Protecting C&I Sites against energy price disruption with a solar shield

Alexander Vit, Commercial Director at Clean Energy Capital

Near-site solar power presents a way for UK energy managers to decarbonise their operations while insulating themselves against grid volatility.

Over the past five years, Energy Managers in the UK have had to contend with a series of seemingly intractable challenges. The country’s commercial and industrial (C&I) energy market has suffered repeated pricing disruptions since the 2022 energy crisis, when record spikes in the price of natural gas almost saw UK consumers face an 80% energy price cap increase before the government stepped in.

A string of macro-scale events, outside of any Energy Manager’s control, conspired to cause the recent energy price instability. Events like the Russian invasion of Ukraine disrupted natural gas and power markets in Europe. In addition, an underperforming French nuclear fleet exacerbated price increases because normally the UK buys a percentage of its power via large subsea cables called interconnectors and this supply became uneconomic. The impact of both offshore events materialized in the sustained high wholesale market energy prices, which was paid for by government, businesses, and consumers.

The prospect of insulating individual sites from pricing volatility is a routinely difficult task for energy managers, even in 2025. However, there are funded decarbonisation solutions that can act as an energy price hedge.

The UK’s efforts to become a more energy independent “clean energy superpower” are progressing and renewables penetration is increasing at an encouraging rate. On April 1st, 2025, Great Britain achieved a new maximum solar generation record.

To meet the government’s Clean Power 2030 goals, the country’s power system will need to see “clean” energy sources produce at least as much power as Great Britain consumes in total over the whole year, with at least 95% of the power generated in the UK. Wind and solar need to reach approximately 80% share of the country’s energy mix in the next five years to achieve this, meaning that investment into renewables innovation, research, manufacturing, and construction will be pivotal.

So far, the current government has taken encouraging actions to decrease development barriers for renewables projects. The de facto ban on new onshore wind has been lifted. Recent planning rule changes have empowered local authorities to determine smaller projects thus decreasing the cost and admin burden created by central government processes. More needs to be done to unlock investments. There is nearly twice as much solar energy capacity in planning (27 GW) as the total amount that has ever been built in the UK (15.5 GW).

However, these larger renewables projects feed power into the grid, where the benefits are realised indirectly. Data centres and UK industry need to look at direct contracting strategies to secure direct benefits. The increasing viability of locally generated solar power presents an avenue for large power users to achieve annual energy cost savings and secure a hedge against future price disruptions. The two best technical solutions underpinning the hedge are onsite and nearby offsite renewables.

The simplest onsite solution is rooftop solar. Rooftop solar represents a significant source of growth for the UK’s solar capacity. There are currently 1.6 million rooftops fitted with solar technology in the United Kingdom, with more than 200,000 non-residential buildings also having been equipped. The UK’s warehousing stock has the necessary unused roof space to accommodate up to 15GW of new solar infrastructure — essentially doubling the UK’s solar PV capacity as of 2023. Building out PV solar on the largest 20% of the UK’s warehouses would provide 75 million square meters of roof space, avoiding the need to develop new land equivalent to the footprint of around half a million homes.

However, rooftop solar still doesn’t offer material impact for larger facilities like hyperscale data centres or complex industrial sites, simply because their roofs are too small. The UK’s largest power users need megawatts and gigawatts – not kilowatts. Therefore, to bypass spatial limitations, projects are often built offsite. Connecting one or more dedicated generation assets, via a private wire, to a large energy consumer’s site can provide the necessary solution at scale.

From a development and delivery perspective private wire projects are faster than grid connected renewables. Grid connection queues and costly reinforcement works are bypassed because most generation is consumed onsite and by the end user. Little volume spills over into the grid, if any. Planning for such projects is often viewed favorably because the dedicated renewables asset is being built to decarbonise a large regional employer.

As the decade continues, the UK’s power grid will become increasingly overloaded, leading large power users to face potentially painful power constraints unless urgent grid upgrades are undertaken. At a business level, power from the grid must enable all energy users to pursue the decarbonisation of their business activities. Electrification of heat and transport initiatives are too often stalled or halted due to grid upgrade requirements. These costly delays or upgrades often force customers to seek on-or-near-site solutions. The emergence of new power-hungry demand segments like hydrogen electrolysis and AI Data centres creates additional grid upgrade requirements of uncertain magnitudes.

For large energy users, the renewables business case is driven by cost certainty and cost savings. Long term renewable energy supply agreements are 30% cheaper than grid electricity because private wire projects don’t pay non-commodity costs. These cost savings create a defendable competitive advantage which allows eligible sites to outperform their competitors.

