Business energy market update
September 2026
The energy landscape is constantly changing. Each month, we round up some of the biggest developments from across the business energy industry and explain what they could mean for your organisation. Here's our summary of the key news from September 2026.
Business energy prices on the rise
Business energy costs have risen by 25% since February 2026, which is the highest increase seen in almost four years, according to Cornwall Insights.1 This increase is largely caused by ongoing uncertainty in the Middle East increasing wholesale prices, combined with the summer heatwave across Europe increasing energy demand to power air conditioning and other cooling systems.
It’s also made it harder for European gas operators to stock up on gas ahead of winter. European gas storage is reported to be at historic low levels for this time of year which may mean prices remain elevated for the rest of the year, and into early 2027.2
Cornwall Insights also highlight that the support being put in place by Government is currently targeted at a small number of energy-intensive industries. Nearly 90% of business energy consumption comes from businesses that have seen no support at all on their energy costs.
UK wholesale power prices3
UK wholesale gas prices4
Why rising energy costs matter to businesses
- Rising energy costs can put additional pressure on cash flow, making it harder to manage day-to-day expenses.
- Businesses coming to the end of an energy contract may find that renewal prices are higher than they were earlier this year. But with cost uncertainty expected to continue, businesses should consider the pros and cons of both a short-term and long-term renewal.
- With experts expecting prices to remain elevated into 2027, it may be worth reviewing your energy strategy and considering the options available to help manage costs.
Solar installations continue to break British records
Britain's solar boom shows no sign of slowing down, with new government figures revealing that nearly 172,000 solar installations have been completed across the UK since the start of 2026.5 This means that as of the end of July 2026, there are now more than 2.1 million solar installations in Britain, with a total capacity of 23GW. This is 1.9GW more than the end of July 2025.
July 2026 was the third-highest month on record for solar deployment, with almost 28,000 installations completed across homes, businesses and larger infrastructure projects. More than 19,800 rooftop solar systems were installed during July 2026 alone, equivalent to one installation every two minutes. Looking back over the last 12 months, every UK nation has recorded an increase in solar deployment.
Why this matters to businesses
- More businesses are exploring solar as a way to generate some of their own electricity and reduce reliance on energy purchased from the grid.
- Our recently-announced Fixed Solar Saver plan will enable businesses to access solar with no upfront costs.
- The continual, rapid growth in solar installations highlights the increasing role that renewable energy is expected to play in Britain's future energy system. Businesses should check their eligibility and suitability of their site for solar.
Government launches new challenge to develop longer-duration energy storage
Energy storage is increasingly seen as one of the missing pieces needed to reduce Britain’s dependence on gas-fired generation and manage renewable energy more effectively. Wind and solar are currently the cheapest ways to generate electricity in Britain, but the sun doesn’t always shine and the wind doesn’t always blow. This means the country continues to rely on gas-fired generation to bolster supply.
In response, the Government launched a challenge which will offer grants to innovators who can develop projects that are capable of supplying clean electricity for 100 hours or more – enough to power homes and businesses for at least four days.6 They say this will see “some of the UK’s brightest minds coming forward to develop the next generation of energy storage tech, meaning we will be able to store clean energy when not needed by the grid, and release it when it is”.
Why this matters to businesses
- If Britain could store clean energy for longer periods, it would help protect homes and businesses from future price spikes.
- It would also help to reduce the UK’s reliance on more expensive sources of power.
New emergency power cut rules announced
New rules were announced in August which allow the National Energy System Operator (NESO) to introduce temporary power cuts at short notice if electricity supplies run dangerously low.7 The measures would only be used in emergency situations, and are designed to help stabilise Britain’s electricity system and prevent a more serious, widespread blackout.
In the most extreme circumstances, NESO could disconnect homes and businesses in designated areas for up to three hours, after giving them eight hours’ notice. After three hours, they would rotate to another area, to spread the impact across the country. Hospitals, water treatment facilities and specific national security sites would be protected. The measures would only be used as a last resort, after all other available options had been exhausted.
Why this matters to businesses
- These new rules highlight the importance of continued investment in a resilient and flexible electricity system.
- Although it’s considered extremely unlikely that these new powers would be utilised, businesses may want to review how they would manage a short-term loss of electricity.
- Having a simple business continuity plan could help protect essential operations, equipment and customer service.
Ready to review your business energy options?
Understanding what's happening in the energy market can help you make more informed decisions for your business. If you're thinking about changing business energy supplier, we're here to support you every step of the way.
Frequently asked questions about this month’s energy news
Why are business energy prices rising?
Business energy prices rose in August 2026 due to a combination of higher wholesale energy costs, ongoing uncertainty in the Middle East, increased demand for electricity across Europe, and lower-than-usual gas storage levels ahead of winter. These factors have pushed up the cost of buying energy, which is feeding through into business energy prices.
Will every business pay more immediately?
This will depend on the type of energy contract you currently have in place. Businesses approaching renewal may see their renewal price is higher than it would have been earlier in the year.
What should I do if my energy contract is ending?
Start reviewing your options as early as possible. Comparing available tariffs, understanding your expected energy usage, and considering how much price certainty you need can help you make a more informed decision. With market prices expected to remain elevated, it's worth planning ahead rather than leaving renewal until the last minute.
Can solar help a business manage electricity costs?
Solar enables you to generate your own power onsite, which reduces the amount of electricity they need to buy from the grid. While every business is different, many organisations are exploring solar as a way to increase energy independence and gain greater control over long-term energy costs.
How should a business prepare for a short power cut?
Businesses should consider having a simple continuity plan in place, so they know what they’ll do if their power supply is interrupted. This could include identifying critical equipment, understanding how key operations would be affected and ensuring employees know what to do if power is temporarily unavailable. For many businesses, preparing for a power outage doesn't need to be complicated. Even a basic plan that outlines responsibilities, emergency contacts and steps for safely restarting operations after a power interruption can help minimise disruption and protect customer service.
In this article
- Business energy prices on the rise
- Solar installations continue to break British records
- Government launches new challenge to develop longer-duration energy storage
- New emergency power cut rules announced
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The views, opinions and positions expressed within the British Gas business Blog are those of the author alone and do not represent those of British Gas. The accuracy, completeness and validity of any statements made within this blog are not guaranteed. British Gas accepts no liability for any errors, omissions or representations. The copyright in the content within the British Gas business Blog belongs to the authors of such content and any liability with regards to infringement of intellectual property rights remains with them. See the Fuel mix used to generate our electricity. Read about making a complaint about your business energy.
Additional information
Business energy bills climb 25% since February, Cornwall Insight, 20 August 2026
Energy bills forecast to hit three-year high, Cornwall Insight, 19 August 2026
ICE UK Baseload Power Futures, 01 September 2026.
ICE UK Baseload Gas Futures, 01 September 2026
First regional solar breakdown as installations hit record highs, UK Government, 27 August 2026
Great Britain faces emergency power cuts risk amid grid concerns, The Guardian, 10 August 2026
