Executive Summary
The hospitality sector has the potential to become a significant contributor to the UK’s energy security while reducing its own operating costs.
The Energy Power House Scheme is a government-backed loan programme that enables hospitality businesses—including hotels, pubs, restaurants and leisure venues—to invest in integrated energy infrastructure such as solar generation, battery storage, electrified heating, destination EV charging and electric commercial vehicles.
Rather than viewing hospitality businesses solely as energy consumers, this policy recognises them as distributed energy assets capable of generating electricity, supporting the local electricity network and improving community resilience.
The scheme combines affordable finance with clear technical standards, smart energy management and transparent digital administration to reduce business costs while strengthening the UK’s energy infrastructure.
The Problem
Hospitality businesses face some of the highest operating costs in the UK economy, with energy representing a significant and volatile expense.
At the same time, the electricity system is undergoing rapid change. Demand is increasing due to electrification of transport and heating, while renewable generation is becoming more decentralised and variable.
Many hospitality premises have:
- Large roof areas suitable for solar generation.
- Significant parking capacity suitable for EV charging.
- Predictable occupancy patterns.
- Long customer dwell times.
- Suitable buildings for battery storage and electrified heating.
Despite these advantages, current government support is fragmented across multiple schemes with separate application processes and objectives.
The UK lacks a single programme that transforms hospitality businesses into strategic local energy infrastructure.
Objectives
The Energy Power House Scheme aims to:
- Reduce long-term energy costs for hospitality businesses.
- Improve business competitiveness and resilience.
- Increase local renewable electricity generation.
- Expand destination EV charging across the UK.
- Accelerate the transition to electric commercial vehicles.
- Support the electrification of heating using suitable technologies.
- Improve local electricity network resilience.
- Reduce pressure on expensive transmission infrastructure.
- Support rural communities and tourism.
- Encourage investment through low-cost government-backed finance.
Policy Details
Integrated Infrastructure
Eligible businesses may apply for finance to install:
- Solar photovoltaic systems.
- Battery energy storage.
- Public or shared-access destination EV charging.
- Electric commercial vehicles.
- Electrified heating systems, including heat pumps, air-to-air systems and other approved electric technologies.
- Smart energy management systems.
The scheme is technology-neutral wherever practical, allowing businesses to adopt solutions best suited to their premises.
Battery Operation
Battery storage funded under the scheme is intended primarily to support the electricity network rather than commercial energy arbitrage.
Businesses may choose from several participation frameworks, allowing different levels of grid flexibility in exchange for corresponding financial incentives.
This ensures batteries contribute to local grid resilience while respecting business operational requirements.
EV Charging
Public charging is encouraged rather than mandated.
Applications will receive additional assessment points where charging infrastructure provides wider community benefits, such as overnight charging for residents without off-street parking or improved charging availability in rural tourism areas.
Businesses retain flexibility to determine access arrangements appropriate to their location and operational needs.
Digital Application Platform
Applications will be submitted through a digital platform supported by artificial intelligence and human oversight.
Applicants will upload supporting evidence, while government systems automatically incorporate relevant industry datasets such as:
- Energy consumption.
- Local electricity network capacity.
- Weather data.
- Population density.
- Tourism activity.
- Existing charging provision.
Every decision will include a detailed assessment report explaining how the application was scored.
Successful projects will be subject to audit.
Benefits
Businesses
- Lower operating costs.
- Reduced exposure to volatile energy prices.
- Lower transport costs.
- Additional revenue opportunities.
- Increased property value.
- Improved business resilience.
Communities
- Increased destination EV charging.
- Greater local energy resilience.
- Improved rural infrastructure.
- Support for tourism.
- Better utilisation of renewable electricity.
Electricity Network
- Increased distributed generation.
- Additional battery capacity.
- Reduced peak demand.
- Improved local flexibility.
- Reduced need for transmission upgrades.
Implementation
The scheme will be introduced gradually to avoid inflation within the solar and battery supply chains.
Funding will be allocated broadly as follows:
- 50% Small businesses.
- 30% Medium-sized businesses.
- 20% Large businesses.
Applications will be assessed using a weighted framework considering:
- Economic benefit.
- Grid benefit.
- Community benefit.
- Technical deliverability.
- Strategic infrastructure value.
Only approved installers meeting defined quality and financial standards may participate.
The scheme complements the NGX Business Energy Tariff, encouraging efficient electricity use through predictable peak and off-peak pricing while supporting wider grid stability.
Frequently Asked Questions
Why focus on hospitality?
Hotels, pubs and restaurants often possess the combination of roof space, parking, energy demand and customer dwell times needed to maximise the benefits of distributed energy systems.
Is this a grant?
No. The scheme provides government-backed low-cost loans designed to be repaid through reduced operating costs and additional revenues.
Why include batteries?
Battery storage helps businesses reduce costs while supporting the local electricity network through managed flexibility services.
Are businesses forced to make chargers public?
No. Public accessibility is encouraged through the assessment process rather than mandated. Businesses can determine access arrangements that suit their operational requirements.
Does the scheme only support heat pumps?
No. Any approved high-efficiency electric heating technology may be eligible where appropriate.
Why use artificial intelligence?
AI improves consistency, reduces administration and speeds up decision-making. Final decisions remain subject to human oversight.
Criticisms
“The scheme is too expensive.”
The programme is based primarily on repayable finance rather than grants. Public investment creates productive infrastructure with long-term economic benefits rather than ongoing subsidy.
“Government should not influence investment decisions.”
Government already supports energy infrastructure through numerous programmes. This policy simply aligns support with wider public benefits such as grid resilience and lower business costs.
“Battery control limits business freedom.”
Participation in grid flexibility services is voluntary. Businesses may choose from different participation frameworks depending on their operational requirements and preferred level of involvement.
“Why prioritise small businesses?”
Independent hospitality businesses often face the greatest barriers to investment despite providing significant economic and community value. Larger businesses remain eligible but receive a smaller proportion of available funding.
References
References to be added, including:
- National Energy System Operator (NESO)
- Ofgem
- Department for Energy Security and Net Zero
- Smart Export Guarantee
- Distribution Network Operator flexibility markets
- MCS Foundation
- Office for National Statistics
- VisitBritain tourism statistics
- UK Government EV charging strategy