Greenhouse or horticulture business energy suppliers, tariffs and costs

Greenhouse and horticulture businesses have unique energy needs that require careful management to ensure both efficiency and sustainability. From maintaining optimal temperatures to ensuring adequate lighting, energy consumption in these sectors can be significant. As these businesses strive to produce high-quality plants and crops, understanding the nuances of energy use becomes crucial. Navigating the complexities of energy tariffs, choosing the right type of energy, and finding ways to reduce consumption are all vital components for these businesses to maintain competitiveness and profitability.

How much does energy cost for a greenhouse or horticulture business?

There is no published price list for greenhouse and horticulture businesses. What a greenhouse or horticulture business pays is set mainly by how much it uses in a year, because suppliers price by consumption band, and then by contract length, meter type, payment method and credit history. The most recent government figures (first quarter of 2026, provisional) put the average unit price paid by UK non-domestic customers at 24.14p per kWh for electricity and 5.17p per kWh for gas, including the Climate Change Levy and excluding VAT. A year earlier the averages were 25.74p and 5.54p. The smallest sites pay the most per unit: businesses using under 20,000 kWh of electricity a year averaged 35.02p per kWh, and those using under 278,000 kWh of gas averaged 7.48p per kWh.

Source: Department for Energy Security and Net Zero, Prices of fuels purchased by non-domestic consumers in the UK (Quarterly Energy Prices tables 3.4.1 and 3.4.2), published 30 June 2026. Q1 2026 figures are provisional; next update 29 September 2026. Prices are fully delivered averages including the Climate Change Levy and all other elements except VAT, so standing charges are already spread across the units. Averages across every UK business in a band, not quotes.

Working out a monthly figure for your business

Take the annual kWh from your latest bill or annual statement, find the band above and multiply. A site using 15,000 kWh of electricity a year sits in the very small band: 15,000 × 35.02p is about £5,250 a year, or roughly £440 a month before VAT. A site using 60,000 kWh of gas a year: 60,000 × 7.48p is about £4,490 a year, or roughly £375 a month. Because the smallest band pays a much higher unit rate, a greenhouse or horticulture business that moves into the next band by growing, or that sits near a band boundary, can see its per-unit price change noticeably at renewal.

VAT and the Climate Change Levy on business energy

The prices above exclude VAT. Business energy normally carries VAT at 20% plus the Climate Change Levy (CCL). HMRC applies the 5% reduced rate, with no CCL, in three cases. First, low usage: supplies averaging no more than 33 kWh of electricity a day (1,000 kWh a month) or 145 kWh of gas a day (4,397 kWh a month) are treated as domestic use whoever the customer is. Second, fuel and power for domestic use, which HMRC defines to include homes providing care for the elderly or disabled, children’s homes, hospices and school or university residential accommodation. Third, a charity’s non-business activities. Where a site is mixed, 60% or more qualifying use means the whole supply is charged at 5%; below that the supply is split between the two rates, and the customer gives the supplier a certificate declaring the qualifying percentage. Source: HMRC VAT Notice 701/19 (sections 2.8, 3.2 to 3.5, 4.2 and 5.2, updated 5 February 2025) and gov.uk VAT rates.

Is a greenhouse or horticulture business a microbusiness?

Ofgem treats a business as a microbusiness if it has fewer than 10 employees (or their full-time equivalent) and an annual turnover or balance sheet total of no more than £2 million, or if it uses no more than 100,000 kWh of electricity or 293,000 kWh of gas a year. A business can be a microbusiness for one fuel and not the other. Independent greenhouse and horticulture businesses that meet either test are covered by Ofgem’s microbusiness rules, which give extra protections around contract terms and renewals (Ofgem: get energy for your business).

Do business energy rates vary by region?

Yes. Part of every unit rate covers the cost of the local electricity distribution network, and Great Britain has 14 licensed distribution areas each with its own charges, so identical contracts are priced differently in, for example, the north of Scotland and London. DESNZ does not publish non-domestic prices by region, so regional figures quoted elsewhere are supplier or broker estimates rather than official statistics.

Which energy supplier is best for greenhouse and horticulture businesses?

No supplier specialises in greenhouse and horticulture businesses or publishes tariffs specific to them. The cheapest supplier for one business is often not the cheapest for the next, because each prices on the consumption band, meter type, contract length and credit profile in front of it. Compare the total annual cost of like-for-like contract lengths rather than the headline unit rate, and check the standing charge and any out-of-contract rate before signing.

Energy usage profile for Greenhouse and horticulture

Greenhouse and horticulture businesses typically experience high energy usage due to their need for controlled environments. This includes heating systems to maintain temperature, lighting to extend daylight hours, and ventilation to manage humidity levels. Seasonal changes can also influence energy demand, with peak usage often occurring in colder months when heating is essential. Understanding the specific energy requirements of your particular crops and adjusting your energy use accordingly can lead to more efficient operations.

What affects bills for Greenhouse and horticulture

Several factors can affect energy bills for greenhouse and horticulture businesses, including:

• Weather conditions impacting heating and lighting needs.
• Energy efficiency of equipment and facilities.
• Time of year, with increased demand in winter months.
• Type of energy tariff and contract terms.
• Scale of operations and the types of crops grown.

How to compare tariffs

When comparing energy tariffs for greenhouse and horticulture businesses, consider the following checklist:

• Identify your peak energy usage times.
• Review the terms and conditions of each tariff.
• Check if green energy options are available and feasible.
• Look for fixed vs. variable rate options.
• Assess the contract length and any early termination fees.
• Consider the supplier's customer service and support.

Gas vs electricity considerations

Both gas and electricity play crucial roles in greenhouse and horticulture businesses. Gas is often used for heating, which is vital for maintaining the optimal growth temperature, especially in colder months. Electricity is essential for lighting and powering equipment such as fans and irrigation systems. The choice between gas and electricity may depend on availability, cost-effectiveness, and specific business needs.

Switching process overview

The process of switching energy suppliers for greenhouse and horticulture businesses can be straightforward if planned properly. Here are the steps:

1. Review your current energy usage and contract terms.
2. Research and compare different energy suppliers and tariffs.
3. Select a new supplier that meets your needs.
4. Contact your chosen supplier to initiate the switch.
5. Provide the necessary information and agree on a start date.
6. Ensure that the final meter reading is submitted to your former supplier.

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