Though desirable, renewables projects are complicated and often create distractions for Energy Managers with competing priorities. Turnkey and funded solutions exist. Capex free solutions have the additional benefit of enabling large energy buyers to allocate scarce capital towards core business growth initiatives. Price certainty is achieved through different pricing and product structures. If the renewable asset is not generating because it’s not sunny or windy, the ability to import from grid remains provides resiliency and a safety net.

The UK is on track for a clean energy future but getting there will require steep renewables adoption. In the meantime, energy managers can’t afford to be at the mercy of the grid. Investing time to understand near-site renewable options is a simple step that C&I energy managers can’t afford not to explore.

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

Light Monitoring Dashboards: A Revolution in Energy Management

There’s a new technology setting the lighting field alight. Promising easy and efficient energy optimisation, reduced costs and streamlining maintenance and reporting processes, it is revolutionising management of the built environment. We spoke with Chris Anderson, Technical Manager at Ansell Lighting who reveals more about this game-changing innovation and its potential to transform energy use associated with lighting.

With ever increasing energy prices and continuing sustainability targets to meet, finding new ways to help optimise energy use in buildings are a welcome development for property owners and operators alike.

In the lighting arena, one new innovation is promising just that: light monitoring dashboards.

Paired with smart lighting systems, light monitoring dashboards are a brand-new technology that can provide users with the extensive insights needed to manage lighting use intelligently and effectively.

Providing comprehensive insights into a building’s lighting infrastructure at a glance, they act as a ‘hub’, collecting real-time information from smart fittings and presenting them in a user-friendly interface to provide full visibility of the lighting infrastructure at a glance.

Recording and storing details such as energy consumption per fixture, occupancy patterns, brightness levels, temperature/environmental conditions around fixtures and maintenance alerts, they are enabling lighting environments to be monitored, managed, and optimised like never before.

From an energy management perspective, light monitoring dashboards are a complete game-changer, providing operators with the ability to reduce energy use from both lighting in operation, as well as an organisations wider carbon footprint.

Light monitoring dashboards can be used to provide real time data on energy consumption, offering granular insights into how, when, and where energy is being consumed. This insight is not limited to single buildings but can be used to view connected installations across multiple buildings and estates.

Users are able to track patterns, identify inefficiencies, and make data-driven adjustments as required. For example, businesses can pinpoint underutilised areas where lights have been left on unnecessarily, or access information on peak usage times to adjust their schedules accordingly. This capability not only enhances energy efficiency but also reduces carbon emissions, supporting broader sustainability initiatives.

Maintenance and management procedures can also be greatly streamlined with the introduction of light monitoring dashboards again supporting carbon footprint reduction. By providing a central hub to track the performance of all smart lighting fixtures, the need for in-person manual inspections is eradicated. Similarly, the statutory testing of emergency and non-emergency luminaires can also be carried out at the touch of a button without the need to make and in-person visit to site. This is particularly useful over multiple building campuses and estates, minimising the use of vehicles and reducing associated carbon emissions and energy consumption.

The technology can also help improve factors such as product longevity, again improving sustainable practices within the organisation. For example, temperature readings might reveal a light fitting is installed too close to a heat source which can lead to overheating and premature wear. By identifying such issues early, operators can make necessary adjustments, such as relocating the fixture or addressing the heat source, helping to prevent damage and extend the fixture’s lifespan. This proactive approach not only reduces maintenance costs but also minimises waste by ensuring products are used to their full potential.

Whilst not directly related to energy use, another major benefit of light monitoring dashboards is that they act as a central hub on which all lighting data and reports can be accessed and stored. This greatly simplifies reporting procedures and means that the status of every lighting device can be viewed in one place. This is extremely useful for those responsible for energy management within organisations, streamlining reporting procedures and ensuring accurate information is readily available whenever it may be needed.

Considering that lighting generally accounts for between 20 and 40% of a company’s electricity use, technology that can support energy optimisation has the potential to make a huge impact. As organisations continue to work towards net zero, every kilowatt of energy used counts.

Light monitoring dashboards are a powerful tool available to energy managers that can help them to make meaningful reductions to energy use, cut operational costs, and achieve ambitious sustainability goals. Unlike traditional methods of managing lighting—such as manual controls and standalone systems, the technology provides actual, real-time data, giving organisations the ability to make more informed decisions that will have a real impact on consumption and will support the wider achievement of environmental, social, and governance (ESG) targets.

