Stats About Hydroponic System Costs

Stats About Hydroponic System Costs

Stats About Hydroponic System Costs, Although hydroponic farming is booming and receiving a lot of media attention, many people still wonder if it is actually profitable.

The majority of hydroponic farms are constructed indoors or in greenhouses. With numerous farm operations around the world, both types of farms have been successfully used commercially. These are extremely productive facilities that are bringing in enough money to cover overhead costs and pay farm workers a living wage.

We’ll go over the initial startup costs in this post to illustrate how challenging it is to get going. To better understand the economics, we will also look at the revenues and costs for a typical indoor hydroponic farm.

Stats About Hydroponic System Costs

Stats About Hydroponic System Costs

In this article:

    • TheZipFarm utilized in this instance
    • The associated startup costs
    • The farm uses a lot of energy.
    • The lighting scheme we’re employing right now
    • Basil and lettuce yields in terms of production
    • Why growing and selling herbs is something you should be interested in
    • Revenue figures

A new food system calls for new practices

How is that even possible? by utilizing resource-wise farming techniques and controlled environment agriculture. The ZipFarm is currently the most popular indoor farming system. A thorough evaluation of the ZipFarm indoor farm system can be found below. About the ZipFarm,

The ZipFarm Full Bundle, our most popular indoor/vertical farm package, is used as an example in this section. A single farm manager can easily run this small indoor farm, which offers year-round production.

To show profitability, we have both our own data and numbers from our farmers. We have, however, used conservative crop pricing estimates that should translate reasonably well into your market because each market and each crop is unique.

We advise conducting some initial market research with nearby restaurants, food brokers, and retailers to demonstrate the model in your own area. Costs associated with establishing an indoor hydroponic farm
Here is how the statistics look so far:

    • Footprint 500 square feet is .
    • Price of the ZipFarm at launch $110,000 (not including upgrades to the facility)

The prices listed here include every part of a vertical indoor farm with automated nutrient dosing and high output LED lighting.

Presented in this bundle are:

  • 192 ZipGrow Towers
  • 15 ZipGrow Racks for supporting the Towers
  • 48 Lighting Units
  • 2 Light Racks for supporting the lights
  • 1 – 330 Gallon Nutrient reservoir, with UV filtration and automated nutrient management.
  • 1 CO2 injection

The smallest indoor farming system we provide is this one. Without additional investment, the nutrient reservoir can be scaled up by about three times from this size. To scale up from this size, though, would mean paying more for lighting and ZipGrow Towers. /Racks.

Energy costs for hydroponic lettuce growing indoors

The ZipFarm’s largest ongoing expense is related to lighting.

In the example presented here, 48 355 watt LED lighting units are being used.

  •  48 Lighting units
  • 355 watts per unit to run
  • 18 hours a day of illumination
  • 306.72 kWh daily total

The average cost per kWh for commercial energy in 2016 was 10.37c/kWh. Average residential energy costs per kWh were 12.56c/kWh.

As a result, our daily electricity expenses are $31.80 (commercial) and $38.52 (residential).

  • 306.72 kWh x $0.1037 /kWh = $31.80 per day
  • Daily cost is $38.52 (306.72 kWh x $0.1256/kWh).

Costs and advantages of LED lighting technology

Since crop yields are directly correlated with light availability, we advise finding a solution with high enough PAR values to support robust production.

A higher PAR value will result in higher energy costs, but it will also enable you to produce higher crop yields, which will increase your revenue and pay for additional energy costs.

Crop cycles are shortened, and yields are increased as a result.

Commercial hydroponic lettuce yield and

On a 3.6 week crop cycle, we are getting 5.6 pounds of lettuce per ZipGrow Tower.

We will be using 96 ZipGrow Towers to grow lettuce if we allocate half the farm to lettuce. We’ll devote the remaining time to herbs.

96 towers at 5.6 lb each equal 537.6 lbs. over the course of three weeks, each of lettuce and basil. Herbs and greens are among the most profitable plants to grow hydroponically, making them the ideal crops for indoor farming.

When possible, we use conservative numbers. If you’re interested in crop yields, you should know that ZipFarm has been outperforming expectations in the field and that most of our farmers are finding they have more produce than they expected (a good problem to have).

Hydroponic farming is commercially viable; grow basil to increase your profits

The market for herbs is not as large as that for leafy greens. However, your herbs can be very profitable if you can find a market for them.

As a side note, you may have noticed that the majority of herbs you find on the shelves are fairly weak if you recently put together an Italian pasta recipe. They frequently travel for a week before arriving at the shelf, where they wilt as they wait. They taste bland and are worn out.

Indoor growers have a good chance to swap out these mediocre herbs for a locally sourced variety. Localize farms’ Ryan Sweeney explains how he is achieving high crop yields in the video up top.

