The global energy transition just crossed a major milestone. According to the International Energy Agency, low-carbon sources are now set to overtake coal as the world’s largest source of electricity. But while renewable generation is rising rapidly, something else is happening in the background — energy bills are still increasing for many businesses.
With global capacity projected to double by 2030, 2026 is proving to be the year that the “renewables revolution” moved from a future goal to an everyday reality.
The UK Landscape: A Record Breaking Winter
In the UK, the “Clean Power 2030” strategy is delivering tangible results. Low carbon sources, including renewables and nuclear, now consistently account for over 65% of the UK electricity mix, as reported by AAB Group and Friends of the Earth UK.
Key UK Highlights
- Wind Energy Dominance: Wind has once again become one of Britain’s leading power sources, frequently delivering over 37% of the electricity mix during winter peaks.
- Solar and Onshore Wind: Planning reforms have triggered a resurgence in onshore wind approvals, while bifacial solar panels are now standard on new utility-scale sites.
- Offshore Momentum: Dogger Bank continues to ramp up capacity and is now providing a significant share of the UK’s renewable baseload.
Global Trends: Efficiency Records and Strategic Partnerships
Global growth is being supercharged by two major developments: one in the lab and one in international diplomacy.
1. The Perovskite Silicon Revolution
We have finally moved beyond the laboratory. SolarTech reports that perovskite silicon tandem solar cells have shattered previous efficiency records, reaching a staggering 34.6% efficiency.
By layering perovskite on top of traditional silicon, these cells can capture a much broader spectrum of sunlight. This technology is now entering commercial pilot stages, promising to generate significantly more power from the same land area.
2. The India UK “Trustforce”
A major highlight this month is the official launch of the India UK Offshore Wind Taskforce. Described by Union Minister Pralhad Joshi as a “Trustforce,” this partnership aims to combine UK expertise in seabed leasing and port modernisation with India’s massive scale and 70 GW offshore potential.
Special Briefing: The Rising “Non-Commodity” Burden
Across the UK, a structural transformation is reshaping how organisations manage energy expenditures. While wholesale electricity prices have begun to stabilise, non electricity costs (the various levies and charges wrapped around the actual unit of energy consumed) are climbing steadily.
Understanding the Non-Commodity Burden
Non electricity costs now account for more than 60% of a typical business’s electricity bill, according to recent reports from Resolve Energy. This means that even if wholesale prices drop, the total cost of energy remains high due to:
- Network Charges: Costs for the transmission (TNUoS) and distribution (DUoS) of power. TNUoS charges are set to roughly double between the 2025/26 and 2026/27 charging years.
- Net Zero Obligations: Environmental costs tied to government sustainability policies, including the new Nuclear RAB levy for projects like Sizewell C.
- System Balancing: Fees paid to the National Energy System Operator (NESO) to maintain stability between supply and demand.
- Capacity Market: Payments to ensure security of supply, which are projected to increase significantly through 2026.
Why are these costs increasing?
The primary driver is the urgent need to modernise the UK’s energy infrastructure. To support the transition to electric vehicles (EVs), heat pumps, and intermittent renewables, the grid requires extensive upgrades. NESO’s Beyond 2030 report outlines a requirement for £58 billion in direct investment for network upgrades.
Future Proofing with On Site Solar ☀️
In this landscape, on site solar generation has evolved from a sustainability extra to a critical financial tool. By generating power at the point of use, organisations can:
- Bypass Grid Levies: Directly reduce exposure to network charges and policy costs by pulling less power from the national grid.
- Mitigate Peak Charges: Solar production typically aligns with daytime peak demand, lowering expensive “red zone” charges.
- Secure Price Certainty: Commercial systems now often achieve payback within 3 to 5 years, providing decades of virtually free electricity.
- Tax Benefits: Businesses can utilise the Annual Investment Allowance (AIA) to deduct 100% of the system’s cost from taxable profits in year one.
The Bottom Line 🎯
Rising non-commodity costs are a long-term reality of the energy transition. While these charges are largely unavoidable for grid-dependent users, proactive organisations can regain control. By investing in on-site generation, businesses can insulate themselves from rising levies while contributing to a more resilient, low-carbon energy system. For many organisations, on-site solar is no longer just a sustainability initiative, it is increasingly a strategic decision to control long-term operating costs.
📚 References and Resources
- IEA: Renewables 2025 Analysis and Forecast
- NESO: Beyond 2030 Network Investment Report
- National Grid: Connections Reform Updates 2026
- AAB Group: The UK’s Renewable Energy Revolution
- Energy Live News: UK-India Offshore Wind Launch
- Utility Bidder: Breaking Down the 2026 Business Energy Bill
RECenergy partners with energy and renewables businesses as an outsourced delivery partner, providing specialist design support and skilled staffing, from experienced, hands-on engineers through to senior leadership and C-suite appointments.
Ray Metcalfe – Managing Director, RECenergy
07494 912447 | [email protected] | www.recenergy.co.uk