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Energy efficiency in manufacturing is a key driver of economic growth and sustainability in Australia 

As industries face increasing pressure to reduce carbon emissions and lower operational costs, energy-efficient technologies and processes are becoming more crucial than ever.  

With global shifts toward cleaner energy sources, Australia’s manufacturing sector is transforming to balance productivity with environmental responsibility.   

This article explores the key trends, technologies, and policy developments that will define the future of energy efficiency in manufacturing for Australia. 

The Australian government has set ambitious net-zero emission targets, pushing industries to adopt innovative solutions to improve energy efficiency 

Advances in automation, artificial intelligence (AI), and smart manufacturing optimise energy use, while integrating renewable energy sources like solar and wind reduces reliance on fossil fuels.  

Additionally, businesses focus on sustainable practices such as circular economy models, energy-efficient machinery, and waste heat recovery to cut energy consumption.   

What is Energy Efficiency?

Australia’s energy industry has a significant impact on the climate. That’s why energy efficiency—using less energy to get the same results—is essential for reducing greenhouse gas emissions.  

While making things more energy-efficient can cost money initially, it usually saves money for homes and businesses. This makes it an excellent solution for both the economy and the environment.  

Energy efficiency can be applied everywhere, from houses and factories to transportation and offices. Energy efficiency plays a crucial role in reaching net-zero emissions.   

Why is Energy Efficiency Important?

Using energy more efficiently helps lower emissions from manufacturing, heating and cooling buildings, and running vehicles. While people can take steps to reduce energy use at home, large-scale change needs government policies.  

For example, Germany has set a goal to cut its energy use by 50% by 2050 while keeping its strong manufacturing industry. Australia still has a lot of room for improvement. In a recent global ranking, it placed 18th out of the 25 biggest economies.  

Future of Energy Efficiency in Manufacturing for Australia

Manufacturers are now embracing innovative solutions to optimise energy use, reduce waste, and minimise environmental impact while maintaining productivity and competitiveness.  

Below are the key trends that will shape the future of energy efficiency in Australian manufacturing.    

energy efficiency

1. Digitalization and Smart Manufacturing

Technology is playing a crucial role in transforming energy management in manufacturing. Digital tools, automation, and artificial intelligence (AI) enable monitoring and optimising energy usage in real time.   

Internet of Things (IoT) & AI: Smart sensors and AI-driven systems are being integrated into factories to monitor energy consumption and automatically adjust operations for maximum efficiency.  

Machine learning (ML) algorithms analyse large amounts of data to detect patterns, predict energy demand, and recommend improvements in energy use. These technologies help manufacturers minimise waste and ensure that energy is used only when and where it is needed.   

Automation & Robotics: The use of energy-efficient robotic systems is increasing across the manufacturing sector.  

These robots improve precision in production processes, reduce material waste, and lower energy consumption. Automated systems also allow for continuous operations with minimal downtime, further enhancing efficiency.   

Digital Twins: A breakthrough in smart manufacturing is the use of “digital twins”—virtual models of physical manufacturing systems.  

These digital replicas help businesses simulate and test energy usage in different scenarios before making changes in the real world.  

By identifying inefficiencies and predicting maintenance needs, digital twins ensure that manufacturing processes remain as energy-efficient as possible.   

2. Renewable Energy Integration

With an abundance of sunlight and wind, manufacturers are increasingly investing in on-site renewable energy generation to reduce costs and lower their carbon footprint.   

Solar & Wind Power: Many manufacturing companies are installing solar panels and wind turbines to generate their own electricity.  

This reduces dependence on the traditional power grid and reduces electricity expenses. Some businesses even sell excess energy back to the grid, creating an additional revenue stream.   

Battery Storage: Advanced battery storage solutions are becoming essential since solar and wind energy production is intermittent.  

Energy storage systems allow manufacturers to store excess energy during peak production times and use it when needed, ensuring a steady and reliable power supply.   

Microgrids: A growing trend in manufacturing is the use of microgrids—localised energy grids that can operate independently or in coordination with the main power grid.  

Microgrids provide stability, improve energy reliability, and allow manufacturers to optimise their energy consumption based on real-time supply and demand conditions. 

