The U.S. has a hidden reservoir of grid capacity in its 50 million electric motors, which power fans, pumps, and compressors in factories and buildings. These motors draw roughly a third of the nation's electricity, and because they typically run at full speed regardless of demand, they waste a significant share of that power.
Variable frequency drives (VFDs) can adjust motor speed to match real-time need, cutting energy use by an estimated 40 to 60 percent. Yet adoption remains low: a 2021 Lawrence Berkeley National Laboratory report found only 16 percent of industrial motor systems and 4 percent of commercial-sector motors use VFDs. Historically, the technology was expensive and complex to install, but recent advances in sensors, machine learning, and power semiconductors have made modern drives cheaper and easier to deploy.
Energy experts and manufacturers are urging federal agencies, utilities, and large tech companies to expand VFD use through financial incentives and efficiency standards. They argue that freeing up motor energy would help accommodate growing demand from data centers and electric vehicles, and lower costs for factories electrifying their heating systems. A pilot program by the National Electrical Manufacturers Association aims to gather real-world data to justify utility rebates, and proponents hope the results will inform future Department of Energy efficiency measures.