A system for energy recovery from a rod pump includes a reversible hydraulic pump; a variable speed reversible motor-generator connected to the reversible hydraulic pump; and a variable speed drive that operates the motor-generator to rotate the reversible hydraulic pump in a forward direction to pump hydraulic fluid to the rod pump during an upstroke, and to operate the motor-generator in a generator mode in which a weight of a rod string lowers a piston in the rod pump during a downstroke to pump hydraulic fluid to rotate the hydraulic pump in reverse such that the motor-generator generates electricity, and the variable speed drive modulates a speed of the motor-generator during the downstroke to modulate a speed of the reversible hydraulic pump to control a rate of flow of hydraulic fluid through the reversible hydraulic pump and thereby modulate a rate of downward motion of the rod string.