Water heating typically consumes 15-25% of total energy used on a dairy farm. Various methods are used to heat water on dairy farms including stand-alone commercial storage water heaters, tankless systems, and indirect water heating systems that use boilers. Direct-fired, stand-alone water heating systems are the most common type found on dairy farms, where water is heated continuously with a heating element inside the storage tank and stored until use. Indirect-fired water heating systems work in conjunction with a boiler, where the water is heated and then sent to a storage tank.
Dairy farms require commercial water heaters because they typically heat water to 170-180°F, which is not possible with residential water heaters due to federal regulations. Common fuel types used to heat water on dairy farms include fuel oil, propane, natural gas, and electricity. The efficiency of water heaters is usually measured in terms of energy factor (EF), uniform energy factor (UEF), or thermal efficiency (TE), where a higher EF, UEF, and TE value indicates higher water heating efficiency. Installing a high-efficiency water heater can substantially reduce energy costs on a dairy farm, and additional water heating energy savings can be achieved by utilizing a compressor heat recovery system from chillers and other machinery.
When used, in what regions in the U.S. is the practice found:
Northwest, West, Upper Midwest, Southwest, Northeast, Southeast
FARM SIZE
When used, typically found on farms of the following sizes:
All Sizes
Practice Benefits
Increased profitability: The main benefit of installing a high efficiency water heater is a reduction in energy costs on the dairy farm. Having a properly functioning water heating system is also critical to avoid milk quality issues arising from inadequate sanitizing. If a dairy farm generates electricity on the farm using a renewable energy system, an electric hot water system can provide additional benefits by taking advantage of lower electricity costs versus grid-supplied electricity.
Implementation Insights
Site-specific or Farm-specific requirements
Operation size and configuration: The milk parlor configuration and existing hot water heating system may impact the type of water heating systems available to the dairy farm, and it is recommended to consult a hot water heater vendor experienced in dairy farm installations. Additionally, the water heating demands of the dairy farm (mainly determined by the dairy herd size and number of milking units) may restrict the available water heating systems to choose from.
Required Capital Expenditures (CapEx)
Hot water heating system purchase and installation: The primary capital cost involves purchasing the water heater itself (e.g., electric, gas, or heat pump) and covering the labor expenses for installation. The choice between electric and non-electric systems depends on factors such as the farm's energy priorities, the cost of available electricity (including demand charges), and other fuel options. While heat pump water heaters represent a high-efficiency option, they are currently less common on dairy farms due to limitations in achievable water temperature. However, as newer versions of this technology become available, they may present a viable future investment opportunity.
Compatibility with heat recovery systems: Integrating a compressor heat recovery system is an additional investment that can work alongside the water heater to further reduce energy consumption and heating costs.
Required Operational Expenditures (OpEx)
Maintenance: Ongoing maintenance costs for high-efficiency water heaters are generally low (excluding the fuel required to heat water). Annual maintenance requirements and costs vary by the type and model of water heater but typically include draining sediment from the tank at least once, inspecting and cleaning burners and heating element surfaces, and testing and replacing valves as needed.
Implementation Considerations
Heater selection: Hot water heaters must be correctly sized for the dairy farm’s water demands, which are usually around 4 gallons of water per milking unit per day. When selecting a water heater, it is recommended to select a model with the highest EF, UEF, or TE, depending on how the water heater efficiency is reported. High-efficiency water heaters typically have an EF or UEF rating of at least 0.82 for non-electric units and 0.91 for electric units, or 90% TE.
Heater installation: High-efficiency water heating systems are straightforward to install with the design and installation assistance of an experienced equipment vendor.
Financial Considerations and Revenue Streams
FEDERAL COST-SHARE AND CONSERVATION FUNDING
Funding is available for this practice through USDA's Natural Resources Conservation Service (NRCS) Environmental Quality Incentives Program (EQIP) On-Farm Energy Initiative.
Related EQIP Practice Standard: Energy Efficient Agricultural Operation (374).
Notes:
An Agricultural Energy Management Plan (AgEMP), or other qualifying energy audit, needs to be completed before applying for EQIP assistance.
Check with the local NRCS office on payment rates and practice requirements relevant to your location.
The USDA Rural Development Rural Energy for America Program (REAP) also offers competitive grants and loan guarantees for installing energy efficiency projects.
OTHER CONSERVATION FUNDING
Incentives and rebates for high-efficiency water heaters are sometimes available through the farm’s electric utility or gas utility company. Dairy farms that use propane or fuel oil to heat their water usually are not able to obtain energy utility-sponsored rebates.
Additional Resources
Environmental Impacts
REDUCES FARM GREENHOUSE GAS FOOTPRINT
Improving energy use efficiency reduces a farm's greenhouse gas (GHG) footprint. Since energy production typically involves processes that emit GHGs like carbon dioxide and methane, cutting energy use directly lowers the farm's GHG footprint.
Alignment with FARM Program
FARM Environmental Stewardship (ES) V2-V3 Alignment
FARM ES captures a farm's energy usage and calculates the associated GHG emissions based on regional energy production and transmission averages. Any practice that reduces farm energy consumption will directly lower the farm's GHG footprint. The reduction in GHG emissions is particularly pronounced in regions where a larger proportion of energy is derived from coal, natural gas, or other fossil fuel sources, as these energy types have higher carbon footprints compared to renewable energy sources.
Contents
We're always eager to update the website with the latest research, implementation insights, financial case studies, and emerging practices. Use the link above to share your insights.
We're always eager to update the website with the latest research, implementation insights, financial case studies, and emerging practices. Use the link above to share your insights.
Water heating typically consumes 15-25% of total energy used on a dairy farm. Various methods are used to heat water on dairy farms including stand-alone commercial storage water heaters, tankless systems, and indirect water heating systems that use boilers. Direct-fired, stand-alone water heating systems are the most common type found on dairy farms, where water is heated continuously with a heating element inside the storage tank and stored until use. Indirect-fired water heating systems work in conjunction with a boiler, where the water is heated and then sent to a storage tank.
Dairy farms require commercial water heaters because they typically heat water to 170-180°F, which is not possible with residential water heaters due to federal regulations. Common fuel types used to heat water on dairy farms include fuel oil, propane, natural gas, and electricity. The efficiency of water heaters is usually measured in terms of energy factor (EF), uniform energy factor (UEF), or thermal efficiency (TE), where a higher EF, UEF, and TE value indicates higher water heating efficiency. Installing a high-efficiency water heater can substantially reduce energy costs on a dairy farm, and additional water heating energy savings can be achieved by utilizing a compressor heat recovery system from chillers and other machinery.
Practices and technologies
High-Efficiency Water Heaters
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