What is an ESOS audit and why it matters for factories?
If you run a factory in the UK, you’ve probably heard about ESOS – the Energy Savings Opportunity Scheme.
It’s not optional – if your business has more than 250 employees or a turnover above £44 million.
It’s a government-mandated programme designed to make large organisations review their energy use and identify opportunities to save money while reducing waste.
But smaller factories should consider doing an ESOS survey too, as they can substantially reduce costs and boost profitability from the outcomes.
So, what exactly is an ESOS audit?
Think of it as a comprehensive health check for your energy use. A qualified assessor examines how your business consumes energy across three areas:
- Buildings (your factory floor, offices, warehouses)
- Processes (production lines, machinery, heating and cooling systems)
- Transport (company vehicles, fleet operations, logistics)
The audit doesn’t just record usage. It must also highlight cost-effective energy efficiency opportunities.
The key word here is “opportunity.” ESOS doesn’t force you to make changes, but it shines a light on where you’re wasting energy – and money.
For factories, this is particularly valuable.
Manufacturing is energy intensive, and even small efficiency improvements can produce huge annual savings.
An ESOS audit might show that upgrading compressed air systems, insulating pipework, switching to LED lighting, or optimising heating controls could cut thousands of pounds from your bills every year.
But the biggest opportunity often goes beyond efficiency tweaks.
One of the most impactful recommendations an ESOS audit can highlight is on-site renewable generation – particularly rooftop solar panels.
Why?
Because unlike a one-off efficiency upgrade, solar delivers long-term reductions in grid electricity use, locking in lower costs for decades.
Here’s where things get interesting for factory owners. Many assume solar requires heavy upfront investment.
In reality, modern financing options – from asset finance to solar system rental – mean factories can install panels with no capital outlay and see immediate positive cashflow.
In other words, your electricity bills drop more than your repayments cost, so you’re in profit from month one.
From a compliance point of view, acting on ESOS recommendations isn’t mandatory.
But ignoring them is like paying for a full health check and then refusing free medicine.
If your audit highlights solar, implementing it doesn’t just tick the compliance box – it transforms it into a profit engine.
In summary…
An ESOS audit is more than just red tape. For factories, it’s a chance to:
- Uncover hidden energy costs
- Identify efficiency improvements
- Explore renewable solutions like solar
- Turn a legal obligation into a business advantage
ESOS compliance isn’t just about staying on the right side of the law – it’s a springboard for factories to make more profit, whilst embracing the future of energy.
Author: Darren Turner owner of Commercial Solar Systems Ltd.
