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How to Reduce Energy Costs Using IIoT

by:Sakshi January 8, 2026 0 Comments

Energy costs are rising across industries, and for manufacturing plants, this increase directly impacts profitability. In many factories, energy is consumed continuously, but very little attention is given to how and where it is used. Machines keep running even when production is stopped, utilities operate inefficiently, and peak demand penalties silently increase electricity bills. The real problem is not high energy usage—it is the lack of visibility.

This is where IIoT becomes a powerful tool. With the right IIoT approach, manufacturers can convert energy data into clear actions and long-term savings.

Reduce energy costs using IIoT

Why Energy Costs Remain High in Most Plants

Most manufacturing plants rely on monthly electricity bills or basic meter readings. This makes it difficult to understand which machines consume excessive power, which shifts are inefficient, or where energy is wasted during non-production hours. Without real-time insights, decisions are always reactive.

To reduce energy costs, manufacturers need continuous monitoring, accurate data, and structured improvement—and this is exactly where IIoT helps.

How IIoT Helps Reduce Energy Costs

IIoT connects machines, energy meters, and utilities to a centralized system that captures data automatically. This data creates transparency across the shop floor and supports informed decision-making.

1. Real-Time Energy Monitoring at Machine Level

IIoT enables manufacturers to track energy consumption at the machine, line, and plant levels. Instead of guessing, teams can clearly see which equipment is consuming more power and during which time periods.

This helps identify:
  • Machines running idle
  • High energy usage during non-productive shifts
  • Sudden energy spikes indicate faults

Accurate data capture starts with Industrial Hardware Sales & Installation.

2. Detecting Hidden Energy Waste

Energy losses often come from unnoticed issues like inefficient motors, air leaks, or outdated equipment settings. IIoT systems highlight these inefficiencies through data trends and alerts, allowing teams to take corrective action early.

Analyse long-term energy patterns using OT Software Implementation & Data Historian.

3. Managing Peak Load and Demand Charges

Peak demand charges significantly increase energy bills. IIoT helps monitor live electrical load and provides alerts before limits are crossed. This allows plants to reschedule operations or balance loads more effectively.

Optimize utilities and load management with Turnkey Automation & IIoT Solutions.

4. Linking Energy Usage with Production Output

Energy data becomes far more valuable when it is linked with production data. IIoT enables manufacturers to measure energy per unit produced, helping identify inefficient processes and improve overall energy performance.

How Devanta Tech Delivers IIoT-Based Energy Cost Reduction

Devanta Tech does not offer just software or dashboards—we deliver end-to-end energy optimization solutions tailored to real shop floor conditions.

Our service approach includes:

Assessment & Planning
We begin by understanding your current energy consumption, production process, and loss areas. Based on this, we define clear monitoring objectives.

Hardware & Connectivity Setup
We deploy reliable industrial hardware to capture machine-level and utility-level energy data accurately.

System Integration & Data Structuring
Energy data is integrated with production systems using IIoT platforms and historians, ensuring clean, meaningful data.

Dashboards, Alerts & Insights
We configure dashboards that show real-time energy usage, peak demand, and inefficiencies—making data easy to understand for operators and managers.

Continuous Improvement & Training
Devanta Tech supports teams with engineering guidance and training to ensure energy optimization becomes a regular practice, not a one-time activity.

Strengthen implementation and adoption through Engineering, Consulting & Training.

Devanta Tech works with manufacturers across Automotive & Auto Components, Packaging Industry, Electrical & Electronics, Machinery Manufacturing, and Process & Chemicals, helping them achieve sustainable energy savings using IIoT.

Frequently asked questions (FAQs)

1. Can IIoT reduce energy costs without changing existing machines?
Yes. Most savings come from better monitoring, control, and operational discipline.

2. How long does it take to see energy cost improvements?
Many plants identify energy-saving opportunities within a few weeks of implementation.

3. Is IIoT energy monitoring suitable for mid-sized plants?
Absolutely. Devanta Tech designs scalable solutions based on plant size and budget.

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