Rising Energy Costs Are Squeezing Food Manufacturers
Food and drink manufacturers are among the UK’s most energy-dependent businesses. From refrigeration and cold storage to production lines, packaging equipment and warehousing, electricity is a core operating cost rather than a simple overhead.
At the same time, manufacturers face increasing pressure from rising labour costs, higher ingredient prices, retailer sustainability requirements and ongoing energy market volatility.
Survey research conducted by Glenfield Electrical (methodology and sample size available on request) found that businesses remain concerned about rising electricity costs, yet many still do not actively monitor their consumption or understand where the biggest savings opportunities exist. Respondents also cited a lack of clear information and concerns around upfront investment as major barriers to taking action.
The practical measures in this guide can meaningfully reduce electricity consumption for many food manufacturers. The savings ranges quoted are wide because they reflect genuine variation across different site sizes, production hours, tariff structures and starting conditions. The right starting point is understanding your own baseline -which is why energy monitoring appears first in the implementation roadmap, not last.
Why Energy Efficiency Matters Specifically for Food Manufacturers
Unlike many commercial businesses, food manufacturers often operate long production hours and rely on multiple energy-intensive systems simultaneously. These commonly include refrigeration and cold storage, packaging machinery, production line equipment, ventilation and extraction systems, warehouse operations, lighting and office and welfare facilities.
A typical food manufacturer that has not previously taken a systematic approach to energy can often reduce electricity consumption by 10–30% through a combination of operational improvements, energy-efficient technologies and onsite generation. The range is wide because the baseline varies enormously: a site that already runs LED lighting and has a reviewed tariff has less headroom than one that has done neither.
A Note on Savings Figures
Throughout this guide, annual savings figures are presented as ranges (for example, £2,000–£50,000+). These reflect genuine variation based on site size, hours of operation, existing equipment, current tariff, and local factors such as roof orientation for solar. They are not conservative estimates padded for marketing purposes, but they are also not guarantees. Any credible assessment of your specific site will produce narrower, more reliable numbers. The figures here are a starting point for deciding whether a detailed assessment is worth pursuing.
Practical Energy Saving Measures for Food Manufacturers
LED Lighting: Fast Payback Across Production and Warehousing
Lighting remains one of the quickest and lowest-risk opportunities for reducing electricity consumption. Many food manufacturing sites still operate fluorescent or metal-halide systems that consume significantly more energy than modern LED alternatives.
Typical project costs
| Site Size | Typical Cost |
| Small Factory | £3,000–£8,000 |
| Medium Facility | £8,000–£25,000 |
| Large Manufacturing Site | £25,000–£100,000+ |
Typical savings
| Measure | Typical kWh Reduction | Typical Annual Saving |
| LED Lighting Upgrade | 50–80% of lighting consumption | £2,000–£50,000+ |
The savings range is driven primarily by the proportion of electricity currently spent on lighting (which varies significantly by site type and shift patterns) and the cost per kWh on your current tariff. A two-shift food production facility upgrading from fluorescent to LED across its production floor and warehouse might realistically save £10,000–£20,000 annually, but a small single-shift operation may see substantially less.
Additional benefits: improved visibility for quality control and safety; reduced maintenance requirements due to longer LED lifespan; minimal production disruption during a well-planned installation.
Lighting Controls: Eliminate Waste During Non-Production Hours
Even efficient lighting wastes energy when areas are unoccupied. Occupancy sensors, daylight sensors and scheduled controls ensure lighting only operates when required. This is particularly effective in warehouses, cold stores, staff welfare areas, meeting rooms, loading bays and external areas.
Typical project costs
| Site Size | Typical Cost |
| Small Site | £1,000–£3,000 |
| Medium Site | £3,000–£10,000 |
| Large Facility | £10,000–£40,000+ |
Typical savings
| Measure | Typical kWh Reduction | Typical Annual Saving |
| Lighting Controls | Additional 20–40% of remaining lighting consumption | £1,000–£20,000+ |
Controls deliver the highest savings in areas with variable occupancy and long potential operating hours – warehouses and welfare areas in particular. The additional saving is calculated on top of any LED upgrade already completed; the two measures work best together.