What percentage of a hydroponic farm’s profits are typical?

We will need 96 ZipGrow Towers per crop if we allocate half the farm to lettuce and the other half to basil. Genovese Basil, which we are currently cultivating, performs nearly identically to the Red Leaf Lettuce.

96 towers at 5.6 lbs each over a three-week period = 537.6 pounds.

In this instance, we’ll assume that 50% of our production is lettuce, sold at a wholesale price of $3.50/lb, and 50% is herbs, sold at a wholesale price of $1/oz.

Production of lettuce from 96 towers is 5.6 pounds /towerThe weight ofis 537.6 lbs. wholesale $3.50 /lb$1,881
Basil production from 96 towers at 5.6 pounds /tower3.6 weeks The weight ofis 537.6 lbs. $20/lb retail$8,601
(3.6 week crop cycle) (3.6 week crop cycle)$10,482


We try to use numbers that are fairly conservative. In addition, we like to factor in a 10% crop loss, particularly in the first few months of the farm. We advise gathering pricing data from several sources to ensure the precision of our pricing figures:

    • managers of produce stores
    • specialty shops and food cooperatives
    • entire foods
    • food agents
    • Restaurants

The overall revenue figures seem good, assuming you have a market for the crops. The best crops for indoor farming are herbs and greens, which are also some of the most profitable plants to grow hydroponically.

These crops are ideal for replacing imports from other states and creating a small portion of the local food economy, even though indoor production may not be the answer to all of the world’s food problems.

There are plenty of places where these crops are in high demand, and the market pricing is healthy enough to justify a closer look.

If you are looking into the economics of commercial hydroponic farming, there are a couple assumptions worth pointing out:

  • Hydroponic farms are already profitable. That’s why big corporations have built big greenhouses to grow the crops.
  • Greenhouses and, increasingly, indoor farms are also profitable. The barriers are not the economics so much as access to the market.

So far we have covered:

  • Initial startup costs
  • Energy costs for operating the ZipFarm
  • Production yields for lettuce and basil
  • Wholesale pricing for an average market
  • Projected revenues on a 3.6 crop cycle

But we are missing a few pieces of the puzzle. Specifically, we need to know how much our overhead costs are. How much does it cost for the labor to run the farm? How about the seeds, packaging, or nutrients? And we haven’t talked about rent or mortgage payments.

If you are looking for more details, check out this introduction to the ZipFarm, where we will cover these costs.

In particular, we will be answering several frequently asked questions:

  • What are the average costs of running a hydroponic farm?
  • How much labor is involved to bring the crop to harvest?
  • What about lighting and energy costs?
  • Are the crop prices realistic?

16 Stats About Hydroponic System Costs

With their rising popularity among both commercial and backyard growers, hydroponic systems are revolutionizing the agriculture sector.

There are many suggestions for switching to hydroponic systems on the internet. But what is the actual price?

We’ll look at some statistics in this article about the costs and earnings of hydroponic systems.

What is a hydroponic system, you might be asking at this point.

Agriculture practices known as hydroponics use nutrient-rich water rather than soil and ordinary water to feed plant roots.

Plants can devote more energy to growing strong and healthy because they don’t have to spend time looking for nutrients. Because their roots don’t spread, plants in hydroponic systems can also grow closer to one another.

Hydroponic systems are praised for their ability to grow stronger crops and greater yields in condensed areas.

Due to the lack of soil requirements and the availability of abundant artificial lighting, indoor farms frequently use hydroponics.

Vertical farms, container farms, and greenhouses are common indoor farms that frequently use hydroponic systems.

There are no signs that the hydroponic farming sector will disappear. By 2025, it is expected that the market will be worth $16 billion globally.

Here are 15 quick facts about the costs and profits of hydroponic systems taken from a study on indoor farming by cultivation management system Artemis.

  1. Small (less than 10,000 square feet) indoor vertical farms in.
  2. Spend $3.45 on average per square foot on energy, which accounts for 12% of all operating costs.
  3. For comparison, large indoor vertical farms (those with an area greater than 10,000 square feet) spend $8.02 per square foot on energy, or 25% of their overall operating costs.
  4. 6% on average of total operating costs are spent on seeds, growing media, and nutrients in small hydroponic farms, according to
  5. On the other hand, large hydroponic farms typically spend 13% of their overall operating budget on seeds, growing media, and nutrients.
  6. An average of $21.15 is made by hydroponic farming systems per square foot.
  7. The average revenue generated by vertical farming systems is $41.16 per square foot, but this figure can range from $2.13 to $100.
  8. Profitability is only 27% of indoor vertical farms. In the meantime, container farms are profitable in 50% of cases.
  9. No matter what kind of structure they are used in, hydroponic systems are profitable 60% of the time.
  10. Because they have some of the lowest operating costs, leafy greens like lettuce are the most profitable crops to grow in hydroponic systems. Maintaining one square foot of lettuce costs about $20.
  11. All hydroponic flower growers in reported having successful operations.
  12. Due to the technology’s relative youth, container farms make up only 7% of indoor farms.
  13. It is best to stick with a single farming method, such as hydroponics, because 75% of farms that used a combination of farming systems were not profitable.
  14. The leafy greens and microgreens produced hydroponically have the highest profit margins, at 40%.
  15. Profitable indoor vertical farms generate $14.88 per square foot on average after operating expenses.
  16. For all indoor farms, labor is typically the largest operating expense. An average of 57% of a small hydroponic farm’s budget is allocated to labor.

