Rising temperatures set to increase cooling costs for UK businesses

As temperatures across the UK continue to rise and forecasters warn of further heatwaves this summer, renewable energy specialist SunGift Solar is urging businesses to prepare for a future in which cooling becomes an increasingly significant operational cost.

The warning comes as temperatures in the UK have topped 30°C, with new records highs expected, and the prospect of a long, hot summer ahead.

The Met Office has also indicated that the likelihood of warmer than average conditions remains elevated following England and Wales' warmest spring on record, and the record breaking weather in June.

While heating has traditionally dominated business energy strategies, cooling is rapidly emerging as a major challenge for commercial and industrial organisations seeking to maintain productivity, protect equipment and ensure comfortable working environments.

According to the UK Health Security Agency, there were an estimated 1504 heat associated deaths during five heat episodes in England during summer 2025. This follows 1311 heat associated deaths in 2024 and a record 2985 heat associated deaths during the extreme heat events of 2022.

As temperatures steadily increase, demand for cooling is expected to rise significantly across offices, warehouses, manufacturing facilities and industrial sites.

For commercial offices, cooling loads can account for between 20% and 40% of summer electricity consumption. Within manufacturing environments, cooling requirements can be substantially higher, particularly where temperature sensitive processes, equipment and products are involved.

Sectors including food production, cold storage, pharmaceuticals, advanced manufacturing, electronics, logistics and data processing increasingly rely on cooling systems to maintain operational efficiency and product quality.

In many cases, cooling systems operate continuously during periods of hot weather, creating substantial additional electricity demand at precisely the point when businesses are already facing elevated energy costs.

Unlike many other energy demands, cooling requirements align closely with periods of peak solar generation.

The hotter and sunnier the weather becomes, the greater the output from solar PV systems, which can be used to offset the higher cost of cooling. 

For energy intensive organisations, this can help reduce exposure to volatile electricity prices, lowering operating costs and improving resilience during periods of peak grid demand.

The growing need for cooling in commercial and public sector settings has been highlighted by the Climate Change Committee.

Emma Pinchbeck, chief executive of the Climate Change Committee, has repeatedly highlighted the need for the UK to adapt to a warmer climate, including air conditioning in critical settings such as hospitals, schools and care settings so that they can remain safe and operational during periods of extreme heat. 

The committee has specifically warned that overheating represents one of the most significant climate risks facing the UK, requiring greater investment in adaptation measures across both the public and private sectors.

Gabriel Wondrausch, director at SunGift Solar, said: ‘The challenge facing businesses is that cooling demand typically increases during peak energy cost periods. This is exactly why solar makes sense.

‘On hot, sunny days, when air conditioning and cooling systems are working hardest, solar PV systems are generating close to peak output. That makes power from the sun one of the most effective ways of offsetting the cost of cooling while reducing pressure on the grid.

‘For manufacturers, logistics operators and office based businesses, cooling is increasingly becoming a strategic energy issue rather than simply a facilities management concern. Rising temperatures can affect workforce comfort, productivity, equipment performance and operating costs.

‘As the UK adapts to a changing climate, we expect cooling to become a much larger component of commercial electricity demand. Solar provides a practical solution that enables organisations to increase resilience while controlling costs.’

For organisations investing in solar generation, the benefits extend beyond lower electricity bills.

Solar PV combined with battery storage can reduce peak electricity imports, improve energy security, support critical cooling infrastructure and provide greater resilience during periods of high demand.

For manufacturers in particular, the ability to generate electricity on-site during periods of peak cooling demand can help stabilise energy costs while protecting production processes and operational performance.

Gabriel Wondrausch added, ‘Whether it is an office, distribution centre, manufacturing facility or industrial plant, the combination of solar power and battery storage provides a practical pathway to lower operating costs, improved energy resilience and greater protection from future energy market volatility.’