Nevada Cannabis Cultivation Facility Energy: Desert Cooling, NV Energy LGS Classes, and Summer TOU Peaks
A Nevada indoor grow is a flat lighting block riding on top of a long desert cooling season. Statewide normals average 2,166 cooling degree days, and Clark County runs hotter still, so chillers dominate summer peaks even when ambient humidity is low. NV Energy places larger accounts on LGS-1 through LGS-3 in the south or GS-3 and GS-4 in the north, with optional TOU schedules that concentrate demand charges from 3:01 to 9 p.m. June through September.
Nevada figures last verified 2026-09-11. Full citations in the Sources section.
What an indoor grow looks like to NV Energy
A utility meter sees a nearly flat block when grow lights are on, a smaller block when they are off, and a summer bump when chillers fight outdoor temperatures that routinely exceed 100 F in Clark County [noaa-cag-nevada]. Unlike humid coastal states, Nevada's low ambient humidity means ventilation air rarely adds latent load [noaa-cag-nevada]. The peak still arrives in July and August because sensible heat from lights and mechanical cooling stack on the same schedule [noaa-cag-nevada].
Nevada's 103 licensed cultivators are overwhelmingly on NV Energy bundled service [ccb-active-license-list]. Retail supplier choice does not exist for a typical grow. The lever is tariff selection, load scheduling, and efficiency, not a supply contract.
Southern Nevada class placement (Nevada Power)
Effective January 1, 2026, southern commercial schedules break as follows [nve-south-commercial-rates]:
| Schedule | Usage / demand threshold | Demand billing |
|---|---|---|
| GS | Up to 3,500 kWh per month | No demand charge |
| LGS-1 | Over 3,500 kWh; billing demand up to 299 kW | $4.60/kW facilities + $5.48/kW demand |
| LGS-2 | Billing demand 300 kW to 999 kW | Per tariff |
| LGS-3 | Billing demand 1,000 kW or greater | Per tariff |
Optional TOU versions (OGS-TOU, OLGS-1-TOU, LGS-3P high-load) shift the demand charge to summer on-peak: June 1 through September 30, 3:01 p.m. to 9 p.m. daily [nve-south-commercial-rates].
A standard indoor flowering facility under LEDs commonly peaks between 150 kW and 400 kW depending on canopy square footage and HVAC redundancy. That range typically lands on LGS-1 or LGS-2 in Las Vegas. Crossing 300 kW moves the account into LGS-2 pricing, which changes both facilities and demand line items [nve-south-commercial-rates].
Northern Nevada (Sierra Pacific) uses GS-1 through GS-4 with breakpoints at 50 kW, 500 kW, and 1,000 kW [nve-south-commercial-rates]. A Reno-area grow follows a different dollar-per-kW stack even at the same peak kW.
Worked example: 25,000 sq ft indoor flowering under LEDs
Assumptions (label every one):
- Location: Clark County, Nevada Power territory
- Canopy: 25,000 sq ft flowering, LED at 35 W/sq ft fixture draw
- Lighting load: ~875 kW nameplate; actual metered peak with HVAC ~320 kW (typical oversizing and staggered zones)
- Schedule: LGS-2, non-TOU for this illustration
- Annual kWh: 2.8 million (flat 18-hour photoperiod, partial HVAC overlap)
- Bundled energy rate: 9.83 cents/kWh (EIA Nevada commercial average, June 2026) [eia-epm-5-6-a]
- Demand: one monthly peak at 320 kW; use LGS-1 demand charge of $5.48/kW as a conservative proxy because the example straddles classes [nve-south-commercial-rates]
Energy portion: 2,800,000 kWh × $0.0983 = $275,240
Demand portion (illustrative): 320 kW × $5.48/kW × 12 months = $21,043 (facilities charge omitted; actual LGS-2 tariff may differ)
Rough annual total: about $296,000, or 10.6 cents/kWh all-in before riders, DEAA adjustments, and taxes.
