How Facilities Managers Can Take Control Of Rising Energy Costs
The UK is burdened with some of the world’s highest electricity prices, a strain that threatens competitiveness and drives up consumer costs. In fact, 70% of companies expect to become less competitive in the next two years due to rising energy bills, while 81% of businesses plan on raising prices to offset costs. With no sign of relief, facilities managers have a critical role to play in reducing energy expenses, improving resilience, and turning buildings into energy assets.
Rethinking Buildings As Energy Assets
Facilities managers need to turn their buildings into energy assets. In simple terms, this means incorporating capabilities which enable the building to generate, transmit and store power its own power. Technological advancements are making this ambition increasingly accessible. The cost of on‑site renewable generation has plummeted since 2010, with lifetime costs for solar and onshore wind now 88% and 68% lower, respectively. Meanwhile, the price of batteries has dropped by over 90% in the last 15 years.
Pairing on‑site energy storage with a smart energy management system allows facilities managers to reduce costs and improve resilience of their buildings. The system helps shift energy use to off‑peak periods, storing electricity when it is cheaper and using it when grid prices rise. As dynamic tariffs, a system whereby the price of electricity rises with energy demand become more common, businesses that can adapt their energy consumption in real time will see the greatest savings.
Beyond cost reduction, demand response programmes offer businesses an opportunity to generate additional income by adjusting energy use during peak demand. Energy storage solutions not only support this flexibility but also create the potential to sell excess stored energy back to the grid. This transforms energy management from a cost‑saving exercise into a potential profit driver.
Prioritising Progress
The waiting list for grid connections in the UK currently sits at 3,300 electricity projects. Behind this figure are businesses suffering costly delays as they wait to connect their projects to the grid. These bottlenecks are stalling investment in renewable energy and EV charging infrastructure, slowing down both decarbonisation efforts and growth opportunities.
Rather than waiting, facilities managers can ensure their building can continue its progress by installing microgrid technology and flexible energy solutions. On‑site generation, storage, and energy management systems allow businesses to reduce their reliance on the grid and integrate new projects without delay. Making these investments now could help unlock stalled projects, reduce exposure to grid constraints, and accelerate progress against sustainability commitments.
The Business Case For Sustainability
While increasing sustainability within commercial buildings aligns with both businesses and the UK’s net zero goals, the benefits go further than this. Investing in energy‑efficient buildings helps businesses lower operational costs, improve asset value, and future‑proof against rising energy prices and tightening regulations.
Sustainability is also a market differentiator. Businesses and consumers are prioritising sustainability in their decision‑making, meaning companies with greener buildings are more likely to win new partners and retain customers.
Rising energy costs and grid limitations are creating challenges for businesses, but facilities managers have the power to turn these obstacles into opportunities. By treating buildings as energy assets, embracing smart energy management, and investing in flexibility, they can cut costs, improve resilience, and unlock new revenue streams.
The choice is clear: invest in smarter energy solutions today or risk being left behind in an increasingly volatile market.
