In this blog, we look at the benefits and barriers to more sustainable business, and where and how investment in energy management assets can meet decarbonisation goals while offering the ROI necessary for business resilience over the coming year.
Net zero: where are we now?
Supply chain resilience; cyber security threats; adopting AI at a strategic level, and digital tools for real-time customer insight: these are all investment priorities for UK manufacturers for 2026. But, while government policy and economic realities seem to make a 2050 net zero deadline uncertain, Make UK’s latest report on green technologies, published in October, finds that British business is very much committed to investing in sustainability – to reduce costs, improve efficiency, and maintain global competitiveness[1].
Eight out of ten UK manufacturers are planning to focus on green growth in their business plans across the next five years[2]. And, looking to the next 12 months, over a third of British businesses consider working towards net zero to be a priority[3]. But this 12-month net zero priority setting breaks down to 79% of large organisations as compared to 35% of SMEs, highlighting a stark divide in capacity to achieve sustainability ambitions across differing business sizes. Later in this blog, we look at the cost savings and emission reductions that can be achieved through energy management asset upgrade or purchase, to help bridge the divide between large- and smaller-scale business net zero ambitions.
To achieve carbon reductions, the majority of companies are already adopting energy efficiency and waste reduction, with 59% and 55% of UK organisations already implementing these to lower operational emissions, respectively[4]. But sustainability initiatives often require additional investment, and commercial benefits can be hard to forecast. Any company considering investment in sustainability needs to demonstrate the business benefits of prioritising net zero.
Benefits and business imperative for net zero: what do companies say?
In the 2025 Net Zero Business Census, businesses identified contributing to tackling climate change as the top benefit, at 38%. Direct cost savings (31%), and efficiency gains (26%) both demonstrate the need for a clear financial case for investment. At a strategic level, the reputational advantage of net zero (29%) and the impact on attracting and retaining customers (27%) highlight the importance of a commitment to net zero for long-term competitiveness and differentiation in the marketplace.
There’s a divide between large organisations and SMEs in their capacity to prioritise net zero in business planning. But SMEs recognise and acknowledge the benefits of engaging with the net zero agenda, with 88% of medium-sized businesses identifying at least one benefit to their company[5]. Reputational advantage was cited by 59% of respondents within medium-sized companies. As with companies of all sizes, the potential for direct cost savings is high on the agenda – with 31% of SMEs perceiving this to be a benefit of a net zero strategy. Where feasible, SMEs have an appetite to decarbonise, but there are barriers to strategic adoption and operational implementation.
With reputation and the imperative to retain and attract customers as key drivers for implementing a net zero strategy – and the significant benefits from demonstrating this commitment – companies of all sizes have indicated the impact of customer demand for carbon data reporting. From the Net Zero Census, over half of large businesses report tender applications and customer requests for carbon data, rising to over 60% for companies involved in export[6]. These demands lead to an increasing need for businesses to engage fully with the net-zero agenda. And this, again, impacts businesses large and small. SMEs asked for carbon data by customers of as part of a tendering or bidding process in the last year are four times more likely to consider net zero a high priority over the next 12 months[7].
Where are the net zero roadblocks?
While the low-hanging fruits of energy efficiency and some aspects of waste reduction have already seen take up across UK manufacturing, there are significant and persistent barriers identified by businesses of all sizes, namely uncertainty over regulations, prohibitive costs, and the lack of finance to support inclusion in immediate business planning.
The Net Zero Business Census includes key recommendations to government to address these issues. Regulatory clarity is needed, including a commitment to a long-term net zero strategy. And adoption of the global ISO net zero standard, due in 2026, should be an opportunity to signal UK-wide commitment and facilitate businesses’ ability to navigate the net zero landscape. Access to grants and funding, such as “Help to Green” vouchers are needed, particularly to help support SMEs, while 38% of businesses have specified tax incentives – which would both incentivise companies’ own net zero strategies and demonstrate governmental commitment to tackling climate change.
The Industrial Strategy is, and the forthcoming British Industrial Competitiveness Scheme should be, alleviating some of the concerns around government commitment and lack of finance to support net zero ambitions. Make UK and RSM UK’s latest Investment Monitor indicates a positive environment and appetite for growth[8]. Crucially, 37% of companies plan to increase investment in direct response to the Industrial Strategy, with decarbonisation, AI and digital technologies as the main focus. But Fhaheen Khan, Senior Economist at Make UK cautions,
“The forthcoming Budget must not only safeguard current incentives but refine them with a set of carefully targeted measures to focus on booting the take up of accelerating technologies and innovation.”
Identifying the why – and where – of energy management improvement
There are competitive advantages for companies who can demonstrate a commitment to net zero – the reputational benefits, and the ability to meet the demand from customers for carbon data reporting that helps them address their own Scope 3 emissions. And the burden of compliance needs addressing by British companies – the UK has a legally-binding 2050 deadline for net zero, with many sectors having more immediate targets for their members. The cost of inaction may well be higher in the long-term than the cost of investment now.
