Long aisle between multi-tier racks of leafy greens lit by pink LED grow lights in an indoor vertical farm

Vertical farming · The complete guide

Vertical farming: the complete guide

Vertical farming grows crops in stacked layers indoors or under a roof, with the roots in water or mist instead of soil and the light, heat and humidity controlled. This guide covers every part of it, from the systems and crops to the costs, the energy bill and the farms that failed, with sources for every figure.

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What vertical farming is

Vertical farming is a way of growing plants in layers stacked one above the other, usually inside a building, a shipping container or a greenhouse. The plants grow without soil: their roots sit in a nutrient solution (hydroponics), are sprayed with a nutrient mist (aeroponics), or are fed by water from fish tanks (aquaponics). Light comes from LED fixtures, from the sun, or from both, and the temperature, humidity and carbon dioxide are held at levels that suit the crop.

Because every layer adds growing area without adding land, a vertical farm produces far more per square metre of floor than a field, and it does so all year. The price of that control is electricity. Lighting and climate control make vertical farming one of the most energy-intensive ways to grow food, which is why it suits fast, high-value crops such as salad greens, herbs, microgreens and strawberries, and not staples such as wheat or rice.

The term goes back to 1915, when the geologist Gilbert Ellis Bailey used it as the title of a book. The modern idea of multi-storey indoor farms comes from Dickson Despommier's class at Columbia University in 1999.

Term first used
1915
Gilbert Ellis Bailey's book Vertical Farming
Electricity per kg of lettuce
10–18 kWh
Current vertical farm benchmarks; lighting uses 65–85% of it
Power cost per kg in Maharashtra
₹72–182
10–18 kWh × ₹7.21 (agriculture, others) or ₹10.11 (small commercial), MERC 2026-27
Water per kg of lettuce
≈20 L vs ≈250 L
Hydroponic against field-grown, Barbosa et al. 2015

How it works

Five parts of every vertical farm

  1. 01

    The growing system

    Racks, towers or A-frames that hold the plants and deliver water and nutrients to the roots: NFT channels, deep water culture, ebb and flow, aeroponic misting or aquaponics.

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  2. 02

    Light

    LED fixtures sized to the crop's daily light need, measured as PPFD and DLI. Lighting is the largest single use of electricity in an indoor farm.

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  3. 03

    Climate

    Air conditioning, dehumidifiers, fans and carbon dioxide dosing that remove the heat from the lights and hold temperature and humidity steady.

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  4. 04

    Water and nutrients

    Treated water and a balanced nutrient solution, kept at the right EC and pH for each crop and stage, and recirculated to save water.

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  5. 05

    Automation and data

    Sensors, controllers and, in large farms, moving racks, robots and cameras that cut labour and keep conditions consistent.

    Read more →

Part 2 of 7

Systems and technology

Hydroponics, aeroponics, aquaponics, containers, lights, climate, nutrients and automation.

Calculator

Yield and electricity for your space

Enter the floor area and number of layers. The figures come from published benchmarks, listed under the calculator, and are a starting point for a proper feasibility study.

Crop
Electricity rate, ₹ per unit
Growing area
232 m²
50% of the floor × 5 layers
Output a year
16,490 kg
Range 10,916–26,710 kg
LED load
23.2 kW
100 W per m² of growing area
Electricity a year
1,80,851 kWh
About 11.0 kWh per kg
Power bill a year
₹13.0 lakh
At ₹7.21 a unit, before fixed charges and duty
Power cost per kg
₹79
Electricity only, at the typical output
How this is worked out
  1. Growing area = floor area × 0.0929 (sq ft to m²) × 0.5 (share of floor under racks) × layers = 232 m².
  2. Output = growing area × 47–115 kg per m² a year (typical 71), from published vertical farm benchmarks.
  3. LED load = growing area × 100 W per m² = 23.2 kW; lighting = 23.2 kW × 16 hours × 365 days = 1,35,638 kWh.
  4. Lighting is 65–85% of a farm's electricity; at 75%, the total is 1,35,638 ÷ 0.75 = 1,80,851 kWh.
  5. Power bill = 1,80,851 kWh × ₹7.21 = ₹13,03,937. Variable charge only. Fixed charges, electricity duty and fuel adjustment are extra. Tariffs change every year; check your DISCOM's current schedule.

These are estimates from averages. A real farm's figures depend on the crop, the light level, the building, the climate and how well it is run. Maharashtra lists indoor vertical farming under its agriculture (others) tariff; confirm your category with the DISCOM in writing.

Sources:

Benefits and limits

Why grow vertically, and what it costs you

A vertical farm uses a fraction of the water of a field, because the nutrient solution is recirculated and the moisture the plants breathe out is recovered by the air conditioning. It needs little or no pesticide in a closed room, it is not exposed to rain, heat waves or hail, and it can sit next to the buyers in a city, so produce reaches them within a day.

The limits are the capital cost and the running cost. Racks, LEDs, air conditioning and controls cost several times as much per square metre as a polyhouse, and the electricity bill is the largest running cost. The crop range is narrow: leafy greens, herbs, microgreens and a few fruiting crops pay their way; staples do not.

