Applications close 30 November 2026
UK photonics manufacturers could benefit from significant reductions in electricity costs through the government’s new British Industrial Competitiveness Scheme (BICS), with applications now open.
The scheme aims to reduce electricity costs for eligible manufacturing businesses by up to 25%, equivalent to savings of up to £40 per megawatt-hour (MWh).
More than 10,000 businesses across Great Britain are expected to benefit, with reductions beginning in April 2027. Eligible businesses will also receive an additional payment in 2027, intended to provide approximately an extra year’s worth of support.
Why does this matter for UK photonics?
High industrial electricity costs present a significant challenge to the competitiveness of UK photonics manufacturing, particularly for businesses operating energy-intensive production processes.
BICS could provide valuable relief for eligible businesses across the photonics supply chain, including manufacturers involved in semiconductors, optical components, fibre optics and precision instrumentation.
Who is eligible?
Businesses must satisfy four main requirements:
- Be registered with Companies House.
- Operate within an eligible manufacturing sector, identified through Standard Industrial Classification (SIC) codes.
- Manufacture eligible products in Great Britain, identified through Harmonised System (HS) codes.
- Consume at least 33 MWh of grid-supplied electricity annually at the manufacturing site.
Eligibility is determined by specific business activities, products and electricity consumption. Not all photonics businesses will automatically qualify.
How to apply
The application deadline is 11:59 pm on Monday 30 November 2026.
Businesses are encouraged to check their eligibility and prepare the necessary documentation, including manufacturing activity information and electricity consumption records.
Share your experience with PLG
The Photonics Leadership Group recognises the importance of competitive energy costs in sustaining and growing the UK’s photonics manufacturing capability.
We encourage photonics manufacturers to review the scheme and assess whether their operations qualify for support before the application deadline.
We would also welcome feedback from UK photonics businesses on their experiences of the scheme, particularly where companies face significant electricity costs but find themselves ineligible for support.
Understanding the extent to which BICS covers the UK’s diverse photonics manufacturing activities will help PLG represent the sector’s interests and inform future engagement with government on industrial energy costs.
