Green manufacturing is of significant importance to meet the strategic goals of carbon peak and carbon neutral. Reducing energy consumption in manufacturing plays a critical role to achieve green objectives, particularly for production lines with energy-intensive setup processes. In this letter, a two-machine line model with setups is introduced. In addition to deriving analytical method to evaluate productivity and energy performance in such lines, an optimization model to minimize energy consumption and maximize production rate is introduced. Using this model, system properties and design policies to optimize line performance are presented. Such a model provides a building block for developing quantitative tools to analyze and optimize energy and productivity performance in manufacturing systems.