New government’s energy pledges: five things your business should know

This is a big headline for businesses and consumers. The new UK Government is pledging to increase investment in renewable energy and deliver clean power by 2030. This would reduce our reliance on energy from overseas, which can lead to higher energy bills for us here in the UK.

Lower energy bills mean lower running costs for all businesses. But this benefit will be felt most by energy-intensive sectors that have been hit harder by increased energy costs over the last few years.

And the way the UK Government wants to achieve it also represents a business opportunity, as explored in the following section.

The UK Government has raised its ambition on installing renewable energy technology to support the delivery of clean power by 2030. This is five years ahead of the previous government’s target: an ambitious target to achieve. It’s ambition we welcome; it also shows the new UK Government understands the speed and scale with which we need to act.

We’re encouraged by the renewed focus on increasing our renewable energy capacity and ending our reliance on fossil fuels. This is vital if the new UK Government wants to truly strengthen the UK’s energy security and cut energy bills in the long-term. It also represents an opportunity for installers, manufacturers, and other businesses in the renewables supply chain to help meet this demand.

Energy efficiency is the fastest and most effective way to permanently reduce energy bills. By making homes more energy efficient through better insulation, people can reduce how much energy they use and therefore the cost of heating a home.

The UK Government’s Warm Homes Plan aims to make five million homes more efficient. This is a big opportunity for businesses that can retrofit properties and install energy efficiency measures.

Financial support for solar panels, battery storage and low carbon heating will help people power their homes in a cleaner, cheaper way. Installers could benefit from this increased uptake, as well as the associated supply chains.

We’ve long called for a national plan to improve the UK’s inefficient housing stock, so we’re encouraged to see this level of ambition and investment. This will provide certainty to households and investors alike.

The UK Government is committed to putting job creation central to its economic agenda, with its Green Prosperity Plan aiming to create 650,000 jobs. Its National Wealth Fund will also help the most energy intensive sectors (such as the steel industry) to decarbonise. The National Wealth Fund will deliver funding through the UK Infrastructure Bank.

The fund looks to support the transition to a greener economy. The UK Government hopes that for every pound of public money invested, it will attract three pounds of private investment.

The promise of new job opportunities is great news for workers, but the new UK Government is also providing incentives to businesses. From 2026, it has pledged to allocate up to £500 million a year to reward clean energy developers who:

• Offer good jobs and terms and conditions for its workers.
• Build manufacturing supply chains in industrial areas, coastal areas and energy communities.

So, if your business works in the clean energy sector, the British Job Bonus could be something that supports your growth – we’ll wait to see the details.

We welcome the new UK Government’s ambitions and clear understanding of the need to act now to address the climate emergency. As more detailed plans emerge, we’ll be able to fully understand how the new UK Government will ensure the UK becomes a “clean energy superpower.” We’ll also learn how businesses like yours can support the transition to a greener economy.