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Strategies for Manufacturers to Reduce Costs and Reach Net Zero

Manufacturing businesses are among the most energy-intensive sectors, with power needed for machinery, heating, lighting, and other essential processes. As a result, energy bills can represent a significant portion of operating costs, while carbon emissions remain high. For manufacturers determined to stay competitive, reduce expenses, and meet growing sustainability expectations, renewable energy solutions are no longer optional — they’re essential. At Renewable Energy Solutions (RES), we help manufacturers navigate this journey with strategies that combine efficiency, innovation, and long-term savings.

Developing a Robust Energy Strategy

Before any investment is made, manufacturers need a clear understanding of their current energy usage and carbon footprint. Conducting an energy audit is the first step toward identifying inefficiencies and opportunities for improvement. By analysing patterns of energy demand and modelling the potential return on investment from different renewable technologies, manufacturers can create a roadmap tailored to their operations. RES works closely with clients to build strategic energy plans that highlight immediate wins, medium-term priorities, and long-term transformational goals.

Harnessing Solar Energy and Onsite Generation

One of the most effective ways manufacturers can reduce reliance on the grid is by generating their own energy. Solar photovoltaic (PV) systems, in particular, are ideal for factories with large rooftops or surrounding land. Installing solar panels can help lower electricity costs, protect against price volatility, and even generate income from selling excess power back to the grid. At RES, we design and manage every aspect of solar energy projects, from planning and installation to ongoing maintenance, ensuring our clients maximise their investment and sustainability impact.

Optimising Heat and Power with CHP Systems

Many manufacturing operations require both electricity and heat, which is why combined heat and power (CHP) systems can be such a powerful solution. By generating electricity and capturing usable heat from a single fuel source, CHP systems significantly improve overall efficiency. When paired with renewable or low-carbon fuels, they can also make a substantial contribution to carbon reduction goals. RES supports manufacturers by assessing feasibility, sizing systems appropriately, and managing integration to ensure CHP delivers its full potential.

Upgrading to Energy-Efficient Lighting

Lighting is often overlooked as a source of savings, yet it can account for a considerable portion of a manufacturer’s energy consumption. Upgrading to modern LED lighting with intelligent controls can dramatically reduce energy use while improving workplace conditions. The longer lifespan of LEDs also lowers maintenance costs and disruption. At RES, we help manufacturers plan and implement lighting upgrades that align with their wider sustainability and operational goals.

Supporting Electric Vehicle Transitions

As more manufacturers transition their fleets to electric vehicles (EVs), the need for onsite charging infrastructure grows. Installing EV charging points not only enables this transition but also signals a strong commitment to sustainability to customers, employees, and stakeholders. By integrating EV charging systems with onsite renewable energy and storage solutions, manufacturers can reduce running costs and future-proof their operations. RES offers end-to-end support for EV charging projects, from design to installation.

Leveraging Energy Monitoring and Reporting

Sustainable change requires ongoing measurement. Without accurate data, it’s impossible to identify inefficiencies or track improvements over time. Energy monitoring and reporting systems give manufacturers real-time insight into consumption, highlight areas for intervention, and support regulatory compliance. By embedding these systems, RES empowers manufacturers to make informed decisions, optimise processes, and demonstrate measurable progress to stakeholders.

Busy manufacturing plant uk with two workers walking through centre

Achieving Net-Zero and Staying Compliant

With increasing pressure from regulators and customers to cut emissions, manufacturers must plan their net-zero pathways carefully. This begins with setting a clear target date, measuring current emissions across all relevant scopes, and identifying reduction levers such as energy efficiency, onsite renewables, and cleaner fuels. RES helps clients navigate complex policy frameworks, tap into government incentives, and manage compliance obligations, turning sustainability commitments into concrete action plans.

Optimising Energy Procurement

Even with strong onsite generation, most manufacturers will still rely on external energy supplies. Optimising procurement strategies — from negotiating competitive tariffs to using time-of-use contracts — can unlock substantial savings. RES has extensive experience securing favourable energy contracts for manufacturers, helping to reduce costs and protect against market volatility.

Navigating Exemptions and Government Schemes: ESOS, SECR, and the EII Scheme

For manufacturers, compliance with energy regulations and accessing available exemptions can make a significant financial difference.

  • ESOS (Energy Savings Opportunity Scheme)

    Requires large UK companies to conduct energy audits every four years. By identifying opportunities to reduce energy use, ESOS helps manufacturers develop a clear action plan for savings. RES can help you prepare for ESOS audits, identify qualifying measures, and implement recommendations.

  • SECR (Streamlined Energy and Carbon Reporting)

    Mandates that qualifying companies report their energy use, carbon emissions, and efficiency measures annually. Accurate monitoring and reporting not only ensure compliance but also demonstrate your commitment to sustainability. RES supports manufacturers in gathering the right data and preparing SECR-compliant reports.

  • Energy Intensive Industries (EII) Scheme

    Offers partial exemptions from certain government levies for qualifying businesses in energy-intensive sectors. By assessing your eligibility and ensuring you meet the reporting requirements, RES can help reduce your operational costs significantly through these exemptions.

By combining renewable energy technologies with effective use of schemes like ESOS, SECR, and EII, manufacturers can unlock significant savings while staying ahead of regulatory requirements.

Bringing It All Together

While each of these solutions offers value on its own, the greatest benefits come from an integrated approach. Combining onsite generation with efficiency measures, monitoring systems, and a clear net-zero roadmap ensures manufacturers achieve the maximum return on investment while building resilience for the future.

Why Partner with Renewable Energy Solutions

At Renewable Energy Solutions, we bring expertise across all these technologies, delivering tailored services that reflect the unique needs of manufacturing environments. Our transparent approach, focus on measurable outcomes, and ability to manage complex regulatory and procurement landscapes make us a trusted partner for manufacturers nationwide.

Taking the First Step

Transitioning to renewable energy doesn’t have to be overwhelming. Manufacturers can begin with a consultation or audit to understand their current energy performance, identify quick wins such as lighting upgrades or monitoring systems, and then develop a multi-year plan for renewable generation and procurement. With the right support, every step moves you closer to reduced costs, lower emissions, and a stronger competitive edge.

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