One third of the energy consumed in the United States is by the manufacturing sector. Ninety percent of the manufacturing sector are small- and medium-sized businesses (SMM) that use about half of the energy consumed in manufacturing.

Electrical demand, also known as on-site energy consumption is a rich target for SMM businesses as:

  • They tend to pay more per kWh than their larger competitors;
  • They are unlikely to have dedicated energy managers; and
  • Small energy-saving projects tend to yield a higher percentage savings.

With savings easy to come by, why have small- and medium-sized manufacturers been slow to jump on the savings bandwagon? Despite the straightforwardness of these smaller projects, there are constraints on small and medium manufacturers.

Roadblocks to implementing energy efficiency programs

Three primary obstacles stand in the way of companies implementing energy efficiency programs:

  • insufficient staff resources
  • capital costs
  • insufficient reliable information about energy efficiency opportunities

Nevertheless, overcoming these roadblocks is possible. Following are five steps to implementing small energy efficiency projects that yield big dollars in energy savings. The ROI payback period for projects is 36 months or less.

1. Research: To know how much an energy efficiency program will save, you first must find out where your energy dollars go. The way to get this information is through an energy audit of your entire facility. The audit should not restrict itself to examining only things that use energy, roofing material and doors and windows should be included as they affect energy use too.

2. Lighting: Of all the low-hanging fruit available for quick ROI, lighting is practically laying on the ground. Energy consumption decreases of up to 50 percent are possible and simultaneously remove the threat of mercury contamination quickly. High efficiency lighting and controls (such as motion detectors that turn lights on and off) are easy to install.

3. Motors and drives: The motors and drives in your SMM are responsible for nearly 70 percent of energy use. Look at replacing motors with energy-efficient ones. Based on your energy audit, find those machines where using variable frequency drives (VFD) make sense. A VFD can cut energy consumption by 30 percent, with a short seven-month ROI, in some cases.

4. Heating and cooling: Heating and cooling are areas where payoffs are often large and fast. Adding drives to condensers and modifying controls can cut HVAC costs by nearly 25 percent.

5. Electrical use: An energy audit gives you the starting point for an energy management plan. Without monitoring its results, you cannot track your success. Your overall use and costs may have gone down, but where are the savings coming from? Are drives saving more than you anticipated? Were the changes to HVAC on target? Companies offer hardware/software combinations that monitor energy use from a single computer dashboard and automatically track energy consumption, some down to each motor and lighting sections.

How to pay for these improvements

Even though these projects are the low-hanging fruit, they come with costs attached to them.

First, your local utility may offer rebates on some or all the improvements you make for energy efficiency. Check the Database of State Incentives for Renewables and Efficiency (DSIRE). This site offers a state-by-state listing by municipalities as well as statewide programs for tax incentives and rebate programs.

The Small Business Administration and the Department of Energy each offer loans for energy efficiency programs.

An energy management program can offer an immediate reduction in utility bills, decrease your plant's carbon footprint and earn your company a reputation as a good corporate neighbor. There is no downside to improving your facility's energy efficiency.