Manufacturing Energy 2026: The Ultimate Guide to Reducing Gas & Electricity Costs Quick answer
Reducing gas and electricity costs in the manufacturing sector has never been more crucial. With volatile energy prices and pressure to meet Net Zero goals, UK manufacturers must adopt effective energy management strategies. From energy audits and smart technology to renewable energy solutions, this guide explores how to reduce costs, improve efficiency, and future-proof your business.
If you would like to read more information or learn more about the pricing of business energy, you can do so here .
Contents
Manufacturing Gas and Electricity
Manufacturing Gas and Electricity Providers
How to Choose the Right Supplier For Manufacturing Gas and Electricity
Energy Efficiency Measures For the Manufacturing Industry
How do we work?
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Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: March 2026
Key Takeaways
Energy Efficiency Savings: Manufacturers can save 5-8% on energy costs by upgrading machinery, improving insulation, and implementing energy-saving technologies like smart meters and LED lighting.
Energy Price Volatility: Fixed-rate plans help mitigate energy price fluctuations and provide cost stability, crucial for energy-intensive businesses.
Renewable Energy Solutions: Solar PV, wind turbines, and battery storage offer long-term savings and reduce dependency on the grid.
Government Support: Financial schemes like Salix Finance and the Energy Savings Opportunity Scheme (ESOS) help offset the costs of energy-efficient upgrades.
Manufacturing Energy and Gas With rising wholesale energy costs and growing regulatory pressure, manufacturers must carefully manage their energy strategies, and according to a 2025 BEIS/ONS energy report, UK manufacturers account for around 17% of all industrial energy use!
While energy costs can be passed to consumers in competitive markets, most manufacturers absorb them so reducing profit margins or scaling back production, which is why improving efficiency is now critical.
A recent survey found only 15% of manufacturers believe the government’s Energy Savings Opportunity Scheme (ESOS) has significantly improved investment in energy-saving tech. However, adopting smart meters, LED lighting, better insulation, and updated HVAC systems can still lead to 5-8% savings with a payback of under two years.
Manufacturing Energy and Gas Providers
Provider Why we like them for manufacturing companies Pros Cons Reviews
E.ON
Large provider, business support options, energy efficiency services
Reliable service, wide range of tariffs, potential for tailored solutions
Higher prices, varying customer service
British Gas
Established brand, extensive network, energy management solutions
Strong brand recognition, reliable service, potential for business support
Higher prices, varying customer service
Shell Energy
Competitive pricing, smart technology, energy efficiency programs
Competitive prices, innovative solutions, potential for business support
Newer provider, limited availability
ENGIE
Specialised energy solutions for businesses, energy efficiency expertise, strong focus on sustainability
Tailored solutions, energy management expertise, strong sustainability credentials
Potentially higher costs, complex offerings
Centrica
Energy management services, energy efficiency solutions, tailored support for businesses
Comprehensive range of services, in-depth industry knowledge
Potentially higher costs, complex offerings
How to Choose the Right Supplier For Manufacturing Gas and Electricity Here’s what to look for:
✅ Fixed-rate plans to protect your business from energy market volatility.Industry-specific plans -Look for tariffs that reflect manufacturing patterns and energy demand.Dedicated account management – this is especially useful for multi-site or high-consumption businesses.Smart metering and real-time monitoring which helps track peak loads and reduce waste.
📊 Understanding your peak energy times can help shift operations to cheaper hours, negotiate lower standing charges, or even access time-of-use tariffs.
Energy Efficiency Measures For the Manufacturing Industry 📌 Upgrade your old equipment
Choose high-efficiency machinery with low standby power.
Prioritise equipment with Energy Star or ISO 50001 standards.
📌 Maintain your current systems
Regular servicing of motors, HVAC systems, and compressors can save up to 15% in wasted energy.
📌 Improve your insulation
Insulating pipes, ductwork, roofs, and walls can cut heating costs by up to 25%.
Don’t forget to check for air leaks around loading docks or warehouse doors.
📌 Smart thermostats & zoning
Helps control heating/cooling in large facilities.
Reduce unnecessary heating in storage areas or unused zones.
Renewable Energy Options 📍 On-site generation
Solar PV, wind turbines, and bioenergy systems are more affordable and efficient than ever. ROI is typically 5–8 years with government support.
📍 Green tariffs
Many UK energy providers now offer REGO-certified tariffs to help you meet ESG and Net Zero targets.
📍 Battery storage
Install industrial batteries to store excess energy, reduce peak-time usage, and avoid grid surcharges.
FAQS 1. How can manufacturers reduce energy costs in 2026?
By implementing energy efficiency measures such as upgrading equipment, improving insulation, and using smart metering systems. Additionally, switching to green tariffs and considering on-site renewable energy generation can help lower long-term costs.
2. What is the best way to choose a supplier for my manufacturing business?
Look for a fixed-rate plan to mitigate price volatility, industry-specific tariffs, and dedicated account management for large or multi-site businesses, and smart metering and real-time monitoring are essential for tracking and optimising energy usage.
3. How can I make my manufacturing business more sustainable?
You can reduce your carbon footprint by switching to 100% renewable electricity, investing in solar panels, and using battery storage systems so participating in government-funded schemes like Salix Finance can also help you make energy-efficient upgrades.
4. What energy-saving technologies are available for manufacturers?
Technologies like smart meters, LED lighting, energy-efficient HVAC systems, and zoned heating can significantly reduce energy consumption. Investing in energy management systems helps optimise operations and track energy usage in real-time.
5. How can renewable energy help my manufacturing business?
Using solar, wind, or bioenergy systems reduces reliance on the grid and cuts costs and battery storage can store excess energy for use during peak times, and green tariffs support the transition to cleaner, more sustainable energy sources.
6. What government schemes support energy efficiency in manufacturing?
Schemes like Salix Finance and the Energy Savings Opportunity Scheme (ESOS) provide financial support for energy-saving projects. These initiatives can help offset the costs of upgrading equipment and implementing sustainability measures.
7. How does energy price volatility impact manufacturing businesses?
Energy price fluctuations can significantly affect profit margins, especially for energy-intensive manufacturers. Fixed-rate contracts and energy-saving measures help mitigate this risk and maintain stable operational costs.
Here is a Handy Youtube Video About Manufacturing Gas and Electricity
Related Business Energy Guides Compare & Switching Guides Sector-Specific Energy Guides Tariffs, Pricing & Market Explained Meters, Technical & Admin Guides Green & Renewable Energy Options Major UK Business Energy Suppliers Cost Reduction & Strategy Market & Government Updates Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
