Revolutionising retail: The power of real-time energy visibility
As the retail landscape evolves, supermarkets are leading the charge towards smarter, more sustainable energy use. Real-time energy management systems, especially when integrated with solar PV solutions, are changing the game, helping retailers cut costs and reduce carbon emissions in tandem.
In this feature, Hark Systems CEO Jordan Appleson discusses the benefits, challenges and transformative potential of real-time energy management in the supermarket sector.
The supermarket industry faces intense competition and slim margins. In this environment, optimising efficiency across every part of the business, from the supply chain through to on-site energy use, is critical.
Industry data shows that UK supermarkets currently account for approximately 3% of the country’s total electricity consumption. However, with the retail sector undergoing rapid digitisation and electrification, this demand is expected to surge in the coming years. A key challenge facing supermarkets will be meeting the growing demand for electric vehicle (EV) charging, both for commercial fleets and customer vehicles – a significant and costly energy load which will further escalate power requirements.
Of course, rising energy use, and therefore rising energy costs, is not the only issue keeping energy and facilities managers in the retail sector awake at night. They also need to balance these increases with ambitious carbon reduction goals.
Understanding the energy flow
To meet increasing energy demands, many supermarkets are turning to solar photovoltaic (PV) for clean, low-cost power. Their large, flat roofs are ideal for solar arrays, helping cut grid reliance and electricity costs during peak shopping hours. Adding battery storage allows excess energy to be used after sunset, boosting self-consumption and ensuring essential appliances stay powered.
Advancements in solar technology, like module-level power electronics (MLPE), are increasing energy yields, lowering costs and improving monitoring. But production alone isn’t enough – smart energy management is key to fully unlock its value. By integrating real-time data from solar systems and energy-intensive assets like freezers, lighting and EV chargers, retailers gain insights to streamline operations, reduce waste and unlock further savings.
Energy management on the edge
Implementing a cross-category energy management strategy in retail is complex. It requires a ‘single pane of glass’ – a unified platform to monitor and control energy production and consumption across their entire estate in real time. This can require installing thousands of sensors across equipment such as bakery ovens, freezer cabinets, lighting, HVAC, EV chargers and more, supported by edge computing to process millions of data points in real time.
Even at a single store, installing this infrastructure can be a significant undertaking. Scaling it across an entire network of stores, warehouses and logistics centres adds further complexity. However, the benefits of such an approach can be both rapid and transformative.
A Sainsbury’s success story
In 2017, Hark Systems partnered with Sainsbury’s to improve visibility and control of energy consumption across key asset groups, supporting the retailer’s goal to reach Net Zero emissions by 2040. Working closely with Sainsbury’s, the Hark team identified energy-intensive assets and conducted an on-site survey to connect them to the Hark Connect platform. A proof of concept was then deployed in a single store, monitoring multiple asset groups, including bakery ovens, refrigeration units, HVAC systems and lighting.
The initial energy monitoring highlighted errors in energy consumption processes that were the leading causes of high usage. For example, a malfunctioning asset was identified as being responsible for excessive energy draw, enabling Sainsbury’s to take corrective action and prevent further losses.
Following the success of the initial trial, Sainsbury’s scaled the Hark platform to more than 600 stores. Today, the retailer receives over 368 million energy readings daily across 40 different asset groups. This centralised system enables Sainsbury’s HQ to monitor all connected stores and devices, identify inefficiencies, remotely control energy usage and anticipate potential asset failures before they occur.
In terms of bottom-line impact, Sainsbury’s has reported a 4.5% reduction in lighting costs alone. For large retailers, a 4.5% annual saving can translate into millions of pounds.
Switching on new revenue streams
The impressive results achieved by Sainsbury’s, and the many other leading UK supermarkets Hark Systems works with, highlight the real, measurable benefits of investing in real-time energy management. While the return on investment varies by use case, it’s possible for retailers to see a return of £3 to £4 for every £1 spent on advanced monitoring solutions within just a year, making the financial case clear cut.
The business case for real-time energy management becomes even more compelling when we consider the transformation underway in the retail electricity market. We are entering a new era of flexible energy pricing, presenting exciting opportunities for enhanced energy efficiency and optimisation. Real-time monitoring enables retailers to navigate this shift effectively, allowing them to capitalise on favourable pricing changes and avoid potential penalties.
In a flexible pricing market, time-of-use (ToU) pricing strategies become incredibly important. Armed with a complete picture of energy consumption patterns across their stores, retailers can make smarter decisions about when and how to use energy.
For example, if a solar and battery system is in place, excess solar energy generated during the day can be used to pre-cool freezer units. This allows freezers to be turned off for an hour or two after sunset – when solar production drops and grid electricity prices typically peak – reducing costs without compromising the integrity of stored perishable goods.
Additionally, by using excess energy in this way, businesses can avoid violating grid export regulations, which limit how much energy can be exported to the grid. This is important as exceeding these limits can result in hefty fines.
The evolving energy landscape also presents opportunities for retailers to engage in energy arbitrage – storing solar energy or buying and storing energy from the grid when prices are low and then selling it back when prices rise. At this point, the focus shifts from simply saving money to generating revenue, an attractive prospect for any business.
By ingesting market operator data and tariff feeds and combining them with on-site energy information, real-time management systems enable intelligent energy trading. This enhances decision-making by enabling retailers to monitor market conditions and energy prices in real time and automatically buy and sell energy when trading conditions are more favourable.
While this process is still at an early stage, it’s important for businesses to proactively consider their energy strategies, particularly when planning new on-site generation assets.
For example, I think we’ll begin to see more commercial operators intentionally oversize solar PV systems to produce more energy than they need in order to take full advantage of energy trading opportunities.
Sustainable and efficient retail operations
Real-time energy visibility in supermarkets is more than a tech upgrade – it’s a strategic shift toward more sustainable, efficient operations. As energy demands rise and market dynamics shift, real-time monitoring will become essential.
By combining solar technology with advanced analytics, retailers can optimise energy usage and even engage in energy arbitrage, meeting current needs while preparing for a more profitable, sustainable future.
While implementation has its challenges, the right systems can help supermarkets lead on sustainability and navigate the complexities of a dynamic energy market.