You gained some basic knowledge of hydroponic farming as well as 15 statistics about the costs and profits of hydroponic farm systems from this article.

FAQ Stats About Hydroponic System Costs

How much does a hydroponic system cost? Your hydroponic garden’s technology quality will have a significant impact on how much it costs. A hydroponic system costs anywhere from $50 to $10,000.

What are the top 8 fascinating hydroponics-related facts? Stunning Hydroponics Statistics Water Use is 90% Less in Hydroponics. No Soil Is Necessary. Plants can be grown year-round. Hydroponics Promotes Faster Plant Growth. Plants expand in size. greater plant health. No Weeding Is Necessary. You Can Completely Control Plant Growth With Hydroponics. Item of interest

Is hydroponics more expensive? Is Soil More Expensive Than Hydroponics? While hydroponic gardening is less expensive than soil gardening, it does require a start-up cost. In comparison to plants grown in regular soil, you can anticipate seeing quicker plant growth and better plant production.

What are the top 3 problems with hydroponic systems? Four common issues with hydroponics and solutions Root decay mold development Plant Leaf Problems Pests.

The cost of hydroponics is why? The cost of installing a hydroponic system is one of the main factors. Pumps, tanks, and system controls are required, and each square foot of growing space can easily cost several hundred dollars. Additionally, you will require lighting supplies.

What does it cost to launch a hydroponics company? Hydroponics system prerequisites: A $10,000 initial investment is required for this area. a variety of vegetables you’d like to grow You can feed a family of four or five people with just one kilogram of vegetables per day if you grow a variety of vegetables in your setup.

What are the top five benefits of hydroponics? The following are a few benefits of using hydroponics: greater yield. controlled dietary intake. Plants grow faster and are healthier. Eliminating weeds is simple. There is very little vulnerability to diseases and pests. Automation may be done. Item of interest

What are hydroponics’ four advantages? water usage that is up to 90% more efficient. Production increases in the same amount of space by 3 to 10 times. In a properly run hydroponic system, many crops can be produced twice as quickly. The nutritional value of the finished product rises as harvest and consumption are separated by less time.

What are the two benefits and two drawbacks of hydroponics? Different Benefits and Drawbacks of Hydroponics What Hydroponic Farming Is All About. Hydroponic farming benefits No soil was utilized. Optimal Location Use. total command of the climate. conserves water. Farming in hydroponics has drawbacks. takes a lot of time. Some Expertise is Required. Water and electricity risks.

What are hydroponics’ five drawbacks? Five drawbacks of hydroponics costly to set up. A hydroponics system is more expensive to buy and construct than a conventional garden. exposed to power outages requires ongoing maintenance and monitoring. illnesses caused by water. Plants experience issues more quickly.

Is hydroponics a high electricity user? In comparison to the price of lighting, pumps and other equipment used in hydroponic gardening use relatively little electricity. Even the least-used appliances will increase your utility costs. In the end, hydroponic gardening’s high electricity costs are passed on to the consumer.

How much do hydroponic nutrients cost? Hydroponic Supplements Cost to launch: $20 to $35. It will be necessary to switch plants that flower and produce fruit to a nutrient regimen designed for that production. You must choose between a one-part solution and a multi-part solution before making a nutrient solution purchase.

What dangers do hydroponics pose? 8 Hydroponic Growing Risks You Should Know About and Minimize Fire risks. How could a system based on water cause a fire risk? risks to food safety. Water appeals to plants. risks from plant diseases. One set of diseases to be concerned about is those that spread from plants to people. dangers of power outages. freezing risks. absence of supervision

What benefits and drawbacks does hydroponics offer? Hydroponics’ Benefits And Drawbacks Quality Food For More People Is The First Advantage. Reduced Water Use In Drought Areas is the second benefit. Food For Densely Populated Urban Areas is a Pro #3. Con #1: High initial costs. Con #2: It may not always be forgiving. For You, Baywater Farms Has The Right Produce.

Which four types of hydroponic systems are there? Consider wicking, deep water culture (DWC), nutrient film technique (NFT), ebb and flow, aeroponics, and drip systems when choosing a hydroponic system for your garden.