3. Energy-Efficient Equipment & Processes

Manufacturers are making significant investments in energy-efficient equipment and production methods to lower energy consumption and reduce waste.   

High-Efficiency Motors & Pumps: One of the simplest yet most effective ways to improve energy efficiency is by using high-performance motors and pumps that require less power. These upgraded machines reduce energy waste while maintaining the same level of output.   

Heat Recovery Systems: Many manufacturing processes generate excess heat, which is often wasted. Heat recovery systems capture and repurpose this heat to power other parts of the production process, reducing the need for additional energy sources.  

This is particularly useful in food processing, metal production, and chemical manufacturing industries.   

Advanced Materials: Using lightweight and sustainable materials in manufacturing is gaining popularity.  

These materials require less energy to produce and transport, making them an environmentally friendly choice. Companies are also exploring innovative materials that improve energy efficiency in production, such as insulating materials that reduce heat loss.  

4. Circular Economy & Sustainable Manufacturing 

Sustainability is becoming a central focus in manufacturing, with companies adopting circular economy principles to reduce waste and improve resource efficiency.   

Recycling & Waste Reduction: Manufacturers are implementing systems to recycle materials and reduce waste in production. Companies can significantly lower their energy consumption by reusing raw materials and minimising energy-intensive manufacturing processes.   

Eco-Friendly Supply Chains: Businesses are reassessing their supply chains to ensure that they source materials from sustainable and energy-efficient suppliers. Transportation and logistics are also being optimised to reduce fuel consumption and emissions.   

5. Hydrogen & Alternative Fuels

As Australia explores alternatives to fossil fuels, hydrogen and biofuels are emerging as promising solutions for energy-intensive industries.   

Green Hydrogen: Hydrogen produced using renewable energy sources (green hydrogen) is expected to play a significant role in steel production and chemical manufacturing industries. It provides a clean energy alternative that can help significantly reduce emissions.   

Biofuels & E-Fuels: Cleaner fuel options, such as biofuels and synthetic e-fuels, are being adopted to replace traditional fossil fuels in manufacturing processes.  

These fuels can be used in existing machinery with minimal modifications, making them an attractive option for industries looking to lower their carbon footprint.   

The future of energy efficiency in Australian manufacturing is being shaped by cutting-edge technology, renewable energy adoption, and government initiatives.   

Energy Usage in the Australian Manufacturing Sector

Businesses in Australia, both big and small, depend on electricity and gas. Managing energy properly is crucial because it affects both costs and the environment.   

For small businesses, choosing the right energy plan can help save money. This means comparing different energy providers to find the best deal. Manufacturing companies can negotiate better rates with their current provider or switch to one offering lower prices.   

However, saving energy is not just about picking a good plan—it’s also about using energy more efficiently.   

While large industries may have detailed strategies, smaller businesses can take simple steps to reduce energy waste. The Australian Government’s Energy Advisory Service offers free guidance to help businesses use energy more effectively.   

Knowing when and where it is used is key to managing energy. Businesses should check their energy bills, find areas where energy use is high, and look for ways to save, such as upgrading equipment or making minor changes to daily operations.   

By using energy wisely, businesses can lower costs and reduce their environmental impact. Understanding how energy is used is essential for saving money and protecting the planet.  

Energy Challenges in Factories and Industrial Plants

Factories and industrial plants face many energy-related problems that can increase costs and reduce efficiency. Managing energy use properly is essential to keeping expenses low and ensuring smooth operations.   

One of the biggest challenges is the lack of proper energy monitoring systems. Many factories do not track how much energy they use daily or identify areas where energy is wasted.  

Without this information, it becomes difficult for plant managers to find ways to save energy and lower costs.   

A major issue is the absence of real-time energy tracking. Without monitoring systems, managers have no clear data on how much electricity different machines and systems consume. This makes it hard to pinpoint issues and make necessary improvements.   

Older machines, such as outdated heat pumps and motors, use more energy than they should. These machines often run inefficiently, causing irregular energy use and increasing electricity bills.   

fossil fuels

Ageing equipment consumes extra energy and can cause sudden power surges. These energy spikes stress electrical systems, leading to equipment damage and higher maintenance costs.   