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

How a Carbon Reduction Plan can make your organisation procurement ready

As organisations transition to carbon neutrality and net zero, the expectations for their suppliers to follow suit is increasing. For suppliers to the public sector, this is no longer an expectation but a requirement.

Under the PPN 06/21, suppliers must have a formal plan to reduce their business emissions if they want to provide goods or services to the public sector, including the NHS.

Natalia Block, Analytics Consultant here at TEAM, explains the importance of a Carbon Reduction Plan (CRP) and how it can support a business’ approach to procurement.

What is the Procurement Policy Note 06/21?

PPN 06/21 mandates that suppliers with central government contracts exceeding £5 million, as well as all NHS contracts, must have a strategy in place to reduce their business emissions and overall environmental impact.

Based on the contract value, suppliers with high-value contracts must produce a comprehensive carbon reduction plan, while lower-value contracts can submit a Net Zero Commitment.

The introduction of the PPN 06/21 represents a shift in how procurement contracts in the public sector are appointed. Organisations in the supply chain will be required to show consistent progress in reducing their carbon emissions, rather than simply having good intentions.

Why is a carbon reduction plan important?

An organisation’s supply chain can account for up to 90% of its total carbon emissions. Therefore, suppliers can play a vital role in a business’ carbon reduction and whether it achieves its net zero goals.

Certain emissions, such as those directly produced by the assets of a business (Scopes 1 and 2), are within a company’s control to manage and reduce. However, emissions in a business’ supply chain (scope 3) are harder to manage and reduce. Asking suppliers to create a CRP and commit to more sustainable practices, can support an organisation’s own plans to reduce its emissions.

The aim of a CRP is not to replace existing sustainability reporting within a business but to demonstrate that it is committed to reducing the impact it has on the planet and how it intends to achieve the goals it has set out.

Getting supply chain ready

The NHS is aiming to become a net zero health service, with the target to reach net zero for the emissions it can control by 2040 and the emissions outside of its influence, such as suppliers, by 2045.

NHS contracts are valued at over £6 billion a year, and organisations that provide these goods and services will be expected to produce a CRP to support the institute in its own transition to net zero.

Suppliers to the NHS are required to:

Make a formal commitment to achieving net zero by 2050 or earlier
Publish a link to their carbon reduction plan publicly on their website using a PPN 06/21 template as a minimum
Monitor and record their scope 1, 2 and certain categories for scope 3
Outline the steps they have planned to take to reduce their carbon emissions

These expectations do not just come from the public sector, organisations should be mindful that increasingly more customers in the public and private sector may need them to provide their decarbonisation plans for successful procurement. If a carbon reduction plan is not in place, businesses risk losing out on potential or recurring contracts. By having a CRP, businesses are able to stay ahead of industry changes and the evolving expectations of their customers.

Creating systemic change

The PPN 06/21 marks a key change in procurement, driven by the UK Government’s target to be net zero by 2050, it uses supply chains to leverage positive change in decarbonisation.

Shifting the way contracts are appointed and prioritising sustainability in business creates a ripple effect that trickles down supply chains to their customers, making reporting and reducing emissions easier for all businesses.

www.teamenergy.com

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

The hidden costs of PR24: Understanding the real impact on businesses

As the uncharted waters of the regulatory landscape shift with PR24, businesses need to understand that the true cost of these changes will be far greater than the headline figures suggest.

The average percentage increase, while striking, doesn’t capture the real financial burden on large businesses. At Waterscan, we’ve spent the past month analysing the PR24 final determination (FD) to better understand how our customers—particularly those in the self-supply community and other large users—will be affected.

The headline numbers, such as the average 36% increase in household bills over the next five years, paint an incomplete picture. While these figures may seem manageable at first glance, they fail to fully convey the actual impact on businesses, particularly in the first year when prices will rise much more sharply than the overall average suggests.

Front-loading and inflation: The unseen costs

The first and most significant issue that businesses need to recognise is the front-loading of price increases. Ofwat’s documents discuss an average 36% increase over five years, but this statistic obscures the reality that the first year alone will see an average 20% price rise. With inflation also excluded from these quoted numbers, the real cost is far more significant. In practice, businesses may be facing increases of 50% or more, depending on their consumption levels and tariffs.

We’ve also seen that in some cases, the cumulative effect of inflation will push the overall increase to as much as 53%, and for some businesses, particularly those in high-cost regions, price rises could reach up to 100% by the time all factors are taken into account. The financial strain of these increases cannot be overstated.

