Greenhouse Electricity Costs in Ohio: 2026 Buying Guide
How much electricity do greenhouse and indoor-farm operators use?
DOE’s 2017 horticultural lighting study found supplemental greenhouse lighting averaging about 10.4 W/ft² (HID) for about 2,120 hours a year — roughly 22 kWh per lit square foot for lighting alone (our calculation). Indoor vertical farms use far more.
| Illustrative site | Annual use | Est. peak demand | Est. capacity tag | Capacity cost at 2026/27 price | Value of 0.5¢/kWh |
|---|---|---|---|---|---|
| 20,000 ft² | 438,000 kWh | 91 kW | 45 kW | $5,461/yr (≈1.2¢/kWh) | $2,190/yr |
| 60,000 ft² | 1.31 million kWh | 273 kW | 136 kW | $16,384/yr (≈1.2¢/kWh) | $6,570/yr |
| 200,000 ft² | 4.38 million kWh | 909 kW | 455 kW | $54,612/yr (≈1.2¢/kWh) | $21,900/yr |
How these numbers are built: annual use = 21.9 kWh/ft² (Derived: DOE 2017 SSL horticulture report, greenhouse SUPPLEMENTAL LIGHTING ONLY. 588 GWh / 26.8 million ft2 of lit greenhouse area (about 10.4 W/ft2 x 2,120 h/yr)). Peak demand assumes a 55% load factor; the capacity tag assumes 50% of that peak falls in the grid's summer peak hours. Capacity cost uses PJM's 2026/27 clearing price of $329.17/MW-day (about $120 per kW-year) before utility scaling factors. These are illustrations for sizing a decision — your own bills and interval data are what suppliers price.
Where the electricity goes
Supplemental lighting, ventilation fans, circulation fans, pumps and, in some operations, electric heat; LED conversion cuts lighting energy by about 40% according to DOE.
When the load peaks — and why that matters for price
Supplemental lighting typically stretches the light period to about 18 hours a day in darker months, so winter use can exceed summer — the opposite of most commercial buildings.
In Ohio's PJM market, the capacity part of your generation cost is set by how much you use during the grid's few highest summer peak hours. With a 55% load factor and about 50% of the site peak landing in those hours, capacity alone works out to roughly 1.2¢ per kWh at the 2026/27 price of $329.17/MW-day — compared with about 0.1¢ at the 2024/25 price of $28.92. That jump, not the energy price, explains most of the 2025–2026 increase in Ohio business electricity bills.
How greenhouse and indoor-farm operators in Ohio buy electricity
A winter-heavy load shape differs from what matrix prices assume; interval-data pricing usually helps. Agricultural operations in rural areas should first confirm they are not on an electric cooperative, which generally cannot be shopped.
| If you… | Usually consider |
|---|---|
| need a fixed monthly budget | a 12–36 month fixed price with capacity included (fixed vs variable) |
| can move load away from summer peak hours | a product that passes capacity through at cost, so reducing your capacity tag lowers your bill |
| use more than 700,000 kWh a year at a site | an interval-data RFP, block-and-index structures, and HB 15's behind-the-meter options |
| are 700,000 kWh a year or less and never chose a supplier | first check whether you're already in a community aggregation program |
Ohio rules that affect this industry
- Many rural Ohio parcels are served by electric cooperatives (77 of 88 counties have co-op territory); co-op members generally cannot choose a supplier.
- Supplier choice applies to customers of AEP Ohio, Duke Energy Ohio, AES Ohio, Ohio Edison, The Illuminating Company and Toledo Edison. Municipal-utility and electric-cooperative customers generally can't choose a supplier.
- Ohio does not charge sales tax on electricity; the per-kWh excise tax does appear on bills.
- As of 2026, Ohio's utilities do not offer general business efficiency rebates, so upgrades must pay back on bill savings (plus any federal tax treatment).
- Under HB 15 (effective August 14, 2025), suppliers must send two notices before a fixed-rate contract rolls to a variable rate — but only to accounts with demand of 25 kW or less. Larger sites should track their own expiration dates.
Ways greenhouse and indoor-farm operators cut electricity costs
- Convert HID grow lights to LED (DOE estimates about 40% lighting savings).
- Use light-deprivation and dimming controls tied to solar radiation.
- Put fans and pumps on VFDs.
- Schedule lighting to avoid summer peak hours where crops allow.
FAQ
How much electricity do greenhouse grow lights use?
DOE’s 2017 study averaged about 10.4 W per square foot for 2,120 hours a year with HID lighting.
Can a greenhouse on a co-op choose a supplier?
Generally no; co-op members buy from their cooperative.
Does LED lighting pay off in greenhouses?
DOE estimated about 40% lighting-energy savings from full LED conversion.
Sources
- https://www.energy.gov/sites/prod/files/2017/12/f46/ssl_horticulture_dec2017.pdf
- PJM capacity auction results: https://www.pjm.com/markets-and-operations/rpm
Operating evidence for the next contract
For greenhouses & controlled-environment agriculture, an electricity quote should reflect the actual operation rather than a generic business category. Give the reviewer the opening schedule, continuously required systems, planned equipment changes and the responsible legal customer. A national building benchmark can frame a question, but cannot prove the usage or saving at your facility.
| Evidence to review | Decision it supports |
|---|---|
| Current operating schedule and required service levels | Identify whether the quoted load shape represents the next term, rather than last year’s business |
| Equipment and controls associated with greenhouse operations | Separate a procurement question from an engineering or maintenance question |
| A committed expansion, closure or tenant/ownership change | Review usage tolerance, assignment and site add/delete rights before signing |
| Written supply inclusions and exclusions | Distinguish an energy-only offer from a product that includes capacity or other components |
Separate safe operating changes from price decisions
Use an appropriate facility specialist to validate technical changes. Schedule lighting to avoid summer peak hours where crops allow. Treat that as a potential review item, not a guaranteed saving or permission to alter safety-critical settings. Medical, food, process and temperature requirements take precedence over an energy target.
Retain a base case without assumed rebates or unapproved tax benefits. If a project materially changes electricity use, ask the supplier how it affects the contract rather than silently carrying the old consumption profile forward. A lower supply price and reduced consumption are separate effects and should not be counted twice.
Keep the bid review practical
Compare at least the proposed start date, included components, monthly fees, renewal clause, exit rules and the treatment of expected load changes. Ask who is responsible for enrollment and what happens if a meter cannot switch on the expected date. An adviser should be able to explain why staying on the current arrangement may be appropriate.
The browser-only comparison tools keep inputs private. Start an Ohio electricity inquiry with the utility and question, without bills or account identifiers. For the common vocabulary behind the comparison, consult PUCO’s bill definitions.