What is a Greenhouse?

A greenhouse is a plant-growing space, usually made of glass or other transparent materials. In simple words, it is a building with glass walls and a glass roof. Greenhouses provide plants with natural sunlight but protect them from other harsh conditions such as extreme temperatures, heavy rain, strong winds and more. During the day, sunlight enters the greenhouse and heats the air inside, so the inside of the greenhouse can be warm even in winter.

Growing Cannabis in a Greenhouse: Pros and Cons

There are three primary methods of cultivation – outdoor, greenhouse and indoor – which have different production profiles. Outdoor cultivators depending on the climate can produce one or two harvest per year, whereas indoor cultivators can produce year-round and generate 4, 6 or 12 harvests per year.

The cons of outdoor growing include:

  • Growing location is government regulated
  • Dry season requires more effort in watering
  • Deer like to eat and destroy if not tended

Main indoor cons include:

  • Most operations have a limited amount of usable space
  • Maintaining proper ventilation is difficult
  • Higher household energy costs
  • Pumped with fertilizers

Growing cannabis in greenhouses combines elements of both – exploiting natural light, while leveraging infrastructure and technology – to overcome some of the disadvantages of growing outdoors and indoors. Greenhouse cultivation utilizes the latest technology in HVAC, light deprivation, environmental controls, irrigation, insect exclusion, benching systems, hybrid techniques, and much more to create a systematic and efficient growing approach and produce between 1 and 4 harvests per year, though sophisticated, well-equipped greenhouses can run year-round on schedules analogous to indoor production.

Here are some more pros of greenhouse growing:

  1. The biggest advantage greenhouse cannabis cultivation method has is the abundance of natural light coming into the greenhouse.
  2. Greenhouses are not only larger than most indoor cannabis cultivation facilities, but they also typically have higher ceilings.

Here are some cons of greenhouse growing:

  1. Significant upfront costs.
  2. More affected by outside conditions.

Growing Cannabis in a Greenhouse: More Facts

The computer control system for a cannabis greenhouse controls and monitors all the nutrients, lights, blackout, air circulation, CO2 and irrigation needs of the plants, it is designed to maintain the exact environment needed for as many different growing zones as you want and can handle different environments for propagation, cloning, flowering and for as many different varieties as you want to control:

  1. While cannabis likes long daylight during the vegetative stage, a good blackout system is required for the best flowering production.
  2. Heating and cooling systems are an important component of the cannabis greenhouse.
  3. CO2 is essential for maximizing the quality and production of cannabis.
  4. Ventilation is essential as with all greenhouse crops, however cannabis legislation, and local municipality requirements may also impose strict requirements for eliminating exhaust odors.
  5. A nutrient management system is essential for maximizing the production yield of the cannabis plants and ensuring consistent and reliable quality.

Last year’s study reported that 28% of participants cultivate in greenhouses under natural and supplemental lighting and 11% with natural light only. Greenhouse cannabis cultivation method is showing an average cost savings of 35% – direct costs for growing cannabis for that way can drop to about $220 a pound (30% of wholesale price). Vertical farming comprises a significant segment of commercial indoor and greenhouse operations, 37% of participants who use supplemental lighting reported using vertical rack systems for cannabis vegetation and 26% for cannabis flowering.

Cannabis Greenhouse Business: Costs and Profits

In the U.S., the 2023 greenhouse product’s national price ended at about $720 per pound, representing a 13% premium from $638 in December 2022.

The average start-up costs for greenhouse cannabis growers are estimated from $75 to $90 per square foot. Initial investments should be enough to cover all capital and operational costs to maintain positive cash flow. Construction costs for commercial cannabis greenhouses start at around $25 to $50 per square foot. Important things to budget for also include:

  • Irrigation system
  • HVAC system
  • Lighting system
  • Fertilization system
  • Supplies
  • Labor
  • Water
  • Energy

The direct cost of growing cannabis would be approximately $215 per pound (less than 30% of the wholesale price), while non-operating costs including licensing, rent, professional services, administrative and marketing expenses and labor will add another $200 per pound.

For our example, we are considering a growing area of 13,500 sq. ft (including a 750 sq. ft nursery), holding approximately 1,800 plants with an estimated yield of 500 lbs., 3 harvests per year and estimated time to 100% yield 4 months.

Revenue1,164,426
Direct Costs317,140
Direct Costs196,314
Cultivation Labor120,826
Gross Profit847,286 (73%)
Operating Expense308,243
Operating Income (EBITDA)539,043 (46%)
Net Income235,419 (20%)

How much does it cost to grow cannabis outdoor?

How much does it cost to grow cannabis indoor?


Cannabis Cultivation Financial Model

Calculate cannabis greenhouse growing costs and profits with our pre-populated cannabis cultivation financial model. All you have to do to get started is enter the size of your greenhouse/s. The model will help you estimate how much it costs to start and operate your own cannabis growing business, build all revenue and cost line-items monthly over a flexible seven year period, and then total the monthly results into quarters and years for an easy view into the various time periods.

cannabis cultivation financial model

Cannabis Greenhouse Growing FAQs

What is the average yield of cannabis in greenhouses?

On average, greenhouse growers can expect a yield of 0.25-0.30 lbs. or 4-5 ounces per plant / 35-40 pounds per 1,000 sq. ft.

How much does it cost to produce a pound of weed in a greenhouse?

The median average cost to grow a pound of dried cannabis flower in a high-tech greenhouse can be around $300-$600.

'70% ready to go' business plan templates

We also offer Word document and PowerPoint pitch deck templates for your cannabis growing business.

Should you have any questions, please do not hesitate to contact us


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