As Neil Pendle, CEO of Waterscan, explains: “The headline numbers provided by Ofwat simply do not reflect the true financial burden that businesses will face. The price rises are more front-loaded than most realise, and the lack of clarity around inflation and tariff changes will hit businesses hard. Delaying decisions, such as retendering water contracts, could cost companies hundreds of thousands in unanticipated additional costs.”

The disconnect between real and reported price increases

While the PR24 documents focus primarily on average increases in household bills, the reality for businesses is very different. Water companies have applied tariff changes across varying consumption levels, meaning that large users will face much higher price hikes than the average 36% increase that Ofwat reports.

For example, in some regions, businesses may see tariff increases between 40% and 54% for water supply and waste costs. This isn’t just an incremental rise—it’s a significant cost shift, with some businesses likely to see their water bills nearly double.

The pricing structure changes don’t stop there. Many water companies are moving away from the falling block tariff system, which historically benefited high-consumption businesses. This shift will disproportionately affect larger users, compounding the already steep price rises. It’s an industry trend that has been building for years but is now reaching its tipping point.

The real cost of delaying retendering

One of the most pressing issues we’re seeing is that many businesses are delaying retendering their water contracts in response to PR24. Unfortunately, this delay can be incredibly costly. As tariffs rise, businesses that have not already retendered their contracts could find themselves locked into unfavourable deals that reflect outdated pricing models.

With price increases front-loaded, companies that are slow to act will face higher costs than necessary. This delay could result in businesses spending hundreds of thousands more than if they had proactively renegotiated or retendered their contracts ahead of the impending price hikes. The financial impact will be felt immediately, and the longer businesses wait, the more they stand to lose.

The urgency for transparency and action

What businesses need now is transparency and clarity. Waterscan has worked to provide our customers with the most accurate information possible, so they can make informed decisions about how to manage these price increases. The lack of clear communication from Ofwat and the water companies regarding tariff changes, inflation adjustments, and price front-loading only adds to the complexity.

This is a critical moment for businesses to act. Understanding the full impact of PR24 is essential for ensuring that you can manage costs effectively and avoid the financial pitfalls that are emerging in the wake of these regulatory changes.

A call to action for businesses

We strongly advise businesses to take action now to understand how PR24 will impact their water costs. Delaying retendering or contract renegotiations could result in significant financial losses. Instead, businesses should take advantage of the current window to renegotiate contracts, explore alternative water sources, and implement more efficient water management practices.

This is an opportunity for businesses to look beyond the immediate price hikes and embrace innovation in water management. By adopting smarter water solutions, businesses can mitigate the impact of these price rises and build resilience for the future.

As Neil Pendle concludes:

“The business fundamentals around water efficiency have materially changed. Investing in innovative water management now will not only help companies reduce their exposure to rising costs but also provide opportunities for long-term sustainability and growth.”

Conclusion

The PR24 price increases will have a far more significant impact on businesses than many are prepared for. The actual cost of these changes will be felt most acutely by those who are slow to act, particularly when it comes to retendering and adjusting water usage strategies. Businesses must be proactive, transparent, and strategic in their response to these regulatory changes.

Waterscan is here to help businesses navigate this complex landscape, ensuring they can manage rising costs while also driving innovation in water efficiency. The sooner businesses act, the better they will be positioned to manage the impact of PR24 and thrive in a changing market.

https://waterscan.com/

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

Rinnai Responds to Consultants and Specifiers with New CPD Additions

Sign up to our wide range of CPDs today as places are running out https://www.rinnai-uk.co.uk/training/cibse-cpd-training-enrolment

Rinnai is dedicated to providing UK customers, specifiers, installers and system designers with consistently updated information regarding products, energy policy and energy market regulation amendments.

CPDs are readily available to view and can be located on Rinnai’s “Training” webpage where the visitor should follow the CIBSE CPD & Training and Enrolment title. Here the customer can choose from a wide selection of subjects that include:

Lifecycle cost and operational carbon of heating systems.
Condensing, continuous flow hot water heaters design and specification.
Moving towards interoperability in building services control.
Hot water provision in commercial applications – minimising legionella risk and maximising system efficiency.
Meeting the growth in demand for domestic hot water with efficient, controllable systems.
Assessing life-cycle costs of delivering domestic hot water in commercial applications.
Reduction and prevention of limescale in continuous flow hot water systems.
Delivering value-engineered building services solutions.
SPF – Season Performance Factors and Heat Pump Design

Says Chris Goggin for Rinnai, “We understand the need for consistently updating skills and information in an ever-shifting global energy industry that is open to external geopolitical influences. Therefore, Rinnai will continue to offer UK customers a rich selection of energy related content located at www.rinnai-uk.co.uk

“Continuous access to training, CPD’s and decarbonising energy product information will result in the UK customer, specifier and installer maintaining a clearer understanding of heating and hot water options and clean energy direction. By obtaining factual knowledge both customer and professional can make better informed decisions in system purchase.”

