UK greenhouse growers are gearing up for a perfect storm. From April 2026, the controlled-environment horticulture sector is set to face a 94% increase in electricity network charges — a move described by the British Tomato Growers’ Association (BTGA) as a “devastating” escalation that could push growers into “an existential crisis”.
At the same time, the adoption of agritech innovations is accelerating, and here lies a critical opportunity: emerging technologies might help greenhouse growers counter what could otherwise be crippling energy bills. This article unpacks the challenge, outlines the agritech solutions available, and examines how greenhouse businesses might deploy them in time to alleviate the cost pressures ahead.
The Energy Shock
Growers in the protected-horticulture sector are bracing for sharp cost hikes. Under changes to the UK electricity transmission charging framework, fixed charges will rise substantially, particularly for high-usage sites. According to Ben Ablewhite of Now Then Energy: “All greenhouses will see increases in TNUoS fixed charges from April, but the magnitude of the changes varies dramatically.”
He adds: “Seasonality of demand is not currently taken into account in the levying of charges. … The assignment of residual charging bands is based on the agreed supply capacity, which is the maximum a site is allowed to use.”
In effect, even if a greenhouse uses less electricity part of the year, the charges are pegged to its maximum capacity — penalising seasonal or variable demand structures.
The numbers are stark. Some large glasshouse businesses could see close to £1 million added to annual operating expenses. Electricity prices for UK industrial users are already higher than many European peers: about £56/MWh compared with £34–38/MWh in France, Germany and the Netherlands.
Growing year-round, high-energy crops such as tomatoes, cucumbers and peppers are particularly at risk. The margins are already tight, and there is limited head-room to absorb such cost increases without passing them on to the consumer, or worse, curtailing production.
Why Agritech Is Suddenly So Relevant
If growers are to avoid being squeezed out of business, agritech isn’t optional — it’s essential. Independent analysis has highlighted that technological innovation can help tackle the interconnected challenges facing controlled-environment horticulture.
Agritech spans a wide array of solutions — robotics, IoT sensors, data analytics, artificial intelligence, and controlled-environment technologies. And it’s not just about yield. Many studies note that agritech can also reduce energy demand and therefore ease cost burdens.
Here are some key ways agritech can help greenhouse growers meet the energy challenge:
- Intelligent lighting control: Research on indoor farming environments has shown that smart scheduling of artificial lighting can reduce annual energy costs by around 20% by modulating light intensity and timing to align with electricity price signals.
- Precision climate and micro-environment management: Smart greenhouse control systems using sensors and AI can optimise heating, cooling, ventilation, lighting and CO₂ enrichment — meaning less wasted energy.
- Integrated renewables and off-grid options: Some controlled-environment systems can co-locate with solar, wind or waste-heat sources, reducing dependence on grid electricity and insulating growers from network-charge volatility.
- Data-driven scheduling and flexibility: By adjusting production schedules and energy-use profiles (such as shifting lighting or ventilation into non-peak windows), growers can flatten demand peaks that trigger higher network charges.
- Alternative low-carbon heat sources: Innovations in CHP, heat recovery and low-carbon heating align closely with modern greenhouse design and control systems, reducing reliance on traditional fuels.
Putting It Together: A Roadmap For Growers
With the cost shock looming in April 2026, greenhouse businesses should move now. Here’s a suggested roadmap for how agritech can be harnessed as part of the solution.
1. Audit and Benchmark Energy Use
Understand how energy is used across each greenhouse: lighting, heating, cooling, ventilation, CO₂ enrichment. Benchmark performance and identify high-cost hotspots.
2. Explore Smart Monitoring & Control
Introduce sensors, data platforms and analytics to monitor micro-climates and energy usage. Use the insights to identify inefficiencies and opportunities to reduce consumption without compromising yield.
3. Optimise Light and Load Scheduling
Work with lighting providers and software systems to schedule artificial lighting and other high-load processes to align with lower-cost, off-peak grid periods.
4. Consider Renewable & On-site Generation Options
Where viable, invest in solar PV, battery storage or waste-heat recovery systems. These reduce the draw on the grid and therefore the exposure to network charge increases.
5. Engage with Policy & Relief Programmes
The exclusion of protected horticulture from the Energy Intensive Industries (EII) Exemption and the Network Charging Compensation (NCC) scheme is a significant barrier. Growers should work collectively to make the case for inclusion.
As Ablewhite noted: “If greenhouses are to survive – and especially lit production – costs have to be passed on to the consumer via supermarkets … it’s essential that greenhouses are offered access to the same energy cost relief schemes as other energy-intensive industries that the UK Government deems to be at a potential competitive disadvantage.”
6. Align Crop & Production Strategy
Assess which crops are most energy-intensive and examine whether shifting to lower-energy varieties or adjusting production patterns is feasible. Modern CEA systems also offer the potential for higher yields per square metre — helping protect margins amid rising energy costs.
Why This Matters For The UK Industry
With margins tight and competition strong from European producers operating with lower industrial energy costs, there’s no denying that UK horticulture is increasingly vulnerable. And, a 94% increase in network charges threatens to render many year-round operations unviable.
Agritech provides a clear pathway to resilience. It enables growers to reduce energy waste, improve efficiency, integrate low-carbon systems and become less exposed to volatile electricity markets.
While government strategies aim to reduce wholesale electricity prices by 2035, growers cannot wait. They need solutions now!
Technological innovation won’t eliminate the cost shock entirely, but it can give growers the tools to navigate it — and in some cases, even emerge stronger, more efficient and more competitive.
Ultimately, UK greenhouse growers are on a knife’s edge. With substantial electricity network charge increases a coming certainty, the financial stakes are extremely high. But agritech is ready, available and capable of making a material difference right now.
For those who act early, agritech may well be the difference between survival and being squeezed out of the market and the industry can’t afford to wait!