While companies are already engaged in energy efficiency measures, investing in or upgrading existing energy management assets can help reduce energy costs to justify capex spending through a defined payback period. And, given the volatility of the energy market and the impact of the recent energy crisis on UK business, selecting the appropriate assets for your business can help you become energy resilient rather than energy vulnerable.
Technologies to support net zero strategies for 2026
Wherever you are on your net zero journey – whether you are one of the 79% of large organisations who see net zero to be a priority for 2026, or one of the lower percentage of SMEs who are prioritising decarbonisation strategies over the next twelve months – there are proven energy management technologies that can deliver the efficiencies and cost savings necessary to justify investment.
Voltage Optimisation (VO): While the National Grid supplies power at an average of 240V, most equipment in the UK operates at 230V. As British industry becomes increasingly automated, this will generally lead to higher energy consumption. Stabilising your incoming power supply through VO can help improve energy efficiency, lowering emissions while reducing energy spend.
For Nutricia, a subsidiary of Danone, Powerstar engineers recorded a maximum site voltage of 243V, as well as fluctuations in the site voltage profile. Installation of our VO-MAX solution reduced energy consumption by around 8%, lowering emission by 110 tonnes, saving £25,000 of annual energy spend.
Depending on a site’s current energy profile, businesses will generally see a return on investment in VO between 12 and 30 months from installation, making VO an ideal technology for energy-intensive industries.
Modern Amorphous Core Transformers: While many businesses already incorporate transformers into their energy management infrastructure, there are compelling arguments for upgrading ageing, outdated transformers to a modern alternative. Compared to a traditional CRGO model, an amorphous core transformer can lower core losses during transmission by up to 70%. With greater than 99% efficiency, low-loss transformers minimise CO2 levels, helping to meet net zero targets.
When Quorn Foods wanted to improve production efficiency, in line with their Supply Chain Sustainability Strategy, Powerstar’s recommendation was to replace existing distribution transformers with two HV MAX systems with integrated VO. Since installation, these new assets have reduced Quorn’s energy consumption by approximately 10.2%, lowering emission by 365 tonnes and leading to over £70,000 in annual cost savings.
Battery Energy Storage (BESS): In a blog earlier this year, we looked at the need to balance sustainability with the need for power resilience, at how grid supply issues can hamper business growth, and how BESS can help overcome these. For businesses investing in a net zero strategy, a BESS can be a valuable asset. Where investment has been made in on-site renewables, to reduce reliance on grid supply or as part of a decarbonisation strategy, a BESS can help maximise the capability of these assets. Since renewable energy generation is determined by weather conditions which may not coincide with the optimal time for usage, without a means to store this energy, if it is not used as generated then it is wasted. A BESS stores the energy generated on-site ad can switch between this clean energy and grid supply depending on business demands and when either option is most cost-effective and sustainable.
For businesses switching to EV fleets, this can create charging problems, especially where fast-charging may push you over your Agreed Supply Capacity as set by your Distribution Network Operator. Using the energy stored in the BESS acts as buffer between charging points and the Grid where the chargers are connected to the BESS.
Where Uninterruptible Power Supply (UPS) is a business necessity, replacing outdated UPS with a modern BESS that incorporates UPS can help ensure power resilience, responding in under 10 milliseconds and providing up to 95% lower losses that the traditional alternative. This can equate to cost-savings, greater energy efficiency, and better site sustainability.
For one large telecoms provider, BESS with UPS was recommended to help reduce energy consumption and ensure stable business operations when they switched to an electrified fleet. The new system allows for rapid-charging of the fleet, with optimised voltage output, and supply resilience through the UPS. For another Powerstar client, BESS with UPS – which was a critical demand – has reduced their carbon footprint by 190 tonnes of CO2e, generating £225k in annual energy cost savings.
De-risking the energy transition: why 2026 might be the right time to invest in your net zero journey
There are major risks in ignoring energy sustainability, as electrification of the UK’s energy supply ramps up to meet the country’s clean energy goals. Grid constraints are unlikely to be solved in the immediate future, yet businesses are facing regulatory requirements around net zero, as well as the reputational costs and potential for lost business opportunities due to neglecting decarbonisation. Companies investing in their energy infrastructure can gain a competitive edge, and are less exposed.
Where proven energy management technologies exist to improve energy efficiency, these can equate to reduced emissions and the lower energy spend that makes investment in green technologies a priority for manufacturers in 2026.
At Powerstar, we’re committed to helping businesses achieve sustainability, and resilient, efficient energy management. We’re supporting customers along their net zero journey, throughout the energy transition.
[1] https://www.makeuk.org/insights/reports/manufacturing-sustainable-future-capitalising-green-technologies
[2] Ibid.
[3] https://netzerocensus.co.uk
[4] Ibid.
[5] https://www.british-business-bank.co.uk/sites/g/files/sovrnj166/files/2025-10/smes-net-zero-report-2025.pdf
[6] https://netzerocensus.co.uk
[7] https://www.british-business-bank.co.uk/sites/g/files/sovrnj166/files/2025-10/smes-net-zero-report-2025.pdf
[8] https://www.makeuk.org/insights/reports/investment-monitor-2025