Rinnai’s range of fully accredited CIBSE CPDs concentrate on commercial heating and hot water design, efficiency and product specification across a range of heat pumps, gas-fired water heaters and electrical heat generators can be found at https://www.rinnai-uk.co.uk/training/cibse-cpd-training-enrolment

RINNAI OFFERS CLEAR PATHWAYS TO LOWER CARBON AND DECARBONISATION PLUS CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC AND OFF-GRID HEATING & HOT WATER DELIVERY

www.rinnai-uk.co.uk/about us/H3

Rinnai’s range of decarbonising products – H1/H2/H3 – consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gas in any configuration of hybrid formats for either residential or commercial applications. Rinnai’s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions.
Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.
Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours.
Rinnai offer carbon and cost comparison services that will calculate financial, and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question.
Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPD’s.
The Rinnai range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnai’s website and its “Help Me Choose” webpage.

RINNAI FULL PRODUCT AVAILABILITY 24/7 FOR NEXT DAY DELIVERY of ALL HOT WATER HEATING UNIT MODELS INCLUDING 48-58kW UNITS-

SAVINGS OF

20% REDUCTION of opex cost,

30% REDUCTION of initial cost

15% REDUCTION in carbon

75% REDUCTION of space

Visit www.rinnai-uk.co.uk Or email engineer@rinaiuk.com

For more information on the RINNAI product range visit www.rinnaiuk.com

This article appeared in the June 2025 issue of Energy Manager magazine. Subscribe here.

The role of distribution network operators in domestic retrofit

Dean Firth, Senior Technical Manager, Salix

Since the introduction of PAS2035 in 2019 the mantra of domestic retrofit has been fabric first.

With space heating accounting for around two thirds of a typical home’s energy load (https://www.gov.uk/government/statistics/energy-consumption-in-the-uk-2024), reducing that load by trapping as much heat inside the building as possible makes good sense; especially when it has the bonus of increasing thermal comfort, tackling chronic cold, and reducing the risk of damp and mould.

In the fabric first approach only once the building’s thermal efficiency is optimised should grid connected technologies such as solar PV, heat pumps, and batteries be considered.

Take a scenario of a single dwelling undergoing a programme of deep retrofit. External wall insulation (EWI) is installed along with roof and floor insulation in the first phase, completely insulating the thermal envelope of the building.

Here we might have our first interaction with the distribution network operator (DNO). In an example where best practice is followed, wall-mounted meter boxes would be relocated at the start of the first phase to avoid thermal bridging in the wall insulation. This is often a thorny issue, as moving meter boxes can cost upwards of £1,000, and the waiting list can be several months.

Also, the cost and response time varies from distribution network operator to distribution network operator with no standardised approach. As a result, meter boxes are often left in situ and uninsulated, which can cause a thermal bridge leading to patches of black mould on the internal wall.

In a second phase of retrofit, zero/low carbon technologies such as air source heat pump (ASHP), solar PV, and a battery array might be installed. The interactions with the distribution network operator here would be minimal: assuming an inverter of <3.68kW has been installed, a single G98 notification for the PV, heat pump, and batteries would be submitted by the installer up to 28 days after the commissioning date.

However, this picture changes when we move to retrofitting at scale, as is often the case in social housing schemes like the Social Housing Decarbonisation Fund (SHDF).

At Salix we act as delivery agent for the fund on behalf of the Department for Energy Security and Net Zero. Much of my work is involved in supporting grant recipients in the journey to net zero.

My job allows me to use my experience in retrofit to support colleagues at the Department and the delivery partner in understanding the real-world challenges of delivering retrofit. I find that my technical knowledge and expertise in industry practices goes a long way in providing context and insight to key decision makers.

In these schemes a social housing provider will apply to the government grant funding scheme to deliver retrofit at scale across their housing stock. The social landlord grant recipient might own all the houses on a street. In this instance it would make very good sense, due to the economies of scale, to retrofit the whole street at the same time.

