As of March 2025, energy prices in the UK remain much higher than pre-energy crisis levels. This sustained increase continues to impact both households and businesses across the country.
Ofgem, the UK's energy regulator, has announced a 6.4% rise in the energy price cap, effective from April 1, 2025. This will see the cap increase from £1,738 to £1,849 per year for a typical household using both gas and electricity. Whilst this doesn’t directly affect businesses, it does mean companies can also expect to see a rise in their energy bills.
The energy price cap is directly related to wholesale energy prices. Unlike domestic consumers, businesses in the UK are not protected by an energy price cap. This means they are more directly exposed to fluctuations in wholesale energy prices, making them vulnerable to cost increases.
Reducing costs with renewable energy
While energy price hikes are difficult for businesses to navigate, there is one way that companies can bring down their energy costs in the long run. Onsite renewable energy technology can be one of the best investments for companies to reduce energy costs.
Solar
By installing solar panels, businesses can generate their own electricity, reducing their reliance on the grid and lowering monthly utility bills.
Over time, these savings can bring down a company’s annual electricity bills by up to 50% and potentially even more with battery storage.
Additionally, there are schemes in the UK that offer tax incentives, rebates, and grants for solar adoption, further reducing the upfront costs. Solar panels also have low maintenance costs and long lifespans, making them a reliable investment.
Find out more about solar panels for businesses.
PPA (Free solar)
Onsite Solar Power Purchase Agreements (PPAs) or free solar help companies reduce energy costs by allowing them to access solar power without the high upfront capital investment of installing a solar system.
Under a Power Purchase Agreement (PPA) contract, a third-party developer owns, operates, and maintains the solar panels installed on the company’s property, while the company agrees to purchase the electricity generated at a set rate.
This rate is often lower than traditional utility prices, providing immediate savings and protection against future energy price fluctuations. Additionally, since solar power reduces reliance on grid electricity, companies can lower demand charges and benefit from incentives or tax credits associated with renewable energy.
By locking in predictable, lower-cost energy, businesses can improve financial planning and achieve long-term cost stability, without the upfront cost of solar panels.
Find out more about Solar PPA contracts for businesses.
Voltage Optimisation
Voltage optimisation contracts help companies reduce energy costs by ensuring that electrical equipment operates at its optimal voltage level, minimising unnecessary energy consumption.
This involves the installation and maintenance of voltage optimisation systems, which regulates and stabilises the voltage supplied to a facility.
By reducing excessive voltage, businesses can decrease energy waste, lower electricity bills by up to 19%, and extend the lifespan of electrical appliances.
Additionally, voltage optimisation can improve power quality, reduce carbon emissions, and enhance overall energy efficiency. As a result, companies benefit from both financial savings and a more sustainable energy strategy.
Find out more about voltage optimisation for companies today.
If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.