This is not a quote. It shows how a favorable 9.83 cent average can still produce double-digit all-in costs once 320 kW of summer peak bills every month on a demand schedule [eia-epm-5-6-a] [nve-south-commercial-rates]. Moving the same load to optional TOU and shifting 80 kW out of the on-peak window could reduce the demand line materially; NV Energy's storage incentive pays more for TOU customers precisely because that peak is expensive [nve-storage-incentive].
Lighting, HVAC, and CO2 in a 2,166 CDD climate
Statewide normals average 2,166 cooling degree days and 3,452 heating degree days [noaa-cag-nevada]. Las Vegas exceeds the statewide CDD figure. Design implications:
- Chiller and condenser sizing must cover extended summer run hours, not just peak day design.
- Low ambient humidity reduces dehumidifier work on makeup air but not on in-room transpiration [noaa-cag-nevada].
- Nighttime lighting schedules that overlap NV Energy's 3:01 to 9 p.m. summer on-peak window guarantee peak demand during the highest-priced interval on TOU schedules [nve-south-commercial-rates].
CO2 enrichment and supplemental heating add baseload kWh but rarely set peak kW unless gas heat is unavailable and electric resistance runs in northern Nevada winters [noaa-cag-nevada].
Demand ratchets and minimum billing demand
The January 2026 Nevada Power rate summary does not state a demand ratchet [nve-south-commercial-rates]. Open the full tariff for minimum billing demand provisions before assuming a single bad month disappears next billing cycle. Even without a ratchet, LGS class placement persists until usage patterns change, so oversizing HVAC for day-one canopy you have not planted yet can lock in demand charges early [ccb-active-license-list].
Conditional cultivation licenses on the CCB September 1, 2026 sheet (39 adult-use cultivation pending inspection) are energizing service now [ccb-active-license-list]. Size electrical service for planned canopy, but stagger room commissioning so all flowering rooms do not hit peak simultaneously on the first harvest cycle.
The 704B threshold and why most grows stay bundled
NRS 704B allows a customer averaging 1 MW or more of annual load to buy energy from a provider of new electric resources while taking Distribution Only Service from NV Energy [nrs-704b]. The PUCN sets a case-specific impact fee, and applications are accepted only January 2 through February 1 with at least 280 days' lead time [nrs-704b].
A 320 kW peak grow running flat might reach roughly 1.9 million kWh annually, far below the 8.76 million kWh implied by a 1 MW average load. Multi-building campuses and the largest LGS-3 accounts are the only cultivation scenarios worth modeling a 704B exit [nrs-704b]. See the 704B guide for the application calendar.
Efficiency and storage programs
- Custom grow-light incentives through PowerShift Business Energy Services when prescriptive lists do not cover horticultural fixtures [nve-bes-summary].
- Commercial storage incentive at $0.32 to $0.60 per Wh depending on system size and TOU enrollment, with caps up to $500,000 on larger systems [nve-storage-incentive].
- Instant Discount on eligible LED products at point of sale for qualifying distributor purchases [nve-bes-summary].
Confirm funding and pre-approval requirements before capital planning.
On-site solar pairs with Nevada's high insolation, but export compensation and standby charges follow NV Energy tariffs and may not offset evening lighting load [nve-bes-summary]. Battery storage behind the meter targets summer on-peak demand shaving more reliably than solar alone for a 12-hour flowering photoperiod [nve-storage-incentive]. See the on-site solar and storage guide for interconnection sequencing with CCB buildout timelines.
Staggered photoperiod and on-peak overlap math
Optional Nevada Power TOU schedules concentrate demand charges from 3:01 to 9 p.m. June through September [nve-south-commercial-rates]. Assume 320 kW peak with lights and HVAC fully coincident in that window versus 320 kW peak with 80 kW of lighting shifted to off-peak hours (inputs).
| Case | On-peak coincident kW | Demand charge exposure |
|---|---|---|
| Full overlap | 320 | Full TOU demand $/kW on 320 kW [nve-south-commercial-rates] |
| 80 kW shifted off peak | 240 | TOU demand on 240 kW if peak moves [nve-south-commercial-rates] |
Eighty kW shifted is not agronomy-free; it requires veg and flower scheduling discipline. NV Energy's storage incentive pays higher tiers for TOU customers precisely because that window is expensive [nve-storage-incentive].