Moving the heating load of a whole street from gas to electricity might very well overburden the local grid, which is likely to be old if the houses it serves are being retrofitted. In the same way, the unpredictable power fluctuations from a whole street of small solar arrays might be too much for the existing grid to handle. That is to say that the local substation and the electrical cables running to the houses would have to be radically overhauled to facilitate this upgrade.

Complicated, expensive, and time-consuming applications would have to be negotiated ahead of any large-scale install, and the cost of submitting the applications, as well as designing and delivering the grid upgrades will usually fall to the social housing provider. This is an externality which is not factored into the grant funding structure.

The result is that large-scale retrofit schemes at a single geographical location often radically scale back or forego entirety grid connected technologies.

There is no one clear solution to this multifaceted issue, but joined up thinking on the issue is certainly required. Dedicated domestic retrofit teams at distribution network operators might help. Another consideration might be adapting the structure of grant funding policy to allow for the cost of local grid reinforcement to be covered. Maybe the Great Grid Upgrade (The Great Grid Upgrade | Powering The Things You Love) should take large-scale domestic retrofit into account, as it upgrades the grid to accommodate large scale renewables onto the UK grid.

I’m passionate about retrofit, and especially in social housing, which I see as a chance to deliver real change at real scale.

Through my work at Salix, I hope to be a meaningful part of that change. This is a fascinating industry to work in, where every day we help to lift people out of fuel poverty as well as to drive down carbon emissions.

www.salixfinance.co.uk

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

Driving net zero with smarter and more sustainable buildings

Digital technologies are transforming buildings, making them more efficient, sustainable, and comfortable for occupants. But their biggest impact? Accelerating our path to climate neutrality. Joining us to explore how smart buildings are driving this change is Kas Mohammed, VP of Digital Energy at Schneider Electric UK&I.

The world of energy is set to change dramatically by 2030, driven by the shift towards renewables, hydrogen, and advancements in energy storage and AI-driven optimisation. For building operators, the message is clear: adapt or fall behind. Meanwhile, the UK and EU’s ambitious net-zero goals add further pressure on the building sector—one of the continent’s biggest polluters. The good news? Smart technologies offer a clear pathway to decarbonisation.

These innovations are essential for improving efficiency, optimising energy use, and reducing waste. Simple yet effective solutions, such as occupancy-based smart controls, automatically adjust HVAC, lighting, and plug loads, switching to energy-saving mode when spaces are unoccupied. Even small interventions like these can yield substantial results—reducing operational costs by as much as 22% on low-occupancy days. With electricity now accounting for 34% of total final energy consumption in buildings, optimising its use isn’t just beneficial—it’s imperative. Here’s how smart tech is shaping the built environment’s journey to net zero.

Driving a low-carbon future with sustainable buildings

If the EU’s goal of net zero by 2050 is to be met, the building sector must take decisive action. Fortunately, forward-thinking operators are already embracing smart technologies, laying the groundwork for a more sustainable future. The UK green building market, for instance, is projected to grow from £5.09 billion in 2024 to £13.2 billion by 2033—evidence that the shift is well underway. But this transition isn’t just about adopting best practices. As urban populations expand and new developments emerge, sustainable construction is key to ensuring cities grow responsibly.

To accelerate this shift, building owners need greater visibility over their operations. Without a deep understanding of where energy is consumed, used, and lost, meaningful reductions remain out of reach. The climate challenge is, at its core, an energy challenge—making intelligent technologies indispensable for providing the insights necessary to drive efficiency.

For existing buildings, retrofitting with smart tech is not just feasible but increasingly straightforward. Low-cost IoT sensors can be deployed throughout a facility to collect real-time data on occupancy, temperature, air quality, and energy usage. When connected to an overarching software management system, this data enables operators to make informed decisions, optimise energy consumption, and streamline maintenance. By leveraging real-time insights, they can reduce workforce requirements, tighten budgets, and ensure the efficient use of space.

Consider a facility struggling with temperature inconsistencies. By monitoring heat distribution, operators might discover that a particular room is poorly insulated. Instead of relying on assumptions or a costly audit, they can act immediately—installing high-quality, sustainable insulation to create an effective thermal barrier.

As smart technologies continue to evolve, buildings will become more adaptable. Rooftop solar panels, wind turbines, and even microgrids will integrate seamlessly into existing infrastructure, reducing reliance on external energy sources. Maintenance, too, will shift from scheduled servicing to predictive, needs-based interventions, cutting costs and improving operational efficiency. At its core, the shift to smart buildings represents the first major step toward a sustainable future.