Another challenge is that electricity providers may charge extra fees when a factory’s energy use exceeds its maximum limit. This can significantly raise operating expenses.   

Lighting is another source of wasted energy in factories. Many facilities use more lights than necessary, either by over-brightening work areas or leaving lights on when they are not needed, such as during low-activity hours.   

If these energy inefficiencies are not addressed, factories may face higher electricity bills, equipment failures, and unnecessary maintenance costs. Upgrading technology and improving energy monitoring can help factories save money and run more efficiently. 

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ACORE Statement on Treasury’s Safe Harbor Guidance

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ACORE Statement on Treasury’s Safe Harbor Guidance

Statement from American Council on Renewable Energy (ACORE) President and CEO Ray Long on Treasury’s Safe Harbor Guidance:

“The American Council on Renewable Energy (ACORE) is deeply concerned that today’s Treasury guidance on the long-standing ‘beginning of construction’ safe harbor significantly undermines its proven effectiveness, is inconsistent with the law, and creates unnecessary uncertainty for renewable energy development in the United States.

“For over a decade, the safe harbor provisions have served as clear, accountable rules of the road – helping to reduce compliance burdens, foster private investment, and ensure taxpayer protections. These guardrails have been integral to delivering affordable, reliable American clean energy while maintaining transparency and adherence to the rule of law. This was recognized in the One Big Beautiful Act, which codified the safe harbor rules, now changed by this action. 

“We need to build more power generation now, and that includes renewable energy. The U.S. will need roughly 118 gigawatts (the equivalent of 12 New York Cities) of new power generation in the next four years to prevent price spikes and potential shortages. Only a limited set of technologies – solar, wind, batteries, and some natural gas – can be built at that scale in that timeframe.”

###

ABOUT ACORE

For over 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s leading voice on the issues most essential to clean energy expansion. ACORE unites finance, policy, and technology to accelerate the transition to a clean energy economy. For more information, please visit http://www.acore.org.

Media Contacts:
Stephanie Genco
Senior Vice President, Communications
American Council on Renewable Energy
genco@acore.org

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Should I Get a Solar Battery Storage System?

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Frequent power outages, unreliable grid connection, sky-high electricity bills, and to top it off, your solar panels are exporting excess energy back to the grid, for a very low feed-in-tariff. 

Do all these scenarios sound familiar? Your answer might be yes! 

These challenges have become increasingly common across Australia, encouraging more and more homeowners to consider solar battery storage systems. 

Why? Because they want to take control of their energy, store surplus solar power, and reduce reliance on the grid.  

But then again, people often get perplexed, and their biggest question remains: Should I get a Solar Battery Storage System in Australia? 

Well, the answer can be yes in many cases, such as a battery can offer energy independence, ensure better bill savings, and provide peace of mind during unexpected power outages, but it’s not a one-size-fits-all solution.  

There are circumstances where a battery may not be necessary or even cost-effective. 

In this guide, we’ll break down when it makes sense and all the pros and cons you need to know before making the investment.

Why You Need Battery Storage Now?

According to data, Australia has surpassed 3.9 million rooftop solar installations, generating more than 37 GW of PV capacity, which is about 20% of electricity in the National Electricity Market in 2024 and early 2025.  

Undoubtedly, the country’s strong renewable energy targets, sustainability goals, and the clean‑energy revolution have brought solar power affordability, but the next step in self‑reliance is battery storage. 

Data from The Guardian says that 1 in 5 new solar installs in 2025 now includes a home battery, versus 1 in 20 just a few years ago, representing a significant leap in adoption.  

Moreover, the recent launch of the Cheaper Home Batteries program has driven this uptake even further, with over 11,500 battery units installed in just the first three weeks from July 1, and around 1,000 installations per day. 

Overall, the Australian energy market is evolving rapidly. Average household battery size has climbed to about 17 kWh from 10–12 kWh previously.  

Hence, the experts are assuming that 10 GW of new battery capacity will be added over the next five years, competing with Australia’s current coal‑fired capacity.

