Why Energy Prices Rise as Temperatures Fall

Article posted

27th Nov 2023

Read time

4-7 min read


Mollie Pinnington

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As we start to get into winter a lot of businesses start to see their energy bills go up. With colder and darker days, a lot more energy is needed to ensure your staff can work comfortably. These unstable winter prices can affect businesses bottom line if they get too out of control. Businesses need to start thinking proactively when it comes to energy bills.

Energy efficient infrastructure such as solar panels can massively help your business when it comes to reducing energy and your businesses reliance on electricity from the grid.   This could dramatically improve the savings that you put into your business’ bottom line.

Why are energy prices so volatile?

Energy volatility has a huge impact on how much businesses pay for electricity. Over the past few years fluctuations in the energy market have taken a roll on many consumers. Many households have been unable to cope, and many businesses have had to shut down due to energy prices being too high.

There are many reasons why prices are so volatile from social, political, and environmental reasons. A lot of factors all putting pressure on the energy market has left it extremely unstable.

Energy prices were just starting to recover this year after they skyrocketed due to the war between Russia and Ukraine. Due to the sanctions placed on Russia by western countries, the country stopped supplying natural gas to Europe. Before this Russia was one of the worlds largest gas suppliers, therefore this had major impact on the wholesale energy market, which pushed consumer prices sky-high.

Just as the global market was starting to come down from last year’s disruption, War broke out in Israel, which is one of the biggest oil exporters. This has led to turmoil within the wholesale market again which could start to put pressures on suppliers, leaving them no choice but offer expensive renewal prices once again.


Are prices going to get more expensive?

Although energy prices had started to go down this year it is looking like they could be pushed back up this winter and going into 2024. This is mainly due to the conflict in the middle east as well the winter demand pushing prices up.

How solar can combat high electricity prices for your business.

Solar can massively help combat high energy prices for business. With solar you are paying one steady price for your electricity compared to having to pay sky high electricity prices that seem to go up each month.

By applying for our free solar contract, you will also not have to pay for your PV system at all just the electricity you use which will be no more than 20p/kWh.

Compared to what prices rose to last year in the midst of the energy crisis (70p/kWh) This is a massive reduction.

Other benefits of free solar include:

  • A free rooftop solar PV system
  • Solar electricity at 20p/kWh
  • No maintenance or operational costs
  • Freedom to buy the system at any point
  • Green credentials


 What is free solar?

The term “free solar” might ring alarm bells to many people or seem too good to be true but it's not. We offer a solar power purchase agreement (PPA) which allows you to get solar panels installed on your business for free.  You then buy the energy your solar panels make to power your business.

With this agreement the price will you pay for electricity from the solar will be a lot lower than it would be if you were paying for electricity from the grid. At the end of the contract, you will then be gifted the solar panel system, along with the option to buy it earlier.

This agreement is not only a good way for your business to save money but also allows your business to become more sustainable and manage your carbon emissions.

If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.