Voltage Optimisation: Reduce Site-Wide Consumption
The UK nominal supply voltage is 230V, but many commercial sites regularly receive between 240V and 250V. Voltage optimisation regulates incoming electricity to a more efficient operating level, helping equipment consume only the energy it needs.
The case for voltage optimisation varies by site. It works best where a large proportion of load consists of equipment that is sensitive to overvoltage -including certain types of refrigeration, motors and lighting. Modern variable-speed drives and some other equipment are less affected. An honest assessment of your load profile is worthwhile before committing to a voltage optimisation installation.
Typical project costs
| Site Size | Typical Cost |
| Small Factory | £5,000–£10,000 |
| Medium Manufacturing Site | £10,000–£25,000 |
| Large Production Facility | £25,000–£75,000+ |
Typical savings
| Measure | Typical kWh Reduction | Typical Annual Saving |
| Voltage Optimisation | 3–10% overall site reduction | £2,000–£50,000+ |
The 3–10% range is wide because it depends heavily on how much of your load benefits from reduced voltage. A food manufacturer spending £150,000 annually on electricity achieving a 5% reduction would save around £7,500 per year – a reasonable return on a mid-range installation, but not guaranteed without a proper load analysis first.
Solar PV: Generate Your Own Electricity
Solar PV enables food manufacturers to generate electricity onsite and reduce reliance on the grid. Food production often coincides with peak daytime solar generation, which improves the economics of self-consumption. Many factories also benefit from large, unshaded roof areas.
Savings depend on several factors that vary significantly between sites: roof orientation (south-facing maximises generation; east/west-facing roofs produce roughly 15–20% less), shading from adjacent structures, available roof area, and crucially the proportion of generation that can be consumed onsite rather than exported. If your production runs mostly during daylight hours, self-consumption will be high. If you run primarily at night, the economics are weaker unless battery storage is added.
Typical project costs
| Site Size | Typical Cost |
| Small Factory | £15,000–£40,000 |
| Medium Site | £40,000–£150,000 |
| Large Facility | £150,000–£1m+ |
Typical savings
| Measure | Typical Grid Offset | Typical Annual Saving |
| Solar PV | 15–50% of imported electricity | £3,000–£150,000+ |
A medium-sized food manufacturer installing a 100kW south-facing solar PV system in central England could generate approximately 85,000–90,000 kWh. At current grid electricity prices, that could represent £20,000–£30,000 per year depending on consumption timing and export arrangements.
Battery Storage: Maximise Solar and Manage Peak Demand
Battery storage allows businesses to store surplus solar generation and use it during higher-demand periods, rather than exporting at relatively low rates. This is particualry useful for lower consumption manufacturers, in high electricity consumption environments the batteries will discharge too quickly to be beneficial. The economics of battery storage improved significantly with the wider adoption of time-of-use tariffs, which charge more for electricity at peak times. If your tariff does not vary by time of day, the financial case for battery storage is weaker.
Typical project costs
| Size | Typical Cost |
| Small System | £8,000–£20,000 |
| Medium System | £20,000–£80,000 |
| Large System | £80,000–£500,000+ |
Typical savings
| Measure | Typical Benefit | Typical Annual Saving |
| Battery Storage | Increased solar self-consumption and peak demand reduction | £2,000–£50,000+ |
Battery storage is most effective as a complement to an existing solar installation on a time-of-use tariff. Standalone battery installations (without solar) can still reduce peak demand charges but require a detailed tariff analysis to confirm viability.
Energy Monitoring: Understand Your Consumption First
Many businesses do not know where electricity is actually being consumed. This should be the first practical step for most sites – not the last – because monitoring data informs every subsequent investment decision and verifies whether savings from other projects have been achieved.
