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Expert Insights: Maximizing ROI with LED Lighting in Controlled Environment Agriculture

Featuring Jordan Goulet, General Manager, Hort Americas Canada

In this new edition, we proudly present an exclusive interview with Jordan Goulet, General Manager of Hort Americas Canada. With years of hands-on expertise in horticultural lighting, Jordan has guided countless commercial growers through the complexities of adopting LED technology. We thank Jordan for sharing his expert insights on optimizing ROI, navigating energy incentives, and the future of lighting innovation in controlled environment agriculture.

As commercial producers face increasing pressure to optimize crop quality and operational efficiency, understanding the true ROI of LED lighting is more important than ever. Jordan’s perspective links industry trends with actionable advice, setting the stage for our first section: the often-overlooked factors that can determine the success of artificial lighting investments.

1. Overlooked Factors in LED Lighting ROI

Jordan Goulet highlights three critical, yet often overlooked, factors that can make or break the return on investment (ROI) for commercial growers considering artificial lighting systems:

  • Learning Curve for Adapting Cultivation Practices
    Transitioning from high-pressure sodium (HPS) to LEDs isn’t just a fixture swap. LEDs emit less radiant heat, so growers must adjust irrigation, temperature, and CO₂ management. For example, lettuce growers may need to recalibrate humidity settings to prevent plant stress. Failing to plan for this learning curve can delay optimal yields and reduce ROI. Training or consulting with lighting specialists is essential for a smooth transition.

  • Warranty and Maintenance Costs
    While LEDs boast longer lifespans (50,000+ hours) than HPS, warranty coverage varies widely. A robust warranty covering diodes and drivers can save significant replacement costs. Growers should factor in the actual cost of ownership, including the financial stability of the manufacturer, to avoid unexpected expenses that erode ROI.

  • PPFD Installed Capacity vs. Spectrum
    Many growers focus on spectral tuning but overlook the importance of installed Photosynthetic Photon Flux Density (PPFD), the light intensity available for photosynthesis. Insufficient PPFD limits yields, regardless of spectrum quality. Prioritizing fixtures that deliver high PPFD tailored to specific crops ensures maximum productivity and efficiency.

2. Real-World Success: Strategic Lighting Decisions

A standout case from Quebec illustrates how strategic lighting can transform outcomes. Abri-Végétal, a vegetable grower with a low-ceiling greenhouse, faced challenges installing traditional top lighting. By adopting LED interlighting—placing fixtures between plant rows—they delivered light directly to the middle and lower canopy. This innovative approach improved fruit development and acted as a heat pipe, boosting yield per square meter by over 40% compared to no supplemental lighting.

The strategy also avoided costly greenhouse modifications, and vendor support was used to secure grants and accelerate ROI. This case underscores the value of creative fixture placement and leveraging expert partnerships for rapid, sustainable returns.

3. Navigating Energy Prices and Rebates

Rising electricity costs and rebate programs are reshaping lighting investment decisions in Canada:

  • Energy Efficiency and Rate Strategies
    With peak electricity rates in Ontario up to three times higher than off-peak, energy-efficient LEDs and intelligent scheduling (such as continuous or dimmed lighting during cheaper hours) are increasingly attractive.

  • Maximizing Rebates
    Programs like Save on Energy and Hydro Quebec can offset 20–50% of LED installation costs, but eligibility varies by region. Jordan advises growers to partner with local vendors who understand the regulatory landscape and can assist with grant applications. Factoring rebates and energy rates into ROI calculations ensures growers make informed, profitable investments.

4. Current Role of Spectrum Customization


Jordan Goulet explains: “The industry has moved beyond ‘one-size-fits-all’ lighting, with tunable LEDs enabling adjustments for specific crop stages (e.g., blue for vegetative growth, red for fruiting). For high-value crops like cannabis or ornamental, spectral tuning can enhance quality (e.g., cannabinoid content), and potentially justify costs.”

However, simpler systems with proven spectra often offer better ROI for commodity crops like lettuce due to lower costs. Commercial trials, such as those showing 5–10% yield improvements in tomatoes with red-heavy spectra, suggest benefits. However, complex multi-channel systems may not be cost-effective without clear evidence and proof of reliability time. It is also good to explore less costly strategies with other variables that might end up procuring the desired outcome with much less expensive actions (i.e., drought stress or inoculants).

Source photo: Colin Maynard on Unsplash

5. Future Innovations Impacting Lighting ROI

Jordan sees three major innovations poised to impact ROI in the next 2–3 years:

  • Affordable, High-Precision Sensors
    Real-time monitoring of light, temperature, humidity, and CO₂ will enable data-driven lighting decisions and automation, reducing energy costs by up to 20%.

  • Intelligent Climate Control Systems
    Predictive algorithms will integrate lighting with environmental controls, optimizing schedules for maximum photosynthesis and energy savings, potentially boosting ROI by 10–15%.

  • Durable, Reliable Fixtures
    Advances in LED technology will deliver fixtures with minimal output degradation and readily available replacement parts, reducing maintenance costs and downtime. However, manufacturers' financial stability remains crucial for honoring long-term warranties and ensuring ongoing support.

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Conclusion

Jordan Goulet’s expert insights reveal that maximizing ROI with LED lighting requires more than choosing the right fixture. Success depends on understanding the learning curve, factoring in long-term costs, prioritizing PPFD, leveraging incentives, and embracing innovation.

As technology and market dynamics evolve, growers who stay informed and partner with knowledgeable vendors will be best positioned to thrive in the future of controlled environment agriculture.

We want to thank Jordan Goulet for sharing his expertise and helping growers achieve higher yields and profits.


Complementary sources:

David Hawley, PhD, released a notable publication on LinkedIn in February 2023 titled “THE PARADOX OF EXPERTISE: THE MORE YOU KNOW ...” In this article, Dr. Hawley discusses the evolution of Fluence’s research and messaging regarding the cannabis light spectrum, specifically comparing the effects of their broad white R4 spectrum to other spectra (R6, R8, R9B) on cannabis yield.

Jeong, M.-J., et al. (2025). Lowering light intensity while extending photoperiod at a constant daily light integral synergistically interacts with warm temperature to enhance leaf expansion and crop yield in lettuce without far-red light. Frontiers in Plant Science, 16, Article 1529455. https://doi.org/10.3389/fpls.2025.1529455

Past publication on LinkedIn from Jordan Goulet: