Since the start of March 2026, the price of a barrel of brent crude has risen 43.8%. Consequently, the price of energy from fossil fuels is also rising at a rapid rate. This increased cost is making operations difficult for energy intensive industries such as manufacturing.
But as efficiencies are sought is this (or can it) triggering a parallel trend for businesses to generate and control the costs of energy?
Food manufacturers in distress
According to BTG’s ‘Red Flag Alert’ tool, which has monitored the financial health of UK companies for almost two decades, there were more than 6,000 food manufacturers in significant distress in Q1 2026, with around 800 closer to administration experiencing ‘critical’ distress.
And while the Government has expanded the British Industrial Competitiveness Scheme to cut (or offset) some of these cost increases, this could just be the tip of the iceberg.
Many in the food manufacturing sector will be looking at whether restructuring advice will be needed in the near future. However, when working in restructuring the first instinct will be towards finding ways to turnaround or survive in the first instance.
As such, we are increasingly seeing a trend of manufacturers tackling energy costs head on to head off distress.
A renewables boom is triggered
Even before the start of the crisis in the Middle East and the subsequent rise in energy prices, many businesses were looking at ways to gain greater control over energy costs.
Since 2019, there were just 71 planning permission applications granted in 2019 for solar PV projects, this compares to 794 in 2025.
Although this is a stark change, there is an even larger difference when considering the collective size of these projects.
In 2025, 7.78GW of solar projects were approved, a rise on the high of 5.72GW in the previous year. Both of these figures dwarf the 0.377GW approved in 2019.
Importantly, approvals for battery installation have also accelerated to support the storage of energy created.
In 2019, 35 battery projects received approval for planning permission, whereas in 2025, 475 were approved - the highest in five years.
With the ability to store in excess of 35 GW (the highest level recorded), the move towards bigger creation, storage and control of energy from renewable sources is clear.
At first glance the data on solar PV and battery shows that more businesses want to get energy from renewables, but there is a dual meaning.
The data suggests that planning barriers for businesses and landlords are becoming more favourable towards renewables, and that with the cost of solar panels falling by around 25-35% since 2024, in contrast to wholesale energy prices, lenders of many varieties are also more interested.
The conclusion appears to be that energy from renewables is no longer being viewed by parties involved as just a sustainability or ESG policy move, it is now a cost control and financial planning move.
The cost of renewables is appealing to lenders
As a result of this climate many lenders – both high-street and alternative – have become more accustomed to financing solar projects. And being as inflation, and price of money, is likely to be heavily influenced by energy in the coming months, a number are still taking a view on energy generating projects. This is especially true when exploring asset-backed finance against large machinery or even buildings.
Add to this a payback period of around five to eight years, and the momentum of solar or other renewable installation appears to be continuing to gather pace.
An estate review can quickly uncover the opportunities for solar PV installations, particularly rooftop and car park solar installations for large food manufacturing sites. This includes suitable areas for battery installations to accompany them.
Specialist real estate advisors and surveyors in the sector often have the capability in the team to design, cost and project manage installations, including analysis of current energy spend, potential savings and payback periods for the site, to provide the best solution.
Often these costs can be overcome or mitigated by building costs into the overall finance package, a model that many experienced sector lenders will help do.
Is the cost the best fuel for business renewables installation?
The outlook across not just the food sector, but all sectors, is now heavily driven by the need to reduce overheads as energy prices continue to rise.
Businesses are under increasing pressure because energy has become one of the most volatile operational costs. At the end of the day, industry must remain profitable, jobs are vital to local communities, and controlling overheads is always high on the agenda.
More than ever, renewables are providing stability in an environment where energy costs are unpredictable. Prices fluctuate constantly, making long term planning difficult for businesses. Renewable technologies and on-site generation are increasingly attractive because they offer greater certainty and resilience against market volatility.
The question now is whether the trend of applications, approvals, finance and removal of uncertainty can continue to give more control over the bottom line for leaders in the industry.
About the authors
Dave Mathieson is the managing director in funding and insurance at financial and real estate advisory group, BTG.
Nazar Soofi is the director and head of sustainability at chartered surveyors, property consultants and auctioneers, BTG Eddisons.