Typical project costs
| Site Size | Typical Cost |
| Small Site | £1,000–£5,000 |
| Medium Site | £5,000–£20,000 |
| Large Facility | £20,000–£100,000+ |
Typical savings
| Measure | Typical Reduction | Typical Annual Saving |
| Energy Monitoring | 5–15% site-wide reduction (through operational changes alone) | £1,000–£50,000+ |
The savings from monitoring itself come from identifying and eliminating waste -equipment left running outside production hours, poorly scheduled loads, or processes that could be shifted to cheaper tariff periods. A bakery, for example, may discover refrigeration or mixing equipment running overnight unnecessarily and reduce costs through scheduling changes alone, with no capital expenditure.
EV Charging: Supporting Fleet Electrification
EV charging infrastructure is included here for completeness rather than as a core energy efficiency measure. It does not reduce electricity consumption – it adds to it. The financial case rests on replacing more expensive petrol or diesel fuel costs with cheaper electricity for company vehicles.
If your business is transitioning a fleet to electric vehicles, installing workplace charging makes practical sense and supports that transition. If you have no immediate fleet electrification plans, it is a lower priority than the measures above.
Typical project costs
| Scale | Typical Cost |
| Small Installation | £1,500–£5,000 |
| Medium Installation | £5,000–£20,000 |
| Large Multi-Charger Installation | £20,000–£100,000+ |
Energy Procurement: The Contract Side of the Equation
Reducing consumption is only one side of the equation. Many manufacturers remain on contracts that are no longer competitive or that do not reflect their actual usage patterns. A procurement review should examine contract renewal dates, fixed versus flexible purchasing options, green tariff opportunities, capacity charges, peak demand management, and half-hourly consumption data. In many cases, better procurement decisions generate savings alongside physical efficiency improvements.
This is also worth doing before investing in solar or battery storage, since the value of self-generated electricity and stored energy depends significantly on your current and future tariff structure.
Funding and Finance Options
Capital is a genuine barrier for many businesses, but it is not the only route to implementing these measures. Available funding routes may include asset finance, hire purchase, leasing arrangements, green loans, Power Purchase Agreements (PPAs), and the Annual Investment Allowance (AIA). Regional grant programmes are available in some areas, though availability changes frequently – we recommend checking current schemes directly with your local Growth Hub or the UK government’s business support finder.
Many projects can be structured so that monthly savings offset a significant proportion of repayment costs, though the specifics depend on interest rates, project size and your consumption profile.
Implementation Roadmap
The ordering below reflects a logical sequence, not a rigid prescription. Every site is different. The most important first step is understanding your own consumption baseline.
Phase 1: Foundations (0–6 months)
Energy monitoring should come first. It costs relatively little and informs every subsequent decision. Alongside this: a tariff review, LED lighting upgrades (typically the fastest commercial return), and lighting controls.
Phase 2: Medium-Term Projects (6–18 months)
Voltage optimisation, where a load analysis confirms it is appropriate. EV charging infrastructure, if fleet electrification is planned. Site-wide monitoring improvements to increase granularity.
Phase 3: Strategic Investment (12–36 months)
Solar PV, where roof characteristics and consumption patterns support a strong business case. Battery storage, particularly where a time-of-use tariff is in place or planned. Wider electrification projects.
Benefits Beyond Lower Energy Bills
Food manufacturers implementing energy efficiency measures often benefit from improved operating margins, greater cost certainty, stronger ESG reporting, reduced exposure to future energy price rises and improved competitiveness when tendering for contracts. As supply chains place greater emphasis on sustainability performance, energy efficiency is becoming both a cost-saving initiative and a commercial advantage.
Next Steps
If you would like to understand where the biggest opportunities exist within your facility, Glenfield Electrical offers a free site assessment covering electricity consumption, estimated savings opportunities and available funding options.
We have an obvious interest in the outcome of that conversation. What we would ask is that you treat the assessment as useful information to take away and verify independently, and that you hold us to account if any estimates we provide prove difficult to justify on closer examination.
To arrange an assessment, contact us today.