Energy conservation: Impact on the bottom line

M. Charles Gould<gouldm@msu.edu>, Michigan State University Extension - November 04, 2013

Three identical programs will be held throughout the state to help dairy farmers better understand how to reduce energy expenses.

Operating a dairy farm is energy intensive. Lights, fans, pumps and motors consume a lot of electricity. Implementing energy conservation measures (ECMs) reduce the amount of electricity used on the farm, resulting in increased profits. Dairy farmers who participate in the Energy Optimization energy efficiency program receive rebates to implement ECMs, enabling them to better manage their energy use and save money. On average, dairy farms that have implemented recommended ECMs have seen a 46 percent reduction in their energy costs. ECMs are straightforward and rebates are plentiful (see chart below).

Energy Conservation Measure	Rebate (restrictions apply)
Low-energy Livestock Waterer	$50/unit
Barn Exhaust Fan	$2 per blade inch
Barn Circulation Fan	$2 per blade inch
Commercial Electric Water Heater for Dairy Milk House	$250/unit
High Performance T8 Fluorescent Lights	$2-20 per fixture
High Bay Light Replacement (i.e., T8 or T5HO linear fluorescent lights)	$20-50 per fixture
CFL bulbs	$1-4 per bulb
LED light bulbs	$8 per lamp
Lighting Occupancy Sensors	$15-30 per sensor
Split system Air Conditioning	$10 per ton
Central Packaged Rooftop AC	$10 per ton
Variable Frequency Drives	$60 per hp. up to 40 percent of project cost (limitations apply)
Commercial Refrigeration	Varies. See non-lighting application
Compressed Air	Varies by utility.
Custom Rebates (i.e., irrigation pump speed controls, irrigation pressure reduction, efficient milk harvesting and cooling equipment, dusk to dawn outdoor lights, etc.)	$0.05 per annual kWh saved up to 40 percent of project cost (limitations apply)

Interested in learning more? Three identical programs sponsored by Michigan State University Extension and Michigan Milk Producers Association will be held throughout the state to help dairy farmers better understand how to reduce energy expenses. Dates, locations and agenda information can be found in the events section at http://msue.anr.msu.edu/topic/info/dairy. There is a $5 registration fee payable at the door. Contact Charles Gould, MSU Extension-Ottawa County, at 616-994-4547 or gouldm@msu.edu if you have questions.

This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).