Study Reveals States Lagging Behind in Renewable Energy for Manufacturers

Kentucky, Louisiana and Tennessee have limited to no access to commercial wind energy generation - with just 1% of what's needed to power a factory each month. North Dakota is leading the charge with 1,650 MWh of renewable energy generated, per month from solar and wind, per business - more than enough to power two factories per month.

April 18, 2024 - To mark Earth Day on 22 April, a new study has shown how manufacturers face limited access to renewable energy access, due to huge state disparities in wind and solar power.

The study, conducted by manufacturing software provider, ECI Software Solutions, comes as the U.S. has ambitious plans to stop using fossil fuels for energy by 2025.

ECI Software Solutions looked at the Bureau of Labor Statistics to discover the number of manufacturing businesses in each state, before comparing this with monthly wind energy generation and monthly net generation solar energy, in MWh, for each state. From this, it found the highest estimated amount of renewable energy (wind and solar) generated, per business, by MWh.

The average factory uses 9,000 MWh of energy per year, which works out to 750 MWh per month - three times the average US residential consumption. And yet, in 30 states, there's less than 100 MWh generated per month, per business.

States with the biggest deficit of clean energy for manufacturers in the U.S

Of all states, Alabama has some of the lowest rates of both wind or solar energy generation, despite being in the top ten states for industrial sector energy consumption.

Kentucky followed behind - with 6,600 manufacturing businesses, but just 2.6 MWh of renewable energy, per business likely to be generated per month. Tennessee and Louisiana were on their heels at 7.5 MWh and 8.4 MWh per month - just 1% of what's needed to power a factory, signifying that lack of renewable energy could be the Achilles heel to achieving clean energy goals.

States with the highest amount of renewable energy for manufacturers

North Dakota came in first position as the state where manufacturing businesses are likely to generate the highest amount of renewable energy per month - at 1,650 MWh of renewable energy per business.

Wyoming ranks second with 1,459 MWh of renewable energy per business, just shy of double the required amount to power up a factory, followed by Iowa at 1,005 MWh.

Manufacturing hub, Texas, leads in wind-powered electricity generation, but with over 19,000 businesses to accommodate, manufacturers in the Lone Star State could only just be generating enough power through wind and solar at 561.5 MWh.

Although there are other sources of renewable energy, such as hydropower, or biomass, wind power is currently the largest producer of renewable electricity in the U.S. - but not all states can access it.

Matt Heerey, Manufacturing Division President at ECI Software Solutions, said:

"As we approach Earth Day, our research indicates a state-by-state imbalance in renewable energy, where a lack of access can hinder sustainability efforts driven through renewable sources. For example, factories in Alabama are likely to have a state-level renewable energy struggle, which could set them back in production, and ultimately be more costly down the line.

"The availability of clean energy can play a role in determining where manufacturers choose to locate their factories in the future, favoring states that have a large volume of wind turbines. It's important to evaluate all options that can ensure production processes are as efficient as possible to help avoid waste and reduce high energy consumption. Digitizing operations and using ERP software can provide visibility into areas that could be made more efficient and therefore less wasteful."

Readers can see the full research with all state rankings here: https://www.ecisolutions.com/blog/manufacturing/us-manufacturers-missing-out-on-wind-and-solar-energy/.

Methodology

ECI Software Solutions used data from the Bureau of Labor Statistics to understand the number of business establishments, by state, in the manufacturing industry.

It then took data from ChooseEnergy on wind energy generation, by state, in thousand megawatt-hours), from November 2023, and data from the U.S. Energy Information Administration, to understand the net solar generation for all states, by month, in thousand megawatt-hours, to understand the average amount of renewable energy generated, per manufacturing business.

*According to the U.S. Energy Information Administration, Alabama's solar generation is not able to be logged due to a large relative standard error, and does note that its total solar commercial power generation is small.

Data correct as of March 2024.

About ECI

ECI Software Solutions provides cloud-based business software for running small and mid-sized businesses end to end. Built by experts in manufacturing, residential construction, field service, building supply, office technology, and wholesale/retail distribution industries, ECI's industry-specific software connects businesses and customers, improving visibility, operational efficiency, and profitability. With ECI, businesses seamlessly integrate sales and marketing, business intelligence, CRM, data and analytics, ecommerce, mobile apps, and payment processing. With more than 30 years of industry leadership, ECI is trusted by 24,000 customers in more than 80 countries globally. Headquartered in Westlake, Texas, it has offices in the U.S., Canada, Mexico, the United Kingdom, the Netherlands, and Australia. For more information, visit www.ECIsolutions.com.

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