Seedlings on a grow tray in front of racks of LED grow lights in an indoor farm

The numbers

Energy decides whether a vertical farm pays

Current benchmarks put lettuce from a fully indoor vertical farm at about 10 to 18 kWh of electricity per kilogram, most of it for lighting. At the Maharashtra rate for a small commercial connection in 2026-27, ₹10.11 per unit (₹8.51 energy charge plus ₹1.60 wheeling, before fixed charges and duty), that is 10 × ₹10.11 = ₹101.10 to 18 × ₹10.11 = ₹181.98 per kilogram in electricity alone. Maharashtra lists indoor vertical farming under its agriculture (others) tariff, ₹7.21 a unit in 2026-27, which brings the range down to 10 × ₹7.21 = ₹72.10 to 18 × ₹7.21 = ₹129.78, still before labour, seeds, nutrients, packaging and the cost of the building.

That is why the farms that work pick crops that sell for well above that figure, sell to buyers who pay for freshness and consistency, and cut the power bill with efficient LEDs, sunlight where possible and rooftop solar. The calculator on this page runs the same arithmetic for your space.

Vertical growing panels of lettuce between tall racks in an indoor farm

Crops

What grows well in a vertical farm

Lettuce and other salad greens, basil, mint and coriander, and microgreens are the core crops: they are short, fast and sold fresh at a good price. Strawberries and cherry tomatoes can work with more light and more care, and are grown in taller single-layer rooms or greenhouses more often than in stacked racks. Saffron is grown indoors on a small scale in India, but yields and claims vary widely, and it is not the easy income it is often sold as.

India

Vertical farming in India

India's vertical farms are mostly hydroponic farms growing greens and herbs near the large cities, selling to hotels, restaurants, quick-commerce apps and households. Heat in summer, humidity in the monsoon and the cost and reliability of power are the main problems to design for, and many Indian growers use polyhouses with hydroponics, or sunlight with LED top-up, rather than fully indoor rooms.

Government support exists for protected cultivation and for hydroponic and aeroponic projects above a minimum size, through the National Horticulture Board and state horticulture departments. The terms change, so confirm them with the scheme's current guidelines before you plan around a subsidy.

Which one do you need

Vertical farm, vertical garden or home tower

A vertical farm grows food to eat or sell. A vertical garden, also called a green wall or living wall, is planted for looks, cooling and a better lobby or facade, and grows ornamental plants rather than crops. A home tower is a small vertical hydroponic unit for a balcony, terrace or kitchen that grows greens and herbs for one household. Schools, offices, hotels and cafés often use a few towers or a small room farm as a teaching or showcase space.

Questions

Vertical farming questions, answered

What is vertical farming?

Vertical farming is growing crops in stacked layers, usually indoors, without soil. Roots are fed by a nutrient solution (hydroponics), a nutrient mist (aeroponics) or water from fish tanks (aquaponics), and light, temperature and humidity are controlled so crops grow all year.

Is vertical farming profitable in India?

It can be, for the right crops and buyers. Electricity alone costs roughly ₹72 to ₹182 per kilogram of lettuce at Maharashtra's 2026-27 rates, depending on whether the farm is billed at the agriculture or the commercial tariff, so profitable farms grow high-value, fast crops, sell to buyers who pay for freshness, and cut power use with efficient LEDs, sunlight and solar. Many projects have failed on energy and sales, not on growing.

How much does a vertical farm cost to set up?

The cost depends on the floor area, the number of layers, LED or sunlight, the climate control and how much is automated. A fully indoor farm costs several times as much per square metre as a polyhouse. A feasibility study with a costed design is the only reliable way to price a specific project.

How much electricity does a vertical farm use?

Current benchmarks put indoor vertical farm lettuce at about 10 to 18 kWh per kilogram, with 65 to 85 per cent of that used by the lights and most of the rest by air conditioning. Newer LEDs and better control can bring it down.

What is the difference between hydroponics and vertical farming?

Hydroponics is a way of feeding plants: roots in a nutrient solution instead of soil. Vertical farming is a way of arranging them: in stacked layers. Most vertical farms use hydroponics or aeroponics, but a hydroponic farm can also be a single layer in a greenhouse.

Which crops grow best in a vertical farm?

Lettuce and other salad greens, herbs such as basil and mint, and microgreens grow best because they are short, fast and valuable. Strawberries and cherry tomatoes are possible with more light. Staples such as wheat, rice and potatoes are not viable indoors because of the electricity they would need.

Is a vertical garden the same as a vertical farm?

No. A vertical garden or green wall grows ornamental plants on a wall for looks and cooling. A vertical farm grows food crops in stacked layers under controlled conditions. The words sound alike, but the systems, costs and purpose differ.

Does Garden & Acre build vertical farms?

Yes. Garden & Acre plans and builds vertical farms for rooftops, warehouses, campuses, hotels and schools, offers consulting from feasibility to training, and installs hydroponic towers for homes and cafés. Projects are priced in a written proposal after a call.

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