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Why Is Industrial Energy Efficiency Important?

Alabama is home to more than 5,200 manufacturing, assembly, and processing establishments that employ more than 312,000 people and contribute more than $27 billion annually to Alabama’s economy. Many of the industries that make up this large part of the state’s economy are energy intensive, including pulp and paper, chemicals, and primary metals. The industrial sector alone accounts for 40 percent of total energy consumption in the state of Alabama, ranking the state eighth nationally in industrial energy consumption.

In manufacturing, energy costs can account for anywhere between 10-40% of total production costs. While Alabama industries enjoy relatively low energy costs, increasing industrial energy efficiency provides an opportunity to reduce waste, lower costs, and increase profitability for Alabama’s manufacturers, while increasing competitiveness and strengthening the manufacturing economy in the state.

Energy Financing Programs


AlabamaSAVES is an innovative financing program that provides innovative solutions for energy requirements throughout the state.

State Energy Program

Funding for the State Energy Program comes from a U.S. Department of Energy grant. It is managed by a unit in ADECA's Energy Division known as the "Energy Efficiency and Renewables" unit.