Rising Energy Costs: Why Solar is the Intelligent Choice for UK Businesses

Wholesale energy costs are rising again, with Ofgem confirming a rise in the domestic energy price cap in October.

While this cap doesn’t apply to businesses, it signals a trend: wholesale prices are creeping upwards again. For businesses that will mean higher bills and squeezed margins.

In this blog, we take a look at what that means for UK industries and why solar is the intelligent solution.

Who feels it most?

All businesses are exposed to higher energy costs, but those with the highest, most continuous energy demands are hit first and hardest. That includes:

• Manufacturing and heavy industry – Steel, glass, ceramics, paper, chemicals and cement, all reliant on huge amounts of heat and power.
  
  
• Food production and cold storage – Refrigeration and processing plants running 24/7.
  
  
• Warehousing and logistics – Sites with extensive lighting, refrigeration and automation systems.
  
  
• Hospitality and leisure – Hotels, pubs, restaurants, gyms and swimming pools with constant heating and lighting needs.
  
  
• Retail – Especially supermarkets and department stores with high heating, cooling and lighting requirements.

For these sectors, wholesale price spikes can quickly wipe out already tight margins, leaving them vulnerable to inflationary pressures and competitive disadvantage.

The reality for businesses

• Rising overheads – Energy-intensive industries face higher bills that directly eat into profit margins.
  
  
• Price pressures – More than 60% of UK businesses say they’ve already raised their prices because of higher energy costs. And with government support schemes for business withdrawn in 2024, companies are increasingly on their own.¹
  
  
• Competitive disadvantage – Those unable to absorb or offset higher costs may lose ground to rivals who’ve invested in energy efficiency and renewables.

Will prices keep rising?

Market forecasts suggest energy prices will stay elevated for the foreseeable future. In the short term, costs may creep up steadily, with sharper spikes possible in winter.

Over the next few years, wholesale prices will depend on how quickly the UK and Europe scale up renewables and reduce dependence on fossil fuels. But one thing is clear: volatility is here to stay and businesses need a strategy to deal with it.

Waiting for prices to fall isn’t a strategy, building resilience is.

Why solar makes sense

Solar power gives businesses control. Instead of being at the mercy of market fluctuations, you generate your own clean, low-cost electricity.

There are some serious advantages to be gained, including:

• Predictable costs – Once panels are installed, the electricity they generate is free, reducing exposure to volatile grid prices.
  
  
• Serious savings – Commercial rooftops can typically cut bills by around a third, making a real difference to the bottom line.
  
  
• Net zero progress  – Every kilowatt produced on site reduces reliance on fossil fuels and supports ESG goals.
  
  
• Even smarter with storage – Add a battery system to store excess solar for use later, cutting peak-time costs and boosting resilience.
  
  
• Added value – Solar makes your property more attractive to investors and tenants, while enhancing your reputation as a forward-thinking business.

Taking the first step

Getting started is simpler than you may think. Begin with an energy audit to understand your usage. Assess your roof space for suitability. Then work with an experienced installer to explore design and finance options, from outright purchase to Power Purchase Agreements (PPAs).

With expert support, installation is smooth, and once in place, solar needs minimal maintenance.

The intelligent choice

Rising wholesale energy costs are a reality that businesses can’t ignore. But they don’t have to be a burden. With solar, your business can cut bills, stabilise costs and reduce your reliance on fossil fuels - all while boosting your bottom line.

Solar isn’t just an energy solution, it’s an intelligent business decision. The sooner you act, the sooner you save.

Talk to us today!

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¹ Resolve Energy