Energy use on farms

Energy efficient farming achieves the same or better output by using less energy. It helps cut running costs and has less impact on the environment.

Running an energy efficient farm and supply chain can help offset rising energy costs related to:

  • heat
  • electricity
  • gas
  • liquid fuels.

There are also other cost-effective alternatives to using fossil fuels for energy generation. Some alternatives are already available, whilst others are still in development.

Greenhouse gas studies often show that energy use on farms is a small contributor of total emissions. Despite this, energy use on farms is still a large source of emissions. For many farms (like cropping, dairy and horticulture) energy use is a growing cost.

Using alternative energy sources can help to improve your energy efficiency. This means you save money and reduce your emissions.

Review the following practical tips to help improve energy use on your farm.

Understand your energy use

Energy meters can help you find out:

  • when and where you are using the most energy
  • how much energy each appliance is using.

Get an energy assessment

Hire an auditor to perform an energy assessment or audit of your current energy use. When choosing an auditor, ask them about their experience in agriculture. You'll want them to provide advice specific to farm systems, like:

  • irrigation
  • variable speed drives
  • refrigeration.

Important

Before hiring an auditor, check they audit to the national standard (AS/NZS 3598.2:2014).

Review your energy bills

Make sure you're getting the best deal.

  • Learn how to interpret your energy bills, usage and costs. How you are charged can vary by:
    • electricity suppliers
    • your type of meter
    • the size of your business (determined by network demand (kVA) and consumption (kWh).
  • Check your tariff and off-peak rates:
    • If possible, shift some of your energy use to off-peak times to save on lower rates.

Search for a better deal

Compare your energy bills to other offers available in your area.

Visit the Victorian Energy Compare website to get started.

Compare your energy bill

Get the most from your equipment and machinery

  • Create a regular maintenance schedule for existing equipment, machinery and vehicles. This helps to ensure optimal fuel and energy use.
  • Check that any modifications to equipment are not affecting their efficiency.
  • Choose energy efficient options when:
    • making changes to farm management
    • investing in new equipment or machinery.
  • Develop a long-term plan to replace inefficient equipment over time.

Use less fuel and electricity

  • Avoid unnecessary fuel and electricity use by choosing energy-efficient engines.
  • Choose the right equipment or machinery for the task. Consider:
    • fuel type
    • consumption
    • conditions
    • tyre size
    • drive functionality (2, 4 or all-wheel needs)
    • training staff to use vehicles efficiently.
  • Minimise tractor passes.
    For example, changing from conventional tillage to minimum tillage can create fuel savings of up to 10%.
  • Consider opportunities for precision agriculture.
    For example, technology that optimise use and application of inputs. This results in reducing inputs and energy consumption.
  • Invest in technology to support the control and monitoring of energy use, such as:
    • automation equipment and machinery
    • robotics
    • control systems
    • autonomous vehicles.

Improve energy use in buildings, heating and cool rooms

  • Insulate buildings, storage areas, cool rooms, and heating and cooling pipes.
  • Paint roofs and walls in light colours that reflect heat.
  • Choose energy-efficient cool rooms and fridges.
  • Cool meat quickly, and pre-cool fruit and vegetables. This helps save energy across the cold chain and protects product quality and food safety.
  • Use heat recovery systems, heat pumps, or heat exchangers to reuse heat and cut energy use.
  • Heat homes with efficient split systems and pair them with solar power to lower winter heating costs.
  • Install energy-efficient lights and sensors and turn lights off when you do not need them.

Generate, store and use renewable energy

  • Choose the energy source that costs less and meets your needs. Use renewables instead of fossil fuels where you can.
  • Use farm waste to make heat or electricity if it works for your farm.
  • Turn wood chips, straw or effluent into useful energy for heating, hot water or power.
  • Install renewable energy systems if they suit your farm, such as:
    • solar panels
    • batteries
    • wind power
    • ground-source heat pumps.
  • Add energy storage such as batteries, thermal storage or fuel cells if it helps you use more of your own power.
  • Check for grants and rebates that can lower the cost of upgrades.
  • Look at programs such as Victorian Energy Upgrades and the Small-scale Renewable Energy Scheme.

Optimise energy used for irrigation

  • Match pump and motor size to the job. Use three-phase motors or variable speed drives where they improve efficiency.
  • Schedule irrigation from soil moisture readings, use solar power for electric pumps where it makes sense, and avoid peak tariff times if you can.
  • Test pumps to check how well they run and install an hour meter to help you track use and plan upgrades.
  • Tune pump performance to cut diesel use and improve water flow.
  • Use in-field sensors, soil moisture probes and flow meters to match water use to crop needs and soil capacity.
Page last updated: 18 May 2026