strong yields.
With the legal cannabis market, consumers can buy an array of products without considering cultivation, much like buying produce at a grocery store. Grocery stores are supplied by farms that take care of the cultivation and grow a product at a reasonable price.
The tools needed to get a grow of that size started include timers, grow lights, filters, and exhaust fans and are typically quite pricey. You could easily spend a few hundred dollars on those alone. On top of that, you’d need pots, soil, a watering can, and other gear to make the experience turn out well. With a Pot for Pot Complete Kit that starts at $79.95, you can see why indoor growing has never been easier.
Let’s say you grow 5 marijuana plants in a 4×4 foot grow tent using a 600 watt HPS lamp. This will run the price tag to about $2000 per year with a yield of a single pound. That works out to about $100 per plant if you are harvesting 4 times a year.
As you can see, unless you’re growing outdoors, you simply get more for your money by using LED lights.
Typical Costs of Growing Marijuana
In many areas, there is a six-plant limit. If that seems small, keep in mind that with just six plants or less, you can still yield plenty. Plus, it is way easier to handle six plants instead of something like fourteen. This is especially true when growing indoors. Think about how much yield you can produce under a grow lamp. For example, using four plants under a 600-watt HPS (High Pressure Sodium) lamp will produce more yield than squeezing sixteen of them under that lamp.
Below are some costs that are typically associated with growing marijuana:
Your marijuana plants need enough light to grow, and generally, 3-4 hours of direct sunlight is the minimum needed. A windowsill will typically give them enough to do it effectively. Grow lights can provide higher yields, but natural sunlight has been doing a great job since long before LEDs were invented, and it’s totally free!
Knowing how to grow a small weed plant is likely the hardest part of actually growing it. Now that you know what to do, you are well on your way to enjoying hassle-free, home-grown marijuana.
We offer The Cannabis Cultivation Financial Model which is a fully-functioning Excel financial model that uses a mix of assumptions to estimate cannabis yields, all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into years for an easy view into the various time periods.
Cannabis Cultivation Initial investments:
Sales are about 1,400 lbs. per year:
So, total electricity costs will be about $55,000. Water costs will be no more than $700..1478 kWh x 1,440 hours x 145 kW = $30,870
Good lights are one of the most important factors when growing cannabis indoors. You can achieve yields of around 1.3-1.5 gram per watt of light.
However, one thing that’s very important to remember when doing any estimations is that although your grow light may account for a lot of your electricity bill, fans and pumps and other things in your grow room also take electricity. These other items cost 3/4 as much electricity as the grow light. It will be plus about $23,150.
Indoor cultivators produce year-round and can generate between 1 and 12 harvests per year. Main indoor cons include:
Thus, the direct cost of growing the cannabis will be around $180,700 or $516 a pound (42% of wholesale price). It doesn’t include administrative, marketing, distribution costs and taxes, which varies depending on the location.
How Much Does it Cost to Grow Cannabis Indoor?
Lets try to calculate how much electricity does it take to grow cannabis indoors for our scenario:
Direct expenses include electricity, water, labor and packaging costs.