By Mypower Commercial Solar Professionals
UK businesses are once again facing a sharp and immediate rise in energy costs. Recent analysis suggests electricity prices could rise by up to 30%, with gas costs increasing by as much as 80%, driven by the ongoing conflict in the Middle East and tightening global supply.
For the aluminium sector, this is a critical threat to operational viability. For many members renewing contracts this April, this isn’t a gradual increase. It’s an overnight jump in operating costs. Unlike households, there is no price cap, no safety net, and limited protection from this volatility.
The Reality for the Aluminium Industry
This latest spike exposes a fundamental issue in the UK energy market: manufacturers are fully exposed to global energy price shocks. The challenges are particularly acute for the sector:
- Sudden material increases in operating costs
- Margin erosion
- Reduced competitiveness
- In some cases, there is a real risk to business viability
How Do You De-Risk Energy Costs?
In the current climate, aluminium businesses typically have three options:
- Do nothing and remain fully exposed to market volatility and unpredictable “overnight” price hikes.
- Try to time the market, which is an increasingly difficult task, even for large corporations with dedicated procurement teams.
- Take control of a portion of the supply. This is where solar PV becomes a commercially compelling strategic move.
Solar PV is Now a Financial Decision
Commercial rooftop solar is no longer just about “going green”. It is about risk management and cost control. For an industry where energy can represent a vast portion of total production costs, the numbers are hard to ignore:
- Generate 30-40% of your electricity on-site.
- Lock in energy costs at around 4-5p/kWh for the next 25+ years.
- Reduce reliance on the grid, where pricing is currently c.20p/kWh and rising.
- 3-5 year payback periods. These are often faster during periods of high grid pricing.
- Benefit from the Annual Investment Allowance (AIA), allowing 100% of the system cost to be offset against taxable profits in year one.
Why continue to pay 20p/kWh or more for the entirety of your load when you could generate a significant portion of it for approximately 5p/kWh?
Taking Action
Across the UK manufacturing landscape, we are seeing a marked shift. Businesses are no longer viewing solar as a “next year” project. Instead, they are:
- Accelerating “on-hold” projects to mitigate the April price hikes.
- Seeking board-level clarity on ROI and long-term energy resilience.
- Prioritising non-disruptive solutions that can be installed without halting production lines.
Ultimately, you cannot control global energy markets, but you can control how exposed your business is to them. Solar PV provides the stability and predictability that the aluminium industry needs to remain competitive on a global stage.
Next Step: Your Desktop Assessment
If you’d like to understand how solar could reduce your exposure to rising energy costs, Mypower can provide a no-obligation, desk-based assessment using your actual consumption data.
This will provide a clear view of your potential system size, projected savings, and the specific payback period for your site.