What Am I Missing Out on Without Solar Batteries?

Honestly? You’re missing out on the best part of going solar. 

Renewable sources of energy like solar, hydro, and wind make us feel empowered. For example, solar batteries lower your electricity bills, minimize grid dependency, and also help to reduce your carbon footprint 

But here’s the catch! Without battery storage, you’re only halfway there! 

The true magic of solar power isn’t just in producing clean energy; it’s storing and using it efficiently.  

A solar battery lets you store excess energy and use it when the sun goes down or the grid goes out. It’s the key to real energy independence. Therefore, ultimately, getting a battery is what makes your solar system truly yours.

Why You Need Battery Storage Now

Here’s a list of what you’re missing out on without a solar battery: 

  1. Energy Independence 
  2. Batteries help you to stay powered even during blackouts or grid failures. With energy storage, you don’t have to think of fuel price volatility and supply-demand disruption in the  Australian energy market. 

  3. Maximized Savings  
  4. Adding a solar battery to your solar PV system allows you to use your own stored energy at night instead of repurchasing it at high rates. It also reduces grid pressure during peak hours, restoring grid stability. 

  5. Better Return on Investment ROI 
  6. Tired of Australian low feed-in-tariff rates 

    Make full use of your solar system by storing excess power at a low price rather than exporting it. Solar panel and battery systems can be a powerful duo for Australian households.  

  7. Lower Carbon Footprint 
  8. Despite the steady growth in solar, wind, and hydro, fossil fuels still dominate the grid. Fossil fuels supplied approximately 64% of Australia’s total electricity generation, while coal alone accounted for around 45%. 

    These stats highlight why solar battery storage is so valuable. By storing surplus solar energy, homeowners can reduce their reliance on a grid that still runs on coal and gas.  

  9. Peace of Mind 
  10. Enjoy 24/7 uninterrupted power, no matter what’s happening outside.  

    Besides powering urban homes and businesses, batteries also provide reliable power backup for off-grid living at night when your solar panel can’t produce, ensuring peace of mind. 

What Size Solar Battery Do I Need?

While choosing the battery size, it isn’t just about picking the biggest one you can afford; it’s about matching your household’s energy consumption pattern. There is no one-size battery that will make financial or functional sense for everyone. 

Nevertheless, if you have an average family of four with no exceptional power demands, you may get by with a 10kWh to 12kWh battery bank as a ready-to-roll backup system.  

Well, this is just an estimation, as we have no idea of your power needs, because selecting a battery is highly subjective to the household in question. 

With that being said, you can get a good idea of how much power you use on average by analyzing your electric bill copy. Also, keeping track of which appliances you use the most and which ones require the most power will help you.  

So, to figure out the ideal battery size for your home, you need to consider three most important things: 

  1. Your Daily Energy Usage

Check your electricity bill for your average daily consumption (in kWh). Most Australian homes use between 15 to 25 kWh per day. 

  1. Your Solar System Output

How much excess solar energy are you generating during the day? That’s the power you’ll store to use later rather than exporting. 

  1. Your Nighttime Power Usage

A battery is most useful at night or during grid outages. So, estimate how much power you typically use after sunset. However, by using a battery, you can also get the freedom of living off the grid. 

Sizing Up: The Ideal Home Battery for Aussies! 

  • For small households and light usage, a 5 kWh battery will be suitable. 
  • For average Australian households, adding a 10 kWh battery would be enough. 
  • Large homes and high-energy users will need a 13 to 15 kWh system. 
  • For full independence, off-grid living, or blackout protection, you may require a larger battery size of 20+ kWh. 

Want help calculating your exact needs? Just drop your daily usage and solar output, and we’ll do the math for you! Cyanergy is here to help!  

Sizing Up: The Ideal Home Battery for Aussies! 

  • For small households and light usage, a 5 kWh battery will be suitable. 
  • For average Australian households, adding a 10 kWh battery would be enough. 
  • Large homes and high-energy users will need a 13 to 15 kWh system. 
  • For full independence, off-grid living, or blackout protection, you may require a larger battery size of 20+ kWh. 