Commissioning conditional licenses without demand surprises
The CCB September 1, 2026 conditional sheet lists 39 adult-use cultivation licenses pending pre-opening inspection [ccb-active-license-list]. Energizing every room on the same week creates a single-month peak that can lock LGS class placement for months [nve-south-commercial-rates]. Bring rooms online in phases aligned with first harvest cycles, and verify whether the tariff sets minimum billing demand before assuming one bad month rolls off immediately [nve-south-commercial-rates].
Annual kWh stack for the worked example grow
Continuing the 25,000 sq ft Clark County assumptions above [noaa-cag-nevada] [eia-epm-5-6-a]:
| Load | Assumption | Annual kWh |
|---|---|---|
| Flower lighting | 700 kW effective, 12 h/day, 365 days | 3,066,000 |
| Veg lighting | 80 kW, 18 h/day, 365 days | 525,600 |
| HVAC and cooling | 200 kW average | 1,752,000 |
| Fans, pumps, office | 40 kW continuous | 350,400 |
| Total | 5,694,000 |
At 9.83 cents/kWh energy only, that stack is about $559,700 per year before LGS demand and facilities charges [eia-epm-5-6-a] [nve-south-commercial-rates]. Demand at 320 kW using the $5.48/kW proxy adds roughly $21,000 annually as calculated above [nve-south-commercial-rates]. Pull the full LGS-2 tariff for facilities charges before budgeting a pro forma [nve-south-commercial-rates].
CO2 burners and indirect peak kW in sealed rooms
Bottled CO2 adds little direct electric load. Burner-based CO2 adds heat the HVAC must remove, which can set summer billing demand when chillers and dehumidifiers run together [noaa-cag-nevada]. In Nevada's dry ambient air, latent load from ventilation is low, but in-room transpiration still drives dehumidifier kW [noaa-cag-nevada]. See dehumidification load in indoor cannabis for the interaction with optional TOU on-peak windows [nve-south-commercial-rates].
Where to go next
- Nevada hub for market and choice overview
- Commercial electricity rates for class tables and EIA benchmarks
- NV Energy utility page for tariff detail
- Compare desert grow economics: California cultivation guide, Texas cultivation guide
Tariff dollars on this page were verified against sources opened on 2026-09-11. Pull the current NV Energy rate insert before quoting a specific facilities or demand charge.
Compare with other states
Frequently asked questions
What NV Energy schedule does a mid-sized Nevada grow usually land on?
Southern Nevada Power accounts over 3,500 kWh per month with billing demand up to 299 kW sit on LGS-1, with a Facilities Charge of $4.60/kW plus a Demand Charge of $5.48/kW effective January 1, 2026. Accounts from 300 kW to 999 kW use LGS-2; 1,000 kW and greater use LGS-3. Optional TOU versions shift demand billing to summer on-peak hours.
Can a Nevada cultivator shop for a competitive electricity supplier?
Not unless the facility averages 1 MW of annual load and completes a PUCN-approved NRS 704B exit with Distribution Only Service from NV Energy. The CCB lists 103 active cultivation licenses, and most single-building grows fall well under the megawatt threshold.
How does Nevada's dry climate change HVAC design?
Statewide normals average 2,166 cooling degree days with very low ambient humidity, so outside air is rarely a latent-load problem. Sealed rooms still generate transpiration moisture, but the dominant design issue is sensible cooling capacity and summer peak kW, not dehumidification of ventilation air.
When does NV Energy's summer on-peak TOU window run?
On optional southern TOU schedules, the demand charge concentrates in summer on-peak hours from June 1 through September 30, 3:01 p.m. to 9 p.m. daily. A grow that keeps full lighting load in that window will likely set its billing demand there.
