How your dairy farm can save money on energy costsThe energy efficiency opportunity and how dairy producers can benefit

Thursday, May 27, 2010

1

Estimated Annual Electricity Bill1

Potential Annual Energy Savings2

100 head $4,032 $403 - $1,411

135 head3 $5,443 $544 - $1,905

250 head $10,080 $1,008 - $3,528

500 head $20,160 $2,016 - $7,056

750 head $30,240 $3,024 - $10,584

1,000 head $40,320 $4,032 - $14,112

1,500 head $60,480 $6,048 - $21,168

3,000 head $120,960 $12,096 - $42,336

Why should you be interested in energy efficiency?

Notes1 Assumes 504 kWh hours per cow per year2 Based on a savings range of 10%-35% (source: EnSave) and an electricity cost of $0.08/kWh3 Industry average

Area of Operations % of Total Energy Use

Milk Cooling 26%

Ventilation 24%

Milking 18%

Lighting 17%

Electric Water Heating 5%

Other 10%

Dairy producers use an average of 504 kWh per cow per year – equal to $40.32 per cow per year1,2

Notes1 Industry average of 135 head2 Based on an electricity cost of $0.08/kWh

Over 4,000 dairy producers have already had an energy audit and have realized cost savings

“The energy audit uncovered areas of inefficiency that we didn’t know about, and I would highly recommend

that all producers take advantage of any low-cost audits available to them. Improvements include variable

speed controllers on most motors, heat recovery on milk cooling, a plate cooler, energy efficient fans and lights,

and conversion to three phase power.”

– Doug Young, Spruce Haven Farm, NY

“Through a series of updates, we have cut our members’ energy use in half and are reducing our impact on

the environment at the same time. Becoming more sustainable is helping our bottom line, which is important

during these tough economic times.”

— Anson White, United Dairymen of Arizona

“We cut our energy bill in half by installing a [variable speed drive]. Energy rebates paid for half the system, and

the energy savings paid for our portion within one year.”

— Scott Silveira, Banos Royal Farms, CA

“The site assessment gave me a lot of ideas. Even if we can’t do it all now, we have ideas for down the road.

The variable speed drive and the milk pre-cooler are our priority for now. We try to do something every year and

now we have a guide for what to work on next…lighting.”

— Kenneth A. Smith, Smith Farms, NY

4

The typical process for capturing the savings from energy efficiency

■ Audits involve a 1-3 hour on-site assessment by a trained professional

■ Audits typically cost $1,250- $3,500 The USDA, states, and/or utilities often cover most of the cost of an audit

■ Typically, a farm energy audit identifies energy and cost savings opportunities between 10%-35%, with a 1-5 year payback, depending on incentives, financing, and the type of improvement

■ The USDA REAP program can provide incentives for equipment purchases (e.g., loans, rebates), and the USDA is working on a more coordinated incentive program

5

Energy Audit

Operational Changes/

Investment in Equipment

Generate Energy and

Cost Savings

1 – 2 year payback period

10%-35% energy/cost savings

1 2 3

Can your farm benefit from an energy audit?

Do you have a vacuum pump variable speed drive in your milking system? (Y=0, N=1)  

Do you have a plate cooler in your cooling system (used to cool the milk using ground water)? (Y=0, N=1)

 

Do you have scroll compressors in your bulk tanks? (Y=0, N=1)  

Will you like to upgrade to energy efficiently lighting (if you have incandescent lights, metal halide lamps inside the barn, or T12 lighting throughout the barn?(Y=1, N=0)

 

Do you have Compressor Heat Recovery? (Y=0, N=1)  

Are you interested in replacing circulation fans in your barn with more efficient fans? (Y=1, N=0)  

Are you interested in replacing your existing boiler or hot water heater with a biomass boiler? "or "Are you interested in replacing an existing heater that has storage tank with an instant hot water heater? (Y=1, N=0)

 

Are you interested in replacing your existing chiller (if applicable)? "or" Is your chiller more than 20 years old? (Y=1, N=0)

 

Total

6

If your score is greater than 3, you may benefit from an energy audit (see next page)

Call EnSave for a free consultation, or fill out the survey below

Dairy Milking and Cooling Questionnaire

Courtesy of

1-800-732-1399

How much money could your farm potentially save?

■ NRCS Energy Estimator for Animal Housing: http://ahat.sc.egov.usda.gov/

7

Sample

8

Sample

9

Sample

10

Potential annual savings of $3,372

Sample

How can you sign up for a low-cost energy audit for your farm?

■ Cost-share audits can come from one or more sources:

USDA– Natural Resource Conservation Service

– Agricultural Energy Management Plans (AgEMPs) – contact your local NRCS office for more details: http://offices.sc.egov.usda.gov/locator/app?agency=nrcs

– Rural Development– RD funds state, county, municipality, local utility audit programs– Contact your RD office for more information:

State programs– E.g., Focus on Energy (WI), NYSERDA (NY)– Contact your state’s energy or environment office for more details

Utility programs– Contact your local utility provider and ask about their energy audit program

11

Most common energy conservation measures on dairy farms

■ The most common energy conservation measures on dairy farms include:

Variable speed drive vacuum pumps Plate milk precoolers Energy efficient lighting Refrigeration heat recovery

■ For more ideas on energy efficiency, visit the Best Practices section of USDairy.com

http://www.usdairy.com/sustainability/BestPractices/Pages/Bestpractices.aspx#Milk%20Production

12

Source: North East Agriculture Technology, Corp., http://www.mainerural.org/energy/fieldguide/dairyfarms.pdf