By: Adam
As of Mid 2025 there's no end in sight to rising energy prices - is investing in solar panels for your commercial premises the answer?
According to figures from the Office for National Statistics, since 2021 the cost of electricity for non-domestic user has increased by 75%* (as of Q4 2024). Even with some reduction in gas prices in the last two years the average price for industrial users is more than double what it was in 2021. The wholesale price of gas is almost always the main factor in establishing UK electricity prices. Out of 24 countries reporting to the International Energy Association, the UK reported the highest electricity prices for industrial users - 46% higher than the IEA median and 50% higher than France and Germany (2023). Even though average gas prices for UK industrial users were 7% lower than the IEA median, our reliance on gas-fired power stations (as opposed to coal and nuclear) amplifies any change in cost to a great extent.
The highest energy-intensive industries are identified as:
...it's important to identify these industries and understand the effect of high energy price - basically they are more at risk as their consumption of energy compared to gross value added is high. Output in all of the above industry-types has contracted significantly since 2021.
We wouldn't want to patronise business owners by talking about reducing energy waste, securing fixed-rate contracts, investing in energy-efficient equipment etc as many businesses we work with are already very aware of these strategies.
The UK government plans to reduce energy bills for some types of industrial firms by making them exempt from 'green levies' on electricity bills (maybe up to 15%), however this won't apply to many medium and small business and will only scrape the surface for major manufacturers.
We are on the cusp of a great opportunity in the UK - energy diversification, large-scale battery storage and less reliance on 'the grid'.
We speak from experience having installed thousand of solar panels for industry, warehousing, manufacturing and agriculture, up and down the UK: As of mid-2025 we expect that our clients will save £30M on energy costs over the lifetime of their systems.
Don't just take our word for it - here are some recent projects...
Comar Engineering has taken a big step towards reducing their energy bills by installing a 73 kW Solar system on their roof!
Watch the video for the opinion of our client...
It is great to see a manufacturing company like Cannock Gates LTD switching to green energy to not only save huge amounts of money but also help to cut down their carbon footprint.
We estimate this solar panel installation will generate 23-25% of Ram Extrusion's electricity needs with a 4-year payback. For such a busy production environment that runs 24 hours a day this amounts to £1.2 million in savings over its lifetime.
Get in touch with our friendly and knowledgeable team...
0115 783 6409 | 07970 050 563 | 07841 022 860
*The Impact of higher energy costs on UK businesses: 2021 to 2024