Want help calculating your exact needs? Just drop your daily usage and solar output, and we’ll do the math for you! Cyanergy is here to help! 

How Much Do Solar Batteries Cost?

How Much Do Solar Batteries Cost

Previously, you would have to pay between $3000 and $3600 for the battery alone, plus the cost of installation, for every kWh of solar battery storage.  

However, you can currently expect to pay between $1200 and $1400 for each kWh of solar battery storage. That is a price reduction of approximately 52%, and things will only get better from here. 

Does that imply solar batteries are cheap now? Not really, but the cost is well justified by the pros of having a battery storage system. 

Also, while paying for solar batteries, you have to consider many other factors like the type of battery, your solar panel system configurations and compatibility, brand, and installation partner.  

These will significantly influence the price range of battery storage. 

Is a Solar Battery Worth It | Pros and Cons at a Glance

It’s okay to feel a little overwhelmed while deciding to invest your hard-earned money in a battery.  

So, here we’ve listed the pros and cons of having a solar battery to help you in the decision-making process. 

Benefits of Solar Battery Storage 

  • Solar batteries help you become self-sustaining. 
  • You don’t have to care about power outages anymore 
  • In the event of any natural disaster, you will still have a power source 
  • Battery prices are dropping significantly as we speak 
  • During peak hours, grid electricity prices increase due to high demand; you can avoid paying a high price and use your battery. It’s essentially free energy, as solar generates energy from the sun. 
  • Reduced carbon footprint as the battery stores energy from a renewable source. 

Advantages of battery for the grid and national energy system: 

  • Batteries support Virtual Power Plants (VPPs). In 2025, consumers get financial bonuses (AUD 250‑400) for joining, plus grid benefits via distributed dispatchable power.  
  • Grid‑scale batteries like Victoria Big Battery or Hornsdale Power Reserve are increasing system resilience by storing large amounts of renewable energy and reducing blackout risk. 

Drawbacks of Solar Battery Storage 

  • One of the biggest barriers is that solar batteries have a high upfront cost, which makes installation harder for residents. 
  • Home batteries require physical space, proper ventilation, and can’t always be placed just anywhere, especially in smaller homes or apartments. 
  • Most batteries, like lithium-ion batteries, last 5 to 15 years, meaning they may need replacement during your solar system’s lifetime. 
  • While many systems are low-maintenance, some may require software updates, monitoring, or even professional servicing over time. 
  • Battery production involves mining and processing materials like lithium or lead, which raise environmental and ethical concerns.   

Should You Buy a Solar Battery?: Here’s the Final Call!

You should consider buying a solar battery if several key factors align with your situation.  

First, it’s a strong financial move if you live in a state where federal and state incentives can significantly reduce the upfront cost. This can make the investment far more affordable.  

A solar battery can be especially worthwhile if you value having backup power during outages, lowering your electricity bills, and gaining a measure of energy independence from the grid.  

Additionally, you should be comfortable with taking a few extra steps to get the most value out of your system, such as joining a virtual power plant (VPP), which allows your battery to participate in grid services in exchange for modest returns.  

Finally, it’s worth noting that rebates decline annually, and early adopters get the most value.  

Takeaway Thoughts

Installing a solar battery in Australia in mid‑2025 offers substantial financial, environmental, and energy‑security benefits, especially if you qualify for multiple subsidies and have good solar capacity.  

With rebates shrinking after 2025 and demand surging, early movers stand to benefit most. 

By helping balance the grid and reduce dependence on fossil fuels, home battery adoption contributes significantly to Australia’s national goals of 82% renewable energy by 2030 

It’s not just about savings; it’s about being part of a smarter, cleaner, more resilient electricity future for Australia. 

Looking for CEC-accredited local installers?  

Contact us today for any of your solar needs. We’d be happy to assist!  

Your Solution Is Just a Click Away

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Wine Grapes and Climate Change

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I just spoke with a guy in the wine industry, and I asked him how, if at all, climate change is affecting what we does.

From his perspective, it’s the horrific wildfires whose smoke imbues (or “taints”) the grapes with an unpleasant flavor that needs to be modified, normally by creative methods of blending.

Wine Grapes and Climate Change

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