Is Hydroponics Expensive? A Comprehensive Cost Analysis

If you’re a gardening enthusiast, you might be inquisitive about the cost of setting up a hydroponic system. Some horticulturalists would say hydroponics is expensive. But in reality, is hydroponics expensive? 
 
The hydroponic farm start-up cost may indeed make you feel that hydroponic is more expensive than traditional farming. But if you exclude the initial set-up cost of the hydroponic systems, it’s not that expensive. Also, this soilless cultivation system's higher yields and efficiency make it worth practicing.  
 
Most importantly, the cost of any hydroponic farming depends on its size. If you are just planning to grow some small houseplants and leafy green vegetables in your yard, it will take a very small amount of your budget. 
 
Dear home growers and hobbyists, if you’re curious about the hydroponics cost, then this blog is for you. Here we’ll analyze the expenditure of hydroponics so that you can estimate a budget before starting your own hydro farm.

Hydroponic Farm Start-Up Cost 

The factor that determines the initial investment of a hydroponic system is its size. For some DIY hydroponic farming or passive hydroponics, you won’t have to pay any price. But normally small hydroponic systems can cost from $100 to $500.  
 
But if you are up for setting up a medium-sized hydroponic system, then it may cost you several hundred dollars. In case you’re planning to grow hydroponic plants commercially, it would require a large hydroponic farming system. A large hydro system costs several thousand dollars or more depending on the size and type of hydroponic system.   
 
However, to calculate the initial investment, bear in mind the following factors:  

• Hydroponic system type and complexity 
• Size of operation 
• Grow Lights 

Cost of Small Hydroponic System

To set up small hydroponic farming, you’ll need a growing medium, grow lights, nutrient solution, water pump and aeration, pH and EC meters, Temperature and humidity controller, plants, and seeds.  
 
The following table demonstrates a roughly estimated cost for a Small hydroponics system:  

Medium Size Hydroponics System Cost

To install a medium-tech hydroponics system can cost you around $500 to $1000. With this budget, you should go for a system that is ready to be installed. You can also have better lighting or remote-controlled water flow within this estimated budget.  
 
The table given below shows a roughly estimated cost for a medium-sized hydroponic system:  
 

Large Hydroponics System Cost

Large-size hydroponics systems need more lights, aeration, a big reservoir of nutrient solutions, a better-growing medium, and most importantly you need to hire professionals who have expertise to handle a large hydroponic system. It can roughly cost $5000 to $10000.  
 
The following table will provide you with a roughly estimated expenditure for installing a large hydroponic system:   

 
This is all about the start-up cost of hydroponics. However, there are other expenditures that are associated with operational costs. In the following section, we will discuss the operational cost of hydroponics. It will help you to find your answer to the question: is hydroponics expensive? Or Is hydroponics more expensive than traditional farming? 

Operating Cost of Hydroponics

You already know how much does hydroponics cost. But there is more to add to your budget if you’re looking forward to installing a hydroponics system. As hydroponics gardening needs regular maintenance and monitoring, you’ll need to pay for operational expenses.    

The following are the major operational costs of hydroponics:  

1. Energy Consumption  
2. Nutrient Solutions/Fertilizers  
3. Labor Hiring Cost
4. Seeds  
5. Maintenance
6. Packaging and transportation 

Energy Cost: 

The simple and passive hydroponic system doesn’t need any electricity. You can easily grow hydroponically outdoors with natural light. However, if you’re growing indoors, or your system needs artificial lights, it will cost you electricity. Besides, the air and water pump also consume electricity. Of note, on average, every square foot of your hydroponic system needs around 32 watts of electricity.  

Nutrient Solution, Seeds, and Maintenance Cost: 

Your hydroponic system will need ongoing supplies. For instance, you’ll be required to refill the reservoir with nutrient solutions per cycle. Also, you need to buy fertilizers and seeds for each cycle of the system. Your system will need regular maintenance too. For this, you may need to purchase various plant care tools and adjustment kits. 

