Top 5 energy-saving hacks for agribusinesses

The rising cost of energy is a challenge for agribusinesses across Australia. With high seasonal demand and slim profit margins, efficient energy use isn't just a nice-to-have, it's essential. By taking informed action, agribusiness owners can unlock significant savings while improving operational sustainability.

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Here are practical, actionable strategies to help you slash your agri energy bills and increase efficiency in your operations:
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1. Shop around for competitive energy rates

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The energy retail market is highly competitive, and agribusinesses can benefit from this dynamic. Shopping around and negotiating with suppliers ensures you’re getting the best rates and terms for your specific energy needs. Here’s how you can optimise your energy procurement process:
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• Compare energy suppliers regularly. Use online platforms or energy brokers to access pricing from various providers.  
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• Negotiate with your current supplier. If you find lower rates elsewhere, use them as leverage to renegotiate your existing contract.  
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• Customise your energy contract. Work with a provider who understands agribusinesses to tailor rates that consider your peak operational periods.  
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By actively procuring competitive energy agreements, you can avoid paying unnecessarily high rates that eat into your bottom line.
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2. Reduce peak power use

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Electricity costs aren’t just about how much you use; they also depend on when you use it. Electricity during peak periods is often significantly more expensive. Reducing energy use during high-demand times can result in substantial savings:
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• Identify peak and off-peak times for your energy consumption. Smart meters or interval data from your supplier can help you pinpoint patterns.
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• Shift energy-heavy activities—such as irrigation, processing, or cooling—to off-peak hours when rates are lower.
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• Where possible, schedule automated systems to operate during cheaper times of the day.
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Reducing peak power use not only lowers your energy costs but also helps optimise your overall energy efficiency, reducing demand charges which are a premium cost for accessing energy during high-demand times.
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3. Optimise demand charges

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Demand charges are additional fees levied on energy users for the maximum amount of electricity they draw from the grid at any given point. These charges often contribute significantly to high energy bills, particularly for energy-intensive agribusinesses. Here’s how you can tackle them:
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• Work with energy experts to identify opportunities to manage and reduce your peak demand loads.
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• Spread energy usage across different times of the day to balance your grid dependency.
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• Consider behavioural changes like staggering machinery operations to prevent all high-demand equipment running simultaneously.
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By understanding and managing consumption spikes, you can drastically lower demand charges and reduce your exposure to overpriced energy fees.
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4. Utilise Power Factor Correction (PFC)

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For many farms and agribusiness operations, inefficient energy use can drive up costs through low Power Factor (PF) penalties applied by utility companies. A low PF indicates reactive power usage—essentially energy lost in the system. Addressing this inefficiency is simpler than it seems:
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• Measure your Power Factor regularly. Smart meters or energy audits will help identify inefficiencies.  
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• Install Power Factor Correction equipment. These devices optimise your PF, reduce wasted energy, and lower penalties from your utility provider.
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• Work with an energy consultant to evaluate your operations and ensure they’re performing at peak efficiency.
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Implementing PFC solutions can significantly improve your energy use for vital equipment like irrigation pumps, dairy coolers, and machinery.
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5. Generate renewable energy on-site

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Harnessing renewable energy is a game-changer for agribusinesses. Farms are uniquely positioned to benefit from solar or wind energy due to their access to space and consistent energy demands. On-site energy generation can reduce dependency on grid power and provide long-term cost savings.
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• Install solar panels to meet daytime energy needs, particularly for cooling or processing facilities.
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• Introduce battery storage systems to store excess energy for use during peak periods or at night.
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• Take advantage of government grants and renewable energy incentives that can offset installation costs.
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Farm operations with renewable energy systems drastically reduce their exposure to energy price volatility while contributing to a more sustainable future.

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Need expertise?

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Australians in agriculture know that every dollar saved is another step toward sustainable growth. By implementing these straightforward energy-saving strategies, you’ll be well-positioned to lower your bills and optimise your energy use without compromising productivity.
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Take control of your energy today. Whether it’s negotiating competitive rates, adopting renewable energy, or addressing demand charges, the key is to start small and scale your efforts as you uncover bigger opportunities. Need expertise? Partner with energy experts like Zembl to guide you in every step of the process.
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Simply fill in our form below to get started.
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Click here if you want to download our full Agribusiness Energy Guide.

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