UK Inflation Rises to 3.8% – What It Means for Your Energy Bills
The Office for National Statistics (ONS) today confirmed that UK inflation rose to 3.8% in July 2025, up from 3.6% in June – the highest rate since January 2024. The increase was driven mainly by air fares and motor fuels, while housing and household services, including owner-occupiers’ housing costs made a downward contribution.
Energy Prices and Inflation
Global energy markets remain volatile, with commodity price rises feeding through into fuel and electricity bills. Government policy changes such as increases to wages and national insurance also mean service industries, including hospitality and transport, are passing higher costs on to consumers. The Bank of England has already warned that inflation could peak at 4% this autumn, making another round of higher energy bills increasingly likely.
Ofgem’s energy price cap provides some protection for households, helping to shield them from the full impact of wholesale market fluctuations. However, forecasts suggest that continued volatility could still put upward pressure on bills over the coming months, keeping energy affordability a pressing concern.
Unlike households, UK businesses are not protected by an Ofgem price cap, meaning they are far more exposed to changes in the wholesale market. Rising inflation and energy price uncertainty translate quickly into higher operating costs, with SMEs facing sustained pressure on electricity rates and energy intensive industries paying some of the highest prices in Europe. This remains a key concern for high energy users and the manufacturing and engineering sectors in particular, where energy costs represent a significant share of overall expenditure.
What This Means for Households and Businesses
Cost pressures are mounting across the economy. Food and non-alcoholic drink prices were 4.9% higher in July year-on-year, with ONS analysis showing food costs rose by around 25% between January 2022 and January 2024. For businesses, operating costs are being driven up by policy changes, including the National Living Wage, which rose to £12.21 per hour in April 2025, and an increase in the employer National Insurance rate to 15% this tax year. Even if inflation eases later in 2025, prices are unlikely to fall, they will simply rise more slowly, keeping pressure on budgets through winter.
How to Take Control of Energy Costs
With inflation remaining above target and energy markets highly sensitive to global events, businesses and households are increasingly looking for ways to take control of their energy use. For many, this means exploring renewable energy solutions such as solar PV and battery storage, which not only reduce exposure to volatile market prices but also deliver long-term cost savings and carbon reductions.
By generating and consuming their own clean electricity, organisations and homeowners alike can gain greater resilience, predictability, and security over their future energy costs. This shift towards greater energy independence is driving interest in practical solutions that deliver both financial and environmental benefits. Key opportunities include:
Generate your own energy – Solar PV reduces reliance on the grid and protects against future price rises.
Store energy to maximise savings – Battery storage increases self-consumption of solar power and minimises costly peak-time prices.
Planning with confidence – Onsite renewable energy provides long-term cost stability compared with wholesale linked tariffs.
Cut carbon while cutting costs – Lowering fossil fuel use supports net zero commitments and delivers immediate bill savings.
At SolarSense, we are already partnering with a wide range of businesses, schools, and public sector organisations to prepare for a future of rising costs and increasing energy uncertainty. Through solar PV, battery storage, and solar carports, we help our clients reduce reliance on the grid, stabilise long-term energy costs, and cut carbon emissions, building resilience for the years ahead.
Protect your business and find out how much you could save with clean energy
SolarSense is an employee-owned Certified B Corp, committed to the highest standards of quality and environmental performance, backed by ISO 9001 and ISO 14001 accreditation. We consult, design, install, monitor and maintain award-winning renewable energy projects to deliver maximum financial and carbon savings for leading brands in England and Wales.
Request your free savings assessment and get a tailored break down of your potential energy cost reduction, carbon savings, and return on investment.
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Delivering clean energy with no upfront cost and immediate savings for businesses.
At SolarSense, we understand that protecting your assets and achieving Net Zero shouldn’t mean stretching your capital budgets. That’s why we have launched a fully funded Solar as a Service solution – allowing your business to install solar PV, battery storage, and solar carports with no upfront cost and ownership responsibilities. Instead, clients pay a fixed monthly fee and can start achieving significant energy cost savings compared to grid electricity from day one.