With the recent and continuing emergence of multiple states legalizing cannabis for either medical and/or recreational use, Green Solar Technologies is excited and proud to be serving and supporting the ever-expanding legal cannabis industry. Many factions within the industry must utilize an exorbitant amount of electricity within their operations, specifically those with indoor growing facilities. Some utility companies have reported power outages, which could be directly attributed to local cannabis facilities’ extreme electricity needs.
Indoor facilities allow for more control over the product, higher yields and multiple harvests but at a price of having to generate a massive amount of electricity to power the year-round lighting and HVAC systems, most prominently in states which can have harsh winters such as Massachusetts.
The IRS code allows for expensing all costs that fall into the COGS (Cost of Goods Sold) category of a cannabis business. For growers, this can include the cost of soil, seed, lamps and water. For manufacturers of oils, edibles and other processed marijuana products; it can include containers, machinery and raw goods. For both growers and manufacturers, electricity is oftentimes the highest expense in COGS.
Manufacturers and growers can take advantage of state and federal tax incentives that can offset the cost of solar by up to 50%. Furthermore, powering facilities with solar positively impacts the environment by reducing fossil fuel emissions and the carbon footprint, which is also a major concern within those active in the cannabis industry. It also provides a valuable marketing message to those with similar concerns among their customer base.
Green Solar Technologies understands the unique challenges faced by growers and manufacturers including the fact that they need to pay federal taxes yet cannot deposit funds in traditional banking institutions. A solar energy system can provide an effective way to reduce operating expenses and minimize federal taxes while allowing a safe and secure place for those in the industry to invest their money - and get a tremendous return on that investment. For more information on the benefits and advantages that solar energy provides the cannabis industry, visit www.greensolartechnologies.com/cannabis.