Why is Energy Efficiency So Crucial for the Manufacturing Sector?

Note: The August 29th deadline is approaching for manufacturers with facilities in Pennsylvania Environ Energy can help you apply to get your share of nearly $400M in state funds for industrial energy efficiency upgrades, decarbonization projects, and energy audits Read on to learn more and click here. 

Policy around achieving greenhouse gas (GHG) emission reductions may come and go, but achieving solid return-on-investment (ROI) through the thoughtful study and recommendation for energy efficiency upgrades will always be a best practice strategy for energyintensive building owners, like manufacturers. 

The “Why” on Making the Pivot Now to Pursue Efficiency Projects: 


  1. Cost Reduction – Manufacturing is energy-intensive, and improving efficiency helps reduce energy costs, which can significantly impact overall production expenses. 
  2. Improved Competitiveness – Lower energy costs mean manufacturers can offer more competitive pricing or reinvest savings in innovation and expansion. 
  3. Regulatory Compliance – Many states have energy efficiency regulations and carbon emission targets. Meeting these requirements helps avoid fines and enhances compliance. 
  4. Sustainability Goals – Many companies aim to reduce their environmental footprint. Energy efficiency reduces greenhouse gas emissions, making operations more sustainable. 
  5. Increased Reliability – More efficient energy use reduces strain on equipment and the electrical grid, decreasing the likelihood of downtime due to power failures or maintenance issues. 
  6. Enhanced Corporate Image – Consumers and stakeholders increasingly value sustainability. Manufacturers that prioritize energy efficiency can strengthen their brand reputation and attract eco-conscious customers and investors. 
  7. Access to Incentives – Many governments and organizations offer financial incentives, such as tax breaks or grants, for energy-efficient upgrades, which can offset investment costs. 
  8. Improved Workplace Conditions – Efficient energy use can lead to better lighting, ventilation, and temperature control, enhancing employee productivity and safety. 

Let’s Get Back to #7, “Access to Incentives” 

Did you know that the State of Pennsylvania is actively promoting energy efficiency among manufacturers through several initiatives aimed at reducing operational costs, enhancing competitiveness, and minimizing environmental impact? 

Energy Assessments for Small to Mid-Size Manufacturers 

Just this year, the Pennsylvania Department of Environmental Protection (DEP) launched a program offering reduced-cost Level II ASHRAE energy audits to small and mid-sized industrial facilities. These audits provide a comprehensive analysis of energy usage and recommend efficiency improvements, complete with cost-benefit evaluations and implementation steps. To qualify, facilities must have gross annual sales below $250 million and fewer than 500 employees at the plant site. The program aims to support up to 200 facilities, with a focus on disadvantaged businesses or those located in Environmental Justice areas. 

Complementing the energy assessments, RISE PA is a $396 million statewide grant program funded through the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grants under the Inflation Reduction Act of 2022. This initiative offers grants for decarbonization projects at industrial facilities, targeting reductions in greenhouse gas and co-pollutant emissions. Eligible projects include energy efficiency upgrades, industrial electrification, adoption of low-carbon fuels, on-site renewable energy installations, and carbon capture technologies. RISE PA underscores Pennsylvania’s commitment to reducing emissions from the industrial sector, which accounts for over 30% of the state’s total greenhouse gas emissions. 

Connect with Environ 

Let Environ’s Energy Advisors help you draft actionable industrial energy efficiency plans for facilities using state funds to offset costs. Email us at info@environenergy.com.

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