Industrial Grow Lighting and Depreciation

Given this, it should come as no surprise that the cannabis growing community made the shift to LED grow lights.

EBITDA, a term that every financial accountant and business owner is familiar with. The oft-used acronym stands for earnings before interest, taxes, depreciation and amortization. A well-run business is fully capable of managing the amortization of debt, the paying of taxes and the accounting of interest. What a business owner cannot control is the depreciation of assets. This is particularly true in the burgeoning field of industrial cannabis farming.

Whether growing hemp or high-grade psychoactive cannabis, the industry had seen an incredible shift in the last decade. Grow rooms of the past were illuminated with either high-pressure sodium or metal halide grow lights. Any veteran cultivator knows the struggle of keeping track of the hours their bulbs have been used, as they need replacement every few seasons to maintain the proper spectrum emissions. Given this, it should come as no surprise that the cannabis growing community enthusiastically made the shift to LED grow lighting.

Whereas traditional bulbed lighting solutions require continuous investment(in addition to the initial cost of ballasts and hoods), LED grow lights do not. This advantage cannot be overstated, and this is especially true for large scale industrial grows. Businesses are about generating profit, and the depreciation costs of traditional bulbs can amount to a significant reduction in profit for cannabis growers. LED lights, on the other hand, require zero maintenance and have a much longer lifespan. It is for this reason that financially prudent cannabis growers should invest in the highest quality grow lights available.

Much of the LED lighting industry is comprised of high quality LED panels housed within cheap casings, often with insufficient heat venting. On the other hand, there are a few LED lighting companies who have carved out a niche market by making the highest quality LED panels possible. Companies such as DroLED have come to the aid of cannabis accountants worldwide by providing lights that are a one-time expenditure, and which represent virtually zero depreciation due to their build quality. Whether you're looking for a solution to illuminate a small home grow, or you're looking to light an industrial scale grow room, choosing cheap lights is a losing move. Make the wise financial choice by investing in industrial grade grow lights that won't end up in a dumpster or as a balance sheet loss in just a few years time.

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Tara Tedrow
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