Finding Efficiencies Through Smart Tech

The impact of smart technologies isn’t limited to building operations. The construction sector itself is undergoing a transformation, driven by AI and GenAI. From initial design phases to on-site workforce management, AI is redefining how structures are planned, built, and maintained. By enabling architects to model buildings digitally before breaking ground, these tools minimise waste and improve sustainability.

Material production is also benefitting from AI-driven efficiencies. In construction, digital procurement is streamlining supply chains, ensuring that resources are used optimally. Meanwhile, advancements in automated quality control are improving sustainability—concrete slabs, for example, are now scanned for imperfections before installation, reducing material waste.

Beyond construction, digital twins are proving invaluable for ongoing efficiency gains. These virtual replicas allow operators to simulate different scenarios, testing energy-saving measures before making real-world changes. A prime example comes from the University of Liverpool, which used a digital twin to assess refurbishment strategies. The result? A 23% reduction in energy consumption in one campus building, translating to an annual cost saving of £25,000.

Once a building is operational, smart technologies continue to refine its performance. Sensors track key metrics—temperature, lighting, air quality—adjusting systems dynamically based on pre-set criteria. Over time, machine learning algorithms analyse this data, identifying patterns and fine-tuning performance. This cycle of continuous improvement enables operators to achieve peak energy efficiency with minimal manual intervention. As automation increases, energy waste declines, allowing building owners to focus on other areas that enhance sustainability and long-term asset value.

A blueprint for the technological age

For building operators, data is the key to unlocking efficiency. Modern AI and machine learning systems constantly analyse historical trends, growing more precise over time. The benefits are wide-ranging: predictive maintenance extends the lifecycle of elevators, escalators, and HVAC systems; occupant comfort improves as buildings learn user preferences; and workplace productivity rises due to optimised environmental conditions.

Facility owners are also experiencing a shift in how electrical systems are designed and maintained. Digital twins allow engineers to model power infrastructure in a virtual environment before physical implementation, reducing design flaws and inefficiencies. Moreover, the concept of the “live digital twin” ensures that a facility’s virtual model remains dynamically updated with real-time operational data. This continuous optimisation enables facility managers to plan future upgrades with precision—whether integrating renewable energy sources, implementing EV charging stations, or scaling up power capacity to meet demand.

There isn’t a one-size-fits-all solution for smart buildings. However, the key lies in connectivity: the more systems that are brought online through IoT devices, the greater the potential for efficiency gains. By iterating gradually—scaling from basic monitoring to fully autonomous building management—operators can future-proof their assets without significant upfront costs.

The path to net zero

In the UK, some building operators are already demonstrating the potential of smart technologies. Take Sidara, the multinational design, engineering, and construction firm. At its 150 Holborn headquarters, over 650 IoT devices gather and process data from more than 60,000 data points. Through smart building controls, these systems monitor environmental conditions, occupancy patterns, and energy consumption—enabling precise adjustments that drive efficiency.

The results speak for themselves. Meeting rooms remained in a resting state—automatically lowering HVAC, lighting, and plug loads—for 76% of business hours, thanks to occupancy-based controls. Over a four-week period, these measures reduced energy use and carbon emissions by 22% on low-occupancy days. Crucially, these efficiencies were achieved without compromising indoor air quality. CO₂ levels, humidity, and volatile organic compounds (VOCs) all remained within optimal ranges, demonstrating that sustainability and occupant well-being can go hand in hand.

The financial returns are equally compelling. Sidara estimates a two-year payback period for its smart building investments, with additional savings expected as HVAC components are further optimised.

And they’re not alone. According to Deloitte’s 2025 commercial real estate outlook, AI is poised to play an even greater role in shaping the future of both commercial properties and data centres. As the race to net zero accelerates, smart buildings will be essential in reducing the built environment’s carbon footprint—ensuring a more sustainable and resilient future for generations to come.

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

The Renewable Energy Institute’s Brand New Consultant Expert Certificate

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The courses within this certificate provide a comprehensive introduction to AI, digitalisation and data fundamentals, with a focus on applications in the renewable energy sector. Participants will explore the global energy transition, key AI methodologies, including neural networks and deep learning, and their use in solving industry challenges such as load forecasting, predictive maintenance and network optimisation.

