How to Prepare Your Business for Future Energy Challenges

Businesses face an ever-evolving energy landscape and 2025 will bring a new set of challenges and opportunities for business owners. 

Businesses across the UK understand that achieving carbon neutrality is a priority and that keeping up to date with current trends is vital to remaining competitive and to reducing environmental impact. There’s a lot for business owners to navigate today with regulatory changes, technological advancements, stakeholder expectations and the need to align with global climate goals. 

In recent years, the UK has had to contend with an energy crisis that has been marked by soaring energy prices. According to the Federation of Small Businesses (FSB) small businesses have experienced a staggering rise of 424% in their gas costs and 349% in their electricity costs since February 2021 making it even more important to put measures in place to safeguard your business’s financial stability. 

If you are a business owner in 2025 you need to face the challenges head on with proactive planning, investment in efficiency, and a commitment to sustainability. You can turn the challenges into opportunities for growth and leadership by being open to new ideas and technologies, focusing on resilience and by engaging experts. 

There are many ways in which your business can prepare for the future and at the same time optimise energy usage and reduce costs. Here’s a list of things to consider which this article will cover in more detail later:

• Conduct an energy audit to identify inefficiencies
• Invest in energy-efficient technologies
• Look into renewable energy sources like solar or wind power
• Implement smart grid solutions
• Educate employees on energy conservation practises
• Develop a long-term energy strategy that aligns with sustainability goals. This includes keeping an eye on market trends, considering potential policy changes, and planning for potential disruptions in energy supply. 

Before embarking on any of this it’s particularly important that you are aware of new stricter regulations and an increased focus on carbon reduction. One key development is the UK’s Energy Savings Opportunity Scheme (ESOS) Phase 4 and mandatory carbon reduction plans under ISO 14068 which signals a shift towards enforceable efficiency actions. While mandatory carbon reduction plans strictly following ISO 14068 are not currently enforced, there is a significant emphasis on organisations demonstrating their commitment to net zero by outlining detailed carbon reduction strategies and actions within their ESOS audits, effectively pushing businesses to develop plans that align with the principles of ISO 14068, even if not explicitly mandated by the scheme itself; this includes identifying risks associated with transitioning to net zero and mapping out emission reduction pathways.  

Here are some key strategies to consider:

1.    Invest in Energy Efficiency

Conduct regular energy audits to pinpoint any areas of high energy consumption and determine potential savings that can be made. Upgrade the infrastructure of your building by improving insulation, switching to energy-efficient lighting, sealing any air leaks, and upgrading heating and cooling systems. These measures can lead to substantial savings. LEDs for example use considerably less energy, last longer and emit less heat. It’s also worth evaluating and potentially replacing outdated equipment with energy efficient models. Installing smart devices will also help with energy efficiency as they can automatically adjust power consumption based on usage. Smart thermostats, occupancy sensors and power strips can all optimise energy usage. Another way of being ahead of the game is to introduce energy management systems which use advanced software to monitor and optimise energy usage. This will allow you to make changes in real-time. By investing in efficiency measures now you will be better placed to handle future cost pressures and regulatory demands.

Now is the time if you have company vehicles to go all electric. This will not only reduce your running costs but also lower your carbon emissions. If you also install a workplace EV charging point for your employees, it’ll be sure to raise the morale and productivity of your staff. 

2.    Switch to Renewable Energy Sources

Transitioning to renewable energy sources such as solar and wind power can reduce your reliance on fossil fuel energy making your business more energy independent as well as significantly lowering your carbon emissions. Installing solar panels or wind turbines on-site will not only save you money and protect you from volatile energy markets but also shows your commitment to environmental sustainability and corporate social responsibility. Although the initial set-up costs for solar or wind may be high the long-term benefits are worth the investment.

Renewable energy will remain a vital element of our future energy strategy, and your business should source its energy from renewable providers to ensure it aligns with net zero goals. You should also explore power purchase agreements (PPAs) which are long-term contracts between an electricity generator and a customer, usually a utility, government, or company. 

3.    Embrace technology and innovation

Technology will play an important role in dealing with the energy challenges that we face in the coming years. As a business owner you should consider AI-Driven energy optimisation. Artificial intelligence can analyse huge amounts of data to suggest energy-saving strategies, forecast maintenance needs, and optimise renewable energy integration. 

You should also look at collaborating with utilities to use smart grids which can help improve energy reliability and reduce energy costs for your business. You can take part in programmes that allow utilities to adjust energy usage during peak demand times. It’s a good idea to install smart meters so that you can monitor energy consumption in real-time and identify usage patterns. Smart grid technology will also allow you to use systems that can automatically adjust heating, cooling, and lighting based on occupancy and environmental conditions. 

As you generate more renewable energy the need to store some of this energy becomes important in order to manage renewable energy fluctuations. It’s worth investigating battery storage systems and putting a plan in place for energy storage to ensure a consistent energy supply. 

4.    Educate and Engage Your Employees

Your employees play a vital role in achieving energy efficiency for your business. Train your employees in best practises by educating them to identify and reduce energy wastage in daily operations. You can make this more attractive to employees by offering incentives to reward energy-saving ideas and behaviours. Energy saving practises can be as simple as turning off lights, computers, and other equipment when not in use. It’s worth fostering a culture of sustainability by regularly sharing your energy goals and achievements. Employees buy-in is key to creating a culture of accountability and innovation. 

There are other benefits to energy-efficient buildings for employees as they can provide a more comfortable and productive work environment. Indoor air quality is improved with optimised lighting, heating and ventilation systems which reduces the risk of health problems such as allergies and respiratory illnesses. Your employees are more likely to be happy in their work in well-lit and comfortable workspaces. 

5.    Create a long-term Strategic plan

Develop a long-term plan that outlines your energy goals, investment strategies and the potential risks that could come with future energy challenges. 

Make sure that you’re always aware of any upcoming energy regulations and potential policy changes that could affect your business.

Keep abreast of research into emerging technologies and market trends so that you spot potential opportunities for innovation. 

Although reducing carbon emissions should be the priority you might want to consider partnering with trustworthy offsetting organisations such as reforestation initiatives or renewable energy projects in developing countries to address any residual emissions you might produce. 

6.    Engage with Your Supply Chain

If you collaborate with your suppliers to align sustainability goals it can lead to systemic change. To achieve this, set sustainability standards, conduct regular audits, and incentivise suppliers to lower their emissions. 
In today’s world businesses face many challenges, energy efficiency being one of them. It is prudent to invest in energy efficiency for your business now if you want it to succeed in the long-term.