Energy Costs Remain a Major Challenge for Small and Medium-Sized Businesses

June 18, 2026

Source: E & M powernews

Energy costs remain the most pressing issue for small and medium-sized enterprises. At the same time, many companies are planning more flexible procurement models and investing in battery storage.

Energy costs are the most significant economic challenge for small and medium-sized enterprises. Dynamic rates would be an option for many of them. This is shown by the market study “Energie-Monitor Mittelstand 2026” conducted by the energy provider Trawa.

For the study, a total of 304 decision-makers from SMEs with 50 to 1,000 employees were surveyed in February 2026. The survey included companies from energy-intensive sectors such as manufacturing, logistics, wholesale, construction, and the hospitality industry.

In the ranking of the biggest challenges facing German SMEs, energy costs are by far the top concern. Thirty-four percent of respondents rated them as the most important challenge. This is followed by a shortage of skilled workers, rising labor costs, and regulatory requirements. In addition, about two-thirds of the companies stated that they fear another energy crisis like the one in 2022.

Cost Optimization Is Key

Cost optimization is a top priority when it comes to electricity procurement. For 55 percent of companies, maximizing savings potential is a very important criterion. Equally relevant are the ability to take advantage of price discounts and the procurement of electricity with sustainability features. The regional origin of the electricity, on the other hand, plays a lesser role.

The study also reveals a trend toward more flexible procurement models. While 75 percent of companies currently procure electricity exclusively at a fixed price, many respondents plan to adopt more dynamic models in the future. Overall, 69 percent of energy-intensive small and medium-sized enterprises intend to rely entirely or partially on dynamic electricity procurement in the future. However, the share of purely dynamic models remains limited. Most companies prefer hybrid approaches with both fixed and variable price components.

For those companies that are sticking with fixed prices, the primary arguments against dynamic rates are the lack of predictability and the feared risk of high costs (78 percent). Furthermore, more than half of the companies surveyed stated that they had not yet received an offer to switch to dynamic or partially dynamic models with flexible components in their electricity procurement.

Poor Ratings for Government Relief Measures

Battery storage is also gaining importance. Already, 25 percent of the surveyed companies use battery storage. Another 45 percent plan to use them. This means that a total of 70 percent of companies are either exploring this technology or already using it. The study cites reducing peak loads, taking advantage of variable electricity prices, and optimizing self-consumption as the most important areas of application.

The assessment of government relief measures is more skeptical. Less than half of the surveyed companies stated that they are on the list of particularly energy-intensive companies according to European Union criteria and are therefore, in principle, eligible to benefit from the planned relief measures for industrial electricity prices. Forty-six percent said no, and another 13 percent were unable to provide an answer. Furthermore, 81 percent of those surveyed who are eligible for subsidies find the bureaucratic burden of applying for relief too high, while 76 percent consider the potential economic relief to be too small.

Author: Katia Meyer-Tien