This pathway integrates case studies based on the latest research and examines the impact of AI and data centres on energy consumption. Additionally, this pathway covers renewable energy project management, policies, finance and risk.
Enrol today. Visit our website at www.renewableinstitute.org/training/artificial-intelligence-consultant-expert-certificate for more information or contact us by phone on +44 131 446 9479 or email at training@renewableinstitute.org to talk to one of our friendly advisors.

This article appeared in the May 2025 issue of Energy Manager magazine. Subscribe here.

Solarcrown Commercial Delivers Over 170kWp Solar PV Installation at Locomotion Museum

Solarcrown Commercial (SCC) has completed a major solar PV project at Locomotion Museum, part of the Science Museum Group, demonstrating how renewable energy can power even the most historically significant buildings.

The project included the design and installation of two systems; 112.36 kWp on the museum’s main building and 59.89 kWp on its New Hall, totalling over 170 kWp of clean energy generation.

The systems are expected to generate more than 150,000 kWh of electricity annually, cutting carbon emissions by over 20 tonnes per year. With projected payback periods of 4-5 years, the installation offers immediate cost savings while advancing Locomotion’s sustainability goals.

The work, delivered in conjunction with CBRE, included a full decommissioning of a legacy system, site surveys, DNO coordination, structural assessments, planning approvals, and commissioning. The systems were designed to meet strict planning conditions, ensuring minimal visual impact and full grid compliance.

“This project is a great example of how clean energy can be integrated into public and heritage sites without compromise,” said Kenny Currie, Managing Director for Solarcrown Commercial. “We’re proud to support Locomotion’s net zero ambitions while delivering long-term energy and cost savings.”.

About Solarcrown Commercial

Founded in 2012 and based in Rainford, St Helens, Solarcrown Commercial specialises in Solar PV and LED lighting solutions, offering consultancy, design, and installation services to deliver cost-effective, sustainable energy systems. With expertise in solar PV, they provide tailored solutions that reduce operational costs and support energy independence, while their LED lighting designs enhance functionality and minimise energy consumption for commercial and industrial spaces.

Hitachi Energy and SP Energy Networks join forces to deliver sustainable critical infrastructure for clean energy future

Hitachi-MOU-1 — Andre Gargi, Global Head of Marketing & Sales for the Business Unit High Voltage Products in Hitachi Energy with Pearse Murray, Transmission Director for SP Energy Networks.

Hitachi Energy and SP Energy Networks (SPEN) have signed a Memorandum of Understanding (MoU) which formalises both companies’ commitment to Scotland’s energy transition by deploying sustainable critical energy infrastructure.

The agreement will see Hitachi Energy provide switchgear from its groundbreaking EconiQ^® portfolio. Unlike traditional equipment, the EconiQ equipment does not use sulfur hexafluoride (SF₆) – the world’s most potent greenhouse gas, which is widely used in critical power grid infrastructure and is 24,300 times more climate-hostile than CO₂. This ensures Hitachi Energy’s SF₆-free technology will support SPEN in its critical role to help Scotland achieve net zero by 2045.

The first installations of the EconiQ 420 kV GIS will take place in two new planned substations on SPEN’s network, critical to the UK’s energy transition. These will effectively remove the equivalent of the CO₂ emissions produced from around 27,600 passenger vehicles from the road in a year.

The agreement builds on a long-term collaboration between the two companies to facilitate the connection of renewable energy for use by electricity consumers across the country.

The arrangement will enable SPEN to deliver projects central to the UK energy transition and to meet regulatory commitments made with UK energy regulator Ofgem.

Andre Gargi, Global Head of Marketing & Sales for the Business Unit High Voltage Products in Hitachi Energy is confident: “This agreement will help power Scotland’s future and contribute to its net-zero ambitions, and we could not be happier to be the ones enabling it to meet its targets with our SF₆-free EconiQ switchgear. We are at a critical point in the energy transition journey and decarbonising the transmission network is a priority: this means modernising the country’s energy infrastructure to stimulate economic growth, reducing carbon emissions, and contributing to a cleaner, more resilient energy system for future generations.” Pearse Murray, Transmission Director for SP Energy Networks, said: “Decarbonising the grid as we build the transmission network needed for the energy system of the future is a vital step on the journey to net zero and it’s great to have Hitachi on board as a trusted partner. This agreement marks a milestone moment for SP Energy Networks as we continue to invest to upgrade our network while reducing our greenhouse gas emissions. I have no doubt this partnership will help us deliver a cleaner, greener and better future, quicker.”