Maximizing efficiency and savings in irrigation: How energy management benefits farmers

Water and energy are two of the most critical resources in modern agriculture, and efficient management of both can mean the difference between a profitable season and one plagued by high operational costs. Farmers who prioritize energy-efficient irrigation systems can see significant savings, better water conservation and even potential incentives to help offset upgrade costs.

As the agricultural industry continues to adopt sustainable and cost-effective practices, Idaho Power is supporting farmers through enhanced incentive programs and additional demand response options. Whether you're repairing worn-out sprinkler parts, upgrading to more efficient equipment, or looking for ways to lower your bill, understanding these programs and opportunities can help you make informed decisions for your operation.

The importance of energy efficiency in irrigation systems

For many farmers, irrigation is one of the most energy-intensive aspects of their operation. Worn-out nozzles, leaking gaskets, inefficient pumps and outdated control systems can contribute to wasted electricity and water, driving up costs and reducing overall efficiency.

"When irrigation equipment isn’t functioning properly, farmers are often using more energy and water than necessary," says Nathan Black, Idaho Power's agricultural engineer. "Even minor repairs or upgrades can lead to noticeable cost savings over time, and incentives can help with the upfront costs."

Repairing and upgrading irrigation equipment is one of the simplest ways to cut down on unnecessary expenses and improve water distribution. While replacing leaky fittings or upgrading sprinkler heads can translate to meaningful savings, more extensive upgrades, like variable-frequency drives (VFDs) for pumps, can further optimize energy use by adjusting pump speed to match water needs and reducing strain on equipment from too much water pressure during those times when the system is not operating at capacity.

To help farmers make these energy-efficient improvements, Idaho Power increased its Irrigation Efficiency Rewards program incentives in January. These enhanced incentives provide customers with financial support for both small repairs and larger system upgrades, making it more affordable to invest in energy efficiency.

• Menu incentive program: This option allows farmers to receive rebates on specific irrigation parts, such as nozzles, gaskets and regulators. Simply purchase the eligible replacement parts and submit a paid invoice with an application.
• Custom incentive program: This option provides reimbursements based on the estimated annual reduction in energy use. Whether for an existing system upgrade or a new high-efficiency installation, the custom incentive rewards farmers who take steps to reduce their overall energy consumption. In 2025, the incentive rates increased by 5 cents per kilowatt-hour (kWh) and $90 per kilowatt (kW).

"We know the price of parts has gone up over the years," Black explains. "That’s why we are excited to be able to increase the incentive amounts, which makes these efficiency improvements more affordable and keep up with the cost of doing business."

A free and easy way to get started making efficiency improvements is through a wire-to-water efficiency test, which measures how efficiently a pump system converts electrical energy into the actual work of pumping water. An Idaho Power agricultural representative (ag rep) can perform these tests for free for Idaho Power customers and provide a general overview of how well the pump system is performing. The key is to assess irrigation systems regularly and identify areas where efficiency improvements can be made.

Understanding demand response and load control for wise energy use

While energy efficiency is critical, another factor in managing electricity costs is understanding demand response and load control. During times of high energy use across the power grid – typically in the heat of summer – utilities may utilize demand response programs to maintain reliability and minimize or delay the need for new power generation resources.

Idaho Power’s Irrigation Peak Rewards program is one such program that offers farmers financial incentives for allowing pumps to be shut off during peak times. This benefits both farmers and the overall electrical grid by lowering or shifting the peak demand and keeping costs low for everyone.

How irrigation peak rewards works

Farmers enrolled in Irrigation Peak Rewards can choose between two options: allowing Idaho Power to install and operate a load control device that automatically shuts off irrigation pumps during peak demand times or opting for manual shutoff, where they choose which pumps to turn off during a load control event.

The program runs from June 15 to Sept. 15, with a minimum of three events per season.

An early interruption option has been introduced this year, limiting the event window from 3 to 9 p.m. This new option may align better with irrigators’ schedules.

Another 2025 update ensures the variable incentive will be paid after the third event rather than the fourth, allowing participants to earn the additional variable incentive after fewer events.

"We value our customers’ input, and we’ve adjusted the Irrigation Peak Rewards program in 2025 based on their feedback," Black says. "The new early interruption option and adjusted variable incentive structure were designed to encourage more participation."

Making the most of energy efficiency and demand response programs

The combination of irrigation efficiency upgrades and demand response participation gives farmers a powerful tool set to manage both energy consumption and costs. Investing in high-efficiency equipment can lead to immediate and long-term savings with an incentive to help offset the initial cost, while demand response programs offer immediate financial incentives and help balance energy use during peak times.

For those considering irrigation improvements, now is the perfect time to take action. With increased incentives for energy-efficient upgrades and more options to participate in the Irrigation Peak Rewards program in 2025, Idaho Power is making it easier than ever for farmers to maximize efficiency and reduce expenses.

To learn more about how these programs can benefit your operation, visit online or speak with your local Idaho Power ag rep.