Rising Gas Prices Push UK Businesses to Rethink Heating Strategy, Driving Shift Toward Infrared Solutions

Stephen Levy

UK businesses are accelerating a shift away from traditional gas heating systems as widening price disparities between gas and electricity begin to fundamentally reshape commercial energy strategies.

Recent national reporting indicates that gas prices could rise by as much as 80%, compared to electricity increases of approximately 30%, placing sustained pressure on operating costs across commercial and industrial sectors. 

This divergence is prompting businesses to reassess how heat is generated, delivered, and controlled within their premises.

Industry experts say the shift isn't simply a response to rising costs, but a structural change in how heating efficiency is understood.

“Businesses are starting to realise that heating vast volumes of air in large or poorly insulated spaces is inherently inefficient,” Stephen Levy, CEO and Founder of Shadow Industrial told That's Business.

“When energy costs rise at this scale, those inefficiencies become impossible to justify.”

Infrared heating systems, which use electricity to deliver radiant heat directly to people and surfaces rather than heating the surrounding air, are increasingly being adopted as an alternative in warehouses, factories, retail environments and heritage buildings.

Unlike conventional gas systems, infrared technology enables targeted, on-demand heating, reducing energy waste in large or intermittently occupied spaces. 

Real-world installations across commercial settings have demonstrated cost reductions of up to 50% compared to gas-based systems, with further gains expected as the gap between gas and electricity prices continues to widen.

Analysts suggest if current pricing trends persist, the relative cost advantage of infrared heating could increase significantly, potentially exceeding 70% in certain applications.

The shift is also being reinforced by broader market dynamics. The UK remains exposed to volatile global gas markets influenced by geopolitical factors and supply constraints, while electricity is expected to benefit from increasing integration of renewable energy sources, improving long-term price stability.

Alongside the energy source itself, advances in digital heat management are playing a key role in improving efficiency outcomes.

Modern infrared systems can be integrated with intelligent controls, allowing businesses to heat specific zones at precise times and only to the required output.

“Wasting money heating empty industrial space is increasingly seen as an avoidable cost,” Levy added. “The technology now exists to heat only what is needed, when it is needed and that changes the economics entirely.”

For commercial operators, the implications are becoming clearer:

- Reduced operational costs through targeted heat delivery

- Improved energy efficiency in large or high-ceiling environments

- Greater control via zoned and digitally managed systems

- Reduced reliance on fossil fuels in line with decarbonisation goals

As energy costs become a central driver of business performance, the transition away from gas heating is shifting from a long-term sustainability goal to an immediate financial priority.

Industry observers expect infrared heating technologies to play an increasingly prominent role in this transition, particularly in sectors where traditional heating systems have historically struggled to deliver efficient results.

https://www.shadowindustrial.co.uk

Rethinking heating: The overlooked opportunity in commercial carbon reduction

TEAM Energy highlights the smart thermostat as a low-cost catalyst for carbon reduction.

When it comes to reducing carbon in commercial buildings, the conversation often jumps straight to high-profile investments, like solar panels, electric vehicle fleets, or large-scale building retrofits. 

Whilst these are important steps, they can also be costly, complex, and slow to implement. What’s often missed is a more immediate opportunity: smarter control of heating systems.

In a recent blog, TEAM Energy invites organisations to reconsider how they manage one of the biggest energy consumers in their buildings, heating. 

The case they make is simple but compelling: smart thermostats, typically seen as consumer gadgets, are in fact a strategic tool for carbon reduction.

The numbers behind the opportunity

Heating accounts for a significant share of energy use in non-domestic buildings, according to the Energy Saving Trust it can be up to 49%. Yet many organisations still rely on outdated or manual heating controls, leaving substantial efficiency gains untapped. Smart thermostats offer a practical alternative. 

These systems learn how buildings are used, adapt to occupancy patterns, and automatically optimise heating schedules, delivering energy savings of 10–15% as standard. In older buildings or those with limited zoning, the potential for even greater savings is significant.

From insight to action

What makes this conversation especially timely is the shift from theory to implementation. TEAM Energy has developed a Smart Thermostat Savings Estimator to help organisations understand the tangible benefits of upgrading their heating controls. 

By entering basic information, like building size, heating costs, and installation budget, users receive tailored estimates of potential savings, carbon reductions, and return on investment.

This isn’t about chasing the latest tech trend. It’s about making informed, data-driven decisions that align with broader sustainability goals. Smart thermostats offer a scalable way to reduce emissions, improve comfort, and demonstrate measurable progress, particularly for organisations developing or refining their carbon reduction strategies.

A strategic starting point

Impactful change doesn’t always require massive capital outlay. Sometimes, it starts with a thermostat—and a willingness to rethink the basics.

You can read the article and explore TEAM’s estimator. For organisations looking to make practical, cost-effective progress on their net zero journey, it’s a valuable resource—and a smart place to begin.

www.teamenergy.com