Energy prices are on the rise again, creating fresh challenges for businesses across the UK. With the latest 2025 energy prices increasing by 6.4% from the first quarter of the year, companies are facing higher costs and growing uncertainty. So, what can businesses do to take control and protect themselves from these unpredictable price fluctuations?
Understanding the energy price cap and its impact on businesses
The 2025 energy prices are shaped by the energy price cap, which limits what suppliers can charge for default tariffs. This cap has now risen to £1,849 for a typical household. While this is primarily a consumer figure, businesses are feeling the pressure too. With the next price cap review set for May 2025, the uncertainty around future costs remains a major concern for business owners trying to plan ahead.
Why are 2025 energy prices rising?
The biggest factor behind the increase in 2025 energy prices is the rise in global wholesale gas prices. Because the UK still relies heavily on gas, businesses are vulnerable to shifts in international markets. Some of the key reasons for these price hikes include:
- Geopolitical tensions: The ongoing Russia-Ukraine conflict has led to the shutdown of major gas pipelines to Europe.
- Global market influence: The UK imports liquefied natural gas, which means its prices are tied to global demand and supply.
- Supply challenges: Wholesale gas prices have climbed by 15% since early 2025, driving up costs for businesses and households alike.
How the UK stacks up against other european countries
Some European nations have been able to keep their energy costs lower by reducing their dependence on gas. For example:
- Norway relies heavily on hydropower, keeping its electricity costs stable.
- France has invested significantly in nuclear power, insulating it from gas price swings.
- Spain has expanded its renewable energy sector, particularly in solar and wind, making it less vulnerable to fossil fuel price changes.
How businesses can take control of their energy costs
Rather than leaving your business exposed to the unpredictability of 2025 energy prices, a smarter approach is to generate and store your own electricity. Investing in solar power and battery storage offers a reliable, long-term solution that helps businesses stabilise costs and reduce their reliance on the volatile energy market.
Key business benefits of solar and battery storage:
- Lower operating costs: By generating your own power, you can significantly cut down on expensive grid electricity.
- Protection against price hikes: Solar and battery storage give you greater energy independence, reducing exposure to fluctuating tariffs.
- Sustainability and ESG compliance: Moving to renewable energy supports sustainability goals and helps businesses meet environmental regulations.
- Energy resilience: With battery storage, you can store excess solar energy for use during peak pricing periods or power outages, ensuring continuity.
Futureproof your business against 2025 energy prices
With 2025 energy prices set to remain unpredictable, now is the time for businesses to act. Switching to solar power and battery storage isn’t just about cost savings – it’s a long-term investment in energy security and business stability.
At Harvest Green Developments, we specialise in helping UK businesses transition to sustainable energy solutions, cutting costs and reducing reliance on the grid.
Secure your energy future today
Don’t wait for 2025 energy prices to rise even further. Get in touch with us today to discover how solar power and battery storage can benefit your business and protect your bottom line.