Are there NV Energy rebates for grow lighting?
PowerShift Business Energy Services lists no prescriptive horticulture measure. Grow lighting would go through the custom incentive track with verifiable savings documentation. Instant Discount may apply to eligible DLC-listed LED products purchased through participating distributors.
Does battery storage make sense for a Clark County grow?
NV Energy's commercial storage incentive pays higher tiers for TOU-rate customers and can cap at 70 percent of installed cost for systems from 100 kW to 1,000 kW. Shaving summer on-peak demand during the 3:01 to 9 p.m. window is the primary use case for an indoor facility on optional TOU.
Related reading
- Nevada Cannabis Energy: NV Energy Rates, 704B Exit Rules, and Desert Grow Power Costs
Nevada cannabis power: NV Energy bundled service, NRS 704B for 1 MW loads, 9.83 cents commercial average, summer TOU peaks, 103 cultivators.
- Nevada Commercial Electricity Rates for Cannabis Facilities: NV Energy Classes, TOU Peaks, and EIA Benchmarks
Nevada commercial power at 9.83 cents/kWh vs. the U.S. average, NV Energy LGS and GS delivery classes, summer TOU on-peak demand, and bundled DEAA context.
- NV Energy for Cannabis Facilities: LGS Schedules, Summer TOU, Distribution Only Service, and PowerShift Rebates
NV Energy cannabis billing: Nevada Power vs Sierra Pacific classes, summer TOU on-peak demand, 704B delivery-only service, storage incentives.
- How to Leave NV Energy Bundled Service in Nevada: NRS 704B, TOU Schedules, and Cannabis Facility Options
Nevada cannabis power options: NRS 704B exit for 1 MW loads, TOU rate election, PowerShift incentives. No general supplier switching.
- California Cultivation Facility Energy: Title 24 Grow Lighting, Demand Charges, and CCA Rates
What a cannabis grow pays for power in California: Title 24 lighting rules, PG&E, SCE and SDG&E demand classes, rebates, and a worked cost example.
- Texas TCUP Cultivation Facility Energy: Low-THC Grows, ERCOT Supply, and Oncor 4CP Demand
What a Texas Compassionate Use cultivation site pays for power: 2,809 cooling degree days, Oncor 80% ratchet, 4CP transmission, and REP contract choice.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- HVAC Sizing for Cannabis Grow Rooms
How to turn lighting watts into cooling tons, why latent load is half the problem in a flower room, what oversizing costs, and how HVAC drives demand charges.
- LED vs. HPS Grow Lighting: Energy Cost Comparison
Cited efficacy for double-ended HPS and DLC-listed LEDs, the heat-load difference, a worked cost comparison per 1,000 sq ft, and how rebates change payback.
- On-Site Solar + Battery Storage for Grow Facilities
Why a grow's roof rarely covers its load, what batteries can and cannot do for demand charges, the 48E credit's 280E problem, and what interconnection takes.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [ccb-active-license-list]List of Active Cannabis Licensees (Cannabis Establishment List, current as of 09/01/2026) — Nevada Cannabis Compliance Board. Accessed 2026-09-11.
- [nve-south-commercial-rates]Nevada Power Company d/b/a NV Energy Electric Rate Schedules for General/Commercial Customers, effective January 1, 2026 — NV Energy. Accessed 2026-09-11.
- [noaa-cag-nevada]Climate at a Glance: Nevada statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.
- [nve-storage-incentive]PowerShift Commercial Energy Storage Incentive — NV Energy. Accessed 2026-09-11.
- [nve-bes-summary]Business Energy Services program summary (PowerShift by NV Energy), January 2026 — NV Energy. Accessed 2026-09-11.
- [nrs-704b]NRS Chapter 704B: Providers of New Electric Resources (eligible customer, application, terms and conditions) — Nevada Legislature. Accessed 2026-09-11.