UK Manufacturers: Take Control of Your Energy Costs Today

UK manufacturers are facing an energy crisis that few are talking about and fewer still are doing anything to solve.

It's no secret that electricity costs in the UK are among the highest in Europe. But the reality for many manufacturing businesses is far more severe than the headline statistics suggest. A recent investigation revealed that energy-intensive firms in Britain are paying up to 40% more for electricity than their competitors in France and Germany.

That's not just a number on a bill. It's the difference between investing in growth and staying competitive or falling behind and shutting down. While policy discussions and long-term reforms slowly grind through the machinery of government, manufacturers are left footing the bill with no clear end in sight.

The System Is Broken and UK Industry Is Paying the Price

The harsh truth is that the current system is fundamentally broken, and UK industry bears the cost. The manufacturers we speak with daily aren't seeking handouts – they're asking for fairness.

UK industrial electricity prices rank among Europe's highest. Businesses here pay significantly more than their international peers, even though many are doing exactly what policymakers have requested: transitioning to electric-powered processes, decarbonizing operations, and supporting the energy transition.

Yet the rewards for this forward-thinking behaviour are punishing energy bills, confusing policy frameworks, and a grid system that seems designed to disadvantage significant power users at peak times. How is this sustainable?

The Times article highlights how this pricing disparity threatens to hollow out our industrial base. This isn't abstract economic theory – our team hears this frustration directly from clients. Many are family-run businesses or local employers who've invested decades into their operations. Now they're being told that to compete internationally, they must absorb UK-specific costs that other countries shield their industries from.

We're already witnessing investment decisions shift abroad. Inaction isn't just inconvenient anymore – it's dangerous.

Why UK Manufacturers Face Higher Costs

Part of the problem lies in how the UK's electricity system is structured. Unlike countries such as France, where industrial users benefit from regulated access to lower-cost electricity, the UK exposes businesses to volatile wholesale markets and full network charges. Add policy levies and standing charges, and manufacturers often pay more for the infrastructure delivering electricity than for the electricity itself.

The 2022 energy crisis made things worse. While households received support through the Energy Price Guarantee, businesses received less protection. Many became locked into long-term contracts at peak prices – impacts still felt today.

Progress exists, but it's slow. The government has introduced schemes like the Energy Intensive Industries compensation package, but eligibility remains narrow, processes are complex, and impact is modest at best. It's simply not enough.

Meanwhile, grid access delays and regulatory uncertainty slow the rollout of cheaper, greener electricity. Businesses want to invest in renewables but face bureaucratic barriers or excessive connection wait times.

Taking Control: The VEST Solution

Waiting for government intervention isn't a strategy – it's a gamble most manufacturers can't afford. The solution increasingly lies in taking matters into their own hands.

On-site solar power paired with battery storage offers a tangible, increasingly affordable way for manufacturers to control energy costs, reduce grid reliance, and build long-term resilience.

At VEST, we work with manufacturers across the UK using our proven six-step approach:

1. Slash Energy Bills

Installing rooftop solar enables businesses to generate electricity at known, predictable costs – often far below grid prices. Even without subsidies, solar can deliver 5-8p per kWh electricity over 20 years, compared to 20p+ from the grid.

2. Maximise Your Own Power Usage

Battery storage allows businesses to capture excess solar power during the day and use it during evening hours or peak pricing periods. This maximizes solar value while reducing expensive grid imports.

3. Hedge Against Market Volatility

With wholesale prices remaining unpredictable and geopolitical risks ever-present, on-site generation and storage protect against future price spikes. This gives CFOs and energy managers budget confidence they desperately need.

4. Generate New Revenue Streams

Batteries aren't just storage – they're flexibility assets. By participating in grid services like Frequency Response or Dynamic Containment, businesses earn revenue for helping balance the grid. This means batteries can pay for themselves faster than most expect.

5. Future-proof Against Policy Changes

As the UK moves toward a more dynamic, location-based energy system – think zonal pricing, time-of-use tariffs, carbon signals – having flexible on-site energy provides competitive advantage. Rather than being at the mercy of every regulatory shift, you're positioned to adapt and benefit.

6. Enhance ESG and Corporate Reputation

Customers and investors increasingly demand climate action. Solar and storage systems clearly signal your business takes sustainability seriously. They also help meet Scope 2 emissions goals and strengthen ESG disclosures.

The Technology Is Ready and So Are We

Historically, many manufacturers assumed solar and batteries were too expensive or complicated. That's no longer true. Capital costs have fallen dramatically, supply chains have matured, and financing options have expanded. With solutions like our GreenBattery program, you don't need upfront funding.

Most importantly, experienced partners like VEST Energy can guide you through the entire process – from initial design and procurement to ongoing optimization and revenue generation.

Government Still Has a Role But Don't Wait

The government still needs to deliver fairer pricing structures, faster grid connections, and more supportive industrial policy. But right now, UK manufacturers simply don't have time to wait for these changes.

The good news? Action is possible today. Through a simple conversation, your site could have solar and storage installed by year-end, immediately lowering costs, reducing risk, and future-proofing operations.

Why wouldn't you take that step?

Ready to Take Control of Your Energy Costs?

If you're a manufacturer facing rising energy costs or a sustainability leader seeking real-world impact, we want to talk.

Contact us today to discover how we can help your business take back control of its energy future.