UK Greenhouse Expansion at Risk as Energy Costs Threaten Growers’ Investment Plans

Britain's greenhouse industry has delivered a clear message to policymakers: modernisation is essential, but affordable energy and commercially viable investment must come first.

Findings from the first consultation on the proposed UK Greenhouse Modernisation and Expansion Programme (UK-GMEP) reveal strong support for a coordinated national strategy, alongside significant concerns about the financial realities facing growers.

According to HortiDaily, the consultation, conducted between 15 September and 28 October 2026, found that every submission supported a coordinated national approach, with 88% strongly agreeing.

However, respondents warned that investment in new greenhouse infrastructure would achieve little without tackling the fundamental challenges of energy affordability, access to finance and international competitiveness.

Energy costs emerge as biggest obstacle

Energy uncertainty dominated the consultation findings, with every submission identifying future energy costs as a major or critical barrier to investment.

More than 80% of respondents also raised concerns about electricity grid capacity and connections, highlighting the infrastructure challenges involved in expanding domestic greenhouse production.

Both capital costs and future energy prices were identified by 63% of respondents as priorities requiring urgent attention, while half highlighted access to suitable heat sources.

Dr Sven Batke, Chair of the Greenhouse Innovation Consortium (GIC), which is leading the programme, summarised the fundamental challenge facing the industry:

"Before we build more, can we afford to grow?"

One respondent, drawing on experience managing a 12-hectare pepper operation, reinforced the commercial reality, explaining: "It all really boils down to heating cost and produce prices."

The findings suggest that increasing greenhouse capacity without first establishing sustainable operating conditions risks creating further financial pressure for producers.

Modernisation must go beyond new technology

The proposed UK-GMEP is intended to modernise ageing greenhouse facilities, encourage investment and accelerate the adoption of technologies capable of improving productivity and resource efficiency.

However, respondents stressed that successful modernisation requires a coordinated approach rather than isolated investment in equipment or individual facilities.

Energy, water and resource integration emerged as the leading programme priority, selected by more than 60% of respondents.

Greenhouse infrastructure renewal and innovation and technology deployment each received support from 50%.

The consultation also identified support for government-backed long-term finance, commercial technology demonstrations and independent technology validation.

Opportunities to integrate greenhouse production with other industries, particularly through waste heat and shared energy and water resources, were also highlighted.

International competitiveness raises concerns

Beyond infrastructure, respondents questioned whether UK growers could remain competitive against overseas producers operating under different energy, labour and production costs.

Some favoured concentrating investment in established horticultural regions where expertise, infrastructure and supply chains already exist. Others warned that smaller growers could struggle to access proposed financial support.

The findings highlight the limitations of relying on technological improvements alone to strengthen domestic food production.

Modern greenhouses may deliver greater efficiency and productivity, but the consultation makes clear that they cannot independently overcome wider economic disadvantages.

For British growers competing in international markets, commercially sustainable production remains central to any meaningful expansion programme.

The message from the consultation is clear: Britain's greenhouse industry is ready to modernise, but expansion must be underpinned by affordable energy, reliable infrastructure and a compelling commercial case for investment.