Labor Hiring Cost: 

For any indoor farms, labor hiring cost is the highest operational expense. A small hydroponic farm is likely to spend around 57% of its budget on labor.    

Packaging and Transportation: 

You’ll need a budget for packaging and transportation during the harvesting process. As hydroponics is space efficient one of the advantages of hydroponics is to grow crops locally, so it doesn’t need huge investment in transportation.

Hydroponic vs. Conventional Soil-Based Farming Cost Comparison

Growing crops hydroponically is more expensive than conventional soil-based farming. The cost of hydroponics is higher due to the initial investment, and ongoing operational expenses. On the other hand, soil-based cultivation doesn’t need any extra tools or infrastructure.  
 
However, though hydroponics is more expensive than traditional farming, it is mostly preferred by home growers and commercial growers due to its faster growth and increased yields. Besides, hydroponically produce is fresher and growers get higher prices for their crops compared to soil-based produce.  
 
Besides, the land and water usage in hydroponics is lesser than soil-based gardening. That is why urban farmers can easily set up hydroponics within limited space. Overall, the higher cost associated with hydroponics won’t matter if you consider the future possibility and outcome of hydroponics farming.   
 

Is Hydroponic Farming Cost-Effective?

  
Hydroponics farming can be cost-effective, especially in places with extremely cold climates like Canada, the UK, and the United States, where traditional farming struggles due to the freezing weather. 
 
Hydroponics can thrive in controlled indoor environments which makes it a smart choice in these chilly regions. It’s also a great solution in desert countries like Israel, Saudi Arabia, and Oman. These places often have water scarcity. So, using hydroponics can save precious water for drinking and reduce the need to import food from elsewhere.   
 

Is Hydroponic Farming Profitable?

  
Hydroponics farming can be profitable. However, it may seem hard to make a profit due to initial set-up costs and operational expenditures. Using a hydroponics system, growers can generate revenue of 21.5 dollars per square foot. Furthermore, vertical farming tends to earn even more at 41.16 dollars per square foot.  
 
Besides, growing hydroponically offers 40 to 50 percent faster growth and can produce 30 percent more than soil-based traditional gardening. If you produce leafy greens and microgreens in a hydroponic system, you may achieve the highest 40% profit margins.   

What Are the Most Profitable Hydroponic Crops?

  
Leafy greens like lettuce are the most profitable crops due to their low operational cost. Besides, you can also grow basil or ginseng which are also considered the most profitable hydroponic plants.  
 
Here is a list of profitable plants to grow hydroponically:    

1. Cilantro ($8 per pound)  
2. Basil ($15 Per pound)  
3. Dill ($17 Per Pound) 
4. Mint Leaves ($18 per pound) 
5. Ginseng ($500 to $600 per pound) 
6. Cannabis ($1025 per pound)  

Frequently Asked Questions (FAQs)

  
Here are some frequently asked questions regarding the cost of a hydroponics system. We’ve answered these queries for hydro growers and hobbyists so that they can get more insight.  

Is hydroponics cheaper than soil?

  
No, hydroponic isn’t cheaper than soil-based gardening. it’s quite expensive compared to traditional farming methods. The initial investment in the growing medium, growing system, grow lights, water and air pump, and many other tools make it an expensive farming choice. However, the long-term profits and benefits of hydroponics are greater than soil-based gardening.  

How much does one hydroponic system cost?

The Hydroponic farm cost depends on the size and the complexities of the system. If you want to install the high-tech hydroponic system on a large scale, then it may cost you around 5000 to 10,000 dollars. However, a passive hydroponic system DIY can also be set up without investing a single penny.   
 

Final Verdict:

We’ve already answered this question: Is hydroponics expensive? Now hydro hobbyists and growers may become curious to know whether a hydroponics system is worth it or not.  
 
In short, the hydroponics system is really worth it. It may initially seem like a high investment, but the Return on Investment (ROI) from hydroponic farming is much higher than any soil-based farming. So, if you live in an urban area or have a little yard, you may surely implement hydroponic farming techniques.