A comprehensive analysis of the return on investment is probably the single largest consideration when reviewing the cost of a significant capital expenditure. By reviewing the complete cost of an option against the value of the benefits, an informed decision can be made as to whether or not to proceed with the purchase.

On this site we have analyzed the power savings per LED light in a commercial grow as well as energy savings in the form of reduced cooling needs. We have reviewed the increased yields offered by LED grow lights and how it creates significant increased revenue. By reviewing all of this information and considering the cost of buying LED grow lights for a commercial environment, we can show why LED grow lights are a sound investment for a commercial Cannabis cultivation facility.

On the Commercial Yields and Maximizing Profit pages the amount of increased revenue per harvest was calculated as follows:

PhytoMAX 800 increased revenue per harvest per room vs. 1000 watt ducted single-ended HPS$6,246
PhytoMAX 800 increased revenue per harvest vs. DE HPS$3,923
PhytoMAX 1000 increased revenue per harvest vs. 1000 watt ducted single-ended HPS$14,414
PhytoMAX 1000 increased revenue per harvest vs. DE HPS$12,092
Loading graph…
This graph shows the increased revenue per harvest with PhytoMAX 800 and PhytoMAX 1000 lights above single-ended and double-ended HPS lights.

To determine the ROI for any light comparison you would need to consider the cost of the LED grow light and the cost of the alternative.

Note that to simplify our ROI calculations we are including only the additional revenue from increased yield and are ignoring power savings from the lighting fixtures and reduced cooling needs, HPS bulb replacement costs and associated labor and hazardous waste disposal fees.

ROI for PhytoMAX 800 LED Grow Lights
vs.
Ducted Single-ended 1000 watt HPS

Commercial volume price for PhytoMAX 800$1,800 per fixture
Cost for 12 PhytoMAX 800 LED grow lights$21,600
Commercial volume price for basic ducted single-ended HPS bulb, reflector and ballast$350 per fixture
Cost for 12 ducted single-ended HPS fixtures$4,200
Difference between cost of PhytoMAX 800 and single-ended HPS$21,600 – $4,200$17,400 for the room
Number of flowering cycles to pay back PhytoMAX 800 versus 1000W ducted single-ended HPS$17,400 initial cost difference / $6,246 increased revenue over single-ended HPS per run2.78 flowering cycles
Assuming 9 weeks of flowering time and an average of 10 weeks per run including room turn-around: 
Weeks to recoup all investment in PhytoMAX 8002.78 runs X 10 weeks per run27.8 weeks
Months to recoup all investment in PhytoMAX 80027.8 weeks / 4.35 weeks/month6.4 months
With 5.2 flowering cycles per year, the total annual increased revenue for the room with PhytoMAX 800 over single-ended HPS lights5.2 runs X $6,246 increased revenue per run$32,479 per year
Additional profit after recouping cost of PhytoMAX 800 vs. single-ended HPS in the first year$32,479 additional revenue – $17,400 difference in fixtures cost$15,079 additional profit the first year
Additional profit after 5 Years$15,079 for first year + 4 years X $32,479 per year$144,995
Loading graph…
This graph shows the per-harvest increased revenue with PhytoMAX 800 above single-ended HPS lights.

