Reducing energy costs in food and drink manufacturing

Food and drink manufacturers operate on tight profit margins (around 5% on average), so cutting energy waste is a direct boost to the bottom line.  

Fortunately, there are plenty of quick wins. Efficiency measures – the proverbial low-hanging fruit – can immediately trim usage and costs. For example: 

• Upgrading to LED lighting can improve lighting efficiency by up to 90%, yet only about one-fifth of UK producers have fully rolled this out.
• Installing motion sensors to switch lights off when not needed can save ~30% on lighting costs.
• Optimising processes (like fine-tuning refrigeration controls or fixing compressed air leaks) and performing regular maintenance on equipment can each yield ~10% or more energy savings.  

These steps reduce energy use per unit of product, easing cost pressures immediately. 

But once you’ve dealt with this low hanging fruit – what’s next? 

On-site energy generation offers a step-change in cost reduction. Deploying technologies like Solar PV, Combined Heat and Power (CHP) or Heat Pumps lets you produce electricity and/or usable heat right at your facility. This cuts expensive grid purchases and shields you from volatile market prices. And the benefits are clear: 

• CHP can deliver up to a 40% reduction in energy costs  with a 3–5 year payback. For instance, Centrica Business Solutions helped one of Britain’s largest bakeries install a 1 MWe CHP unit, saving ~£400,000 and 1,000 tonnes of CO₂ per year – paying for itself in around three years.
• On-site Solar generation similarly provides low-cost power, especially valuable if you have ample roof or land space and daytime operations.
• Heat pumps can replace costly fossil-fuel boilers for medium-temperature needs, while also reducing emissions. 

These investments don’t have to strain capital budgets. Flexible financing models – such as Power Purchase Agreements (PPAs) or Discount Energy Purchase (DEP) agreements - allow you to implement solutions with no upfront cost.  

We’ll design, fund, and operate an onsite energy generation installation on your site, and you simply buy the electricity that it generates, at a fixed rate p/kWh rate that’s typically lower than your current electricity price. This means immediate savings and price stability without capital expenditure.  

By combining efficiency improvements with on-site power, food and drink manufacturers can drive down cost per unit produced in any market condition, strengthening margins for years to come.