Greenhouse vs. Indoor Plant Factory: Which Model Suits Your Commercial Project?

For investors planning a commercial-scale hydroponic facility, the first strategic fork in the road is choosing between a Smart Greenhouse and a fully enclosed Indoor Plant Factory (Warehouse Farm).

Both models use Lyine’s hydroponic systems (NFT, Towers, or Dutch Buckets), but their economic structures differ fundamentally. This guide compares the Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) of both models to help you make an informed decision.

1. The Smart Greenhouse Model

Definition: A structure that relies primarily on sunlight, supplemented by artificial lighting and climate control.

• Best For: Tomatoes, Cucumbers, Peppers, and large-scale leafy greens.
• CAPEX (Construction): Lower ($100 - $300 per m²). The structure is lighter, and sunlight is free.
• OPEX (Running Cost): Moderate. Energy bills are lower because you don't need 100% artificial light.
• Limitation: In extreme climates (e.g., Saudi Arabia summers or Canadian winters), cooling or heating costs can skyrocket.

2. The Indoor Plant Factory Model

Definition: An insulated warehouse or container using 100% LED grow lights and HVAC systems for total environmental control.

• Best For: Microgreens, Herbs, Medical Plants, and high-value Lettuce.
• CAPEX (Construction): Higher ($1,500 - $3,000 per m²). Requires heavy insulation, HVAC, and thousands of LED fixtures.
• OPEX (Running Cost): Higher. Electricity is the biggest expense (lighting + cooling).
• Advantage: Perfect consistency. You get the exact same harvest quality 365 days a year, regardless of a sandstorm or blizzard outside.

3. Decision Matrix: Location Matters

Conclusion

There is no "better" system, only the right system for your location and crop. Greenhouse projects offer faster ROI for vine crops, while Indoor Factories provide superior security for high-margin leafy greens.

Free Project Assessment
Send us your land coordinates and crop goals. Lyine’s engineering team will provide a Climate Analysis Report and recommend whether a PC Sheet Greenhouse or an Insulated Plant Factory is more profitable for your specific site. Start your project today.