ROI for PhytoMAX 800 LED Grow Lights
vs.
DE HPS

Commercial volume price for PhytoMAX 800$1,800 per fixture
Cost for 12 PhytoMAX 800 LED grow lights$21,600
Commercial volume price for Gavita DE HPS$425 per fixture
Cost for 10 DE HPS fixtures$4,250
Difference between cost of PhytoMAX 800 and DE HPS$21,600 – $4,250$17,350 for the room
Number of flowering cycles to pay back PhytoMAX 800$17,350 initial cost difference / $3,923 increased revenue over DE HPS per run4.4 flowering cycles
Assuming 9 weeks of flower and an average of 10 weeks per run including room turn-around: 
Weeks to recoup all investment in PhytoMAX 8004.4 runs X 10 weeks per run44 weeks
Months to recoup all investment in PhytoMAX 80044 weeks / 4.35 weeks/month10.1 months
With 5.2 flowering cycles per year, the total annual increased revenue for the room with PhytoMAX 800 over DE HPS lights5.2 runs X $3,923 increased revenue per run$20,400 per year
Additional profit after recouping cost of PhytoMAX 800 vs. DE HPS in the first year$20,400 additional revenue – $17,350 difference in fixtures cost$3,050 additional profit the first year
Additional profit after 5 Years$3,050 for first year + 4 years X $20,400 per year$84,650
Loading graph…
This graph shows the per-harvest increased revenue with PhytoMAX 800 above double-ended HPS lights.

ROI for PhytoMAX 1000 LED Grow Lights
vs.
Ducted Single-ended 1000W HPS

Commercial volume price for PhytoMAX 1000$2,100 per fixture
Cost for 12 PhytoMAX 1000 LED grow lights$25,200
Commercial volume price for basic ducted single-ended HPS bulb, reflector and ballast$350 per fixture
Cost for 12 ducted single-ended HPS setups$4,200
Difference between cost of PhytoMAX 1000 and single-ended HPS$25,200 – $4,200$21,000 for the room
Number of flowering cycles to pay back PhytoMAX 1000$21,000 initial cost difference / $14,414 increased revenue over HPS per run1.46 flowering cycles
Assuming 9 weeks of flower and an average of 10 weeks per run including room turn-around: 
Weeks to recoup all investment in PhytoMAX 10001.46 runs X 10 weeks per run14.6 weeks
Months to recoup all investment in PhytoMAX 100014.6 weeks / 4.35 weeks/month3.4 months
With 5.2 flowering cycles per year, the total annual increased revenue for the room with PhytoMAX 1000 over single-ended HPS lights5.2 runs X $14,414 increased revenue per run$74,953 per year
Additional profit after recouping cost of PhytoMAX 1000 vs. single-ended HPS in the first year$74,953 additional revenue – $21,000 difference in fixtures cost$53,953 additional profit the first year
Additional profit after 5 Years$53,953 for first year + 4 years X $74,953 per year$353,765
Loading graph…
This graph shows the per-harvest increased revenue with PhytoMAX 1000 above single-ended HPS lights.

ROI for PhytoMAX 1000 LED Grow Lights
vs.
DE HPS

Commercial volume price for PhytoMAX 1000$2,100 per fixture
Cost for 12 PhytoMAX 1000 LED grow lights$25,200
Commercial volume price for Gavita DE HPS$425 per fixture
Cost for 10 DE HPS fixtures$4,250
Difference between cost of PhytoMAX 1000 and DE HPS$25,200 – $4,250$20,950
Number of flowering cycles to pay back PhytoMAX 1000$20,950 initial cost difference / $12,092 increased revenue over DE HPS per run1.73 flowering cycles
Assuming 9 weeks of flower and an average of 10 weeks per run including room turn-around: 
Weeks to recoup all investment in PhytoMAX1.73 runs X 10 weeks per run17.3 weeks
Months to recoup all investment in PhytoMAX 100017.3 weeks / 4.35 weeks/month4 months
With 5.2 flowering cycles per year, the total annual increased revenue for the room with PhytoMAX 1000 over DE HPS lights5.2 runs X $12,092 increased revenue per run$62,878 per year
Additional profit after recouping cost of PhytoMAX 1000 vs. DE HPS in the first year$62,878 additional revenue – $20,950 difference in fixtures cost$41,928 additional profit the first year
Additional profit after 5 Years$41,928 for first year + 4 years X $62,878 per year$293,440
Loading graph…
This graph shows the per-harvest increased revenue with PhytoMAX 1000 above double-ended HPS lights.

View the next section where we discuss the conclusions based on this data.