Business energy market update

Running a business leaves little time to keep track of every development in the energy world. With the events in Middle East impacting business confidence, costs, and competitiveness, here is a round-up of what else is happening in Britain’s energy landscape and what it could mean for your business. Here's what stood out this month. 

Solar delivers record share of Britain’s electricity mix

Solar supplied more electricity to the grid in July 2026 than in any previous month. A record 14.4% of Britain’s electricity mix came from Solar.

The previous record was set only two months prior, when solar delivered 12.4% of May 2026’s electricity mix. It’s also a significant increase from this time last year. Back in May 2025, only 9.6% of electricity came from Solar. The record-breaking month was helped by long periods of sunny weather.

Why this matters to businesses:

• It highlights the growing importance of renewable energy on Britain’s electricity system
• More businesses are investing in solar to help manage energy costs and reduce reliance on the grid
• Our recently-announced Fixed Solar Saver option will enable businesses to access solar with no upfront costs

This graph shows you how much electricity has been generated by Solar in Britain from 2016 to now.

British businesses pay 45% more for electricity than international competitors

New research from the CBI and Energy UK highlights that British businesses pay around 45% more for electricity than the rest of the G7ii (Canada, France, Germany, Italy, Japan, the US and Britain).

Most of our country’s major energy and decarbonisation policies are funded through electricity bills, rather than through general taxation – making our electricity bills more expensive than other countries.

The report sets out a package of recommendations designed to reduce business energy costs and reform the energy system, which they say could unlock £130 billion of additional economic activity between 2027 and 2050.

Why it matters to businesses

• While the report is mainly aimed at policymakers, it reinforces how important energy costs remain to long-term business success and competitiveness.
• Higher electricity costs can make it harder for businesses to invest, grow and compete.
• For smaller businesses especially, reducing operating costs can help free up money to invest elsewhere in the business.

Uncertainty weighs on business confidence

Latest findings from the ICAEW’s Business Confidence Monitor shows that business confidence has dropped to the lowest level seen since Q4 2022. 

Geopolitical risk was the most widely cited growing challenge for businesses, reported by 65% of companies. The resulting impact that geopolitical challenges are having on energy prompted 55% of businesses in the survey to report energy costs as a growing challenge, up from 35% in Q1 2026.

Why this matters to businesses:

• It demonstrates how global events can affect costs closer to home
• Lower confidence can make businesses more cautious about investing and growth
• Managing costs and improving efficiency remains a key priority for many organisations.

Keep an eye out for: the British Industrial Competitiveness Scheme

In April 2027, the Government plans to launch the British Industrial Competitiveness Scheme (also known as BICS). This is a new scheme aimed to cut energy bills for over 10,000 eligible manufacturers. 

Under the scheme, the Government expects that eligible manufacturers will see their bills cut by up to 25% with potential savings of around £35-40/MWh. The Government has also committed that households and businesses who aren’t eligible won’t see their energy bills increase in order to fund the scheme.

Why this matters to businesses:

• Lower energy costs could help eligible manufacturers improve competitiveness and free up budget for investment, growth and job creation.
• It highlights how energy costs remain a major issue for UK industry

Ready to review your business energy options?

Understanding what's happening in the energy market can help you make more informed decisions for your business. If you're thinking about changing business energy supplier, we're here to support you every step of the way.

In this article

• Solar delivers record share of Britain’s electricity mix
• British businesses pay 45% more for electricity than international competitors
• Uncertainty weighs on business confidence
• Keep an eye out for: the British Industrial Competitiveness Scheme
• Ready to review your business energy options?

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