What’s in store for the industry this year?

As investment begins to flow and momentum builds around workforce development and delivery, 2026 may emerge as a transformative year for the electrotechnical sector, says Jane Dawson, Head of External Affairs at ECA.

At risk of being a Pollyanna, dare I suggest 2026 is the year the UK turns a corner? For many businesses 2025 was tough. But with inflation and interest rates down, and with November’s Budget behind us, the question is: Can the industry seize the opportunities coming on stream in 2026?

At the start of last year, the independent Climate Change Committee (CCC) announced its seventh Climate Budget. The CCC’s evidence showed the biggest emitters of carbon are heat and transport. Their advice to Government was to speed up adoption of electric heat and electric vehicles. In response, the Government has introduced incentives for consumers, a boost for businesses engaged in this work.

Last year also saw significant public funds beginning to flow into infrastructure projects, with offshore wind, grid upgrades, nuclear, and data centres at the top of the Government’s agenda. These investments promise to drive jobs, enhance grid resilience, and underpin the UK’s energy transition.

Policy clarity needed

Yet, progress has been tempered by delays in key legislation promised in 2025 – in particular, the Future Homes Standard and the twice delayed Warm Homes Plan. These legislative hold-ups have created uncertainty for contractors and clients alike, slowing the roll-out of energy efficiency measures and dampening the pace of residential electrification. As we look ahead, clarity and urgency from policymakers will be essential if we are to unlock the full potential of public investment.

On the global stage, competition for private investment in new technology is fierce, despite political headwinds. The UK, with its world-class supply chain, deep technical expertise, and proven track record, is a strong contender. Investors need certainty about planning decisions and clarity on policy to give them the confidence to back major infrastructure projects. The UK must continue to demonstrate stability to attract the level of private investment needed for widespread opportunities for electrotechnical firms. 

What’s on the agenda?

As the year progresses, all eyes will be on the May local elections, which include significant elections for the Welsh Senedd and in Holyrood. Any major political shifts have potential to influence regional priorities on energy, skills, and infrastructure. 

ECA has launched a Welsh election Manifesto, setting out interconnected issues facing the electrotechnical industry, with solutions on how these might be overcome. Many businesses will recognise the urgent need to increase the size and quality of apprenticeship provision if the sector is to grow. In Wales this situation is particularly acute, with the number of electricians almost halving in the last decade. With demand growing, electrification goals cannot be achieved without thriving small businesses, who train the future workforce, and legislation to ensure installations are carried out to industry standards.

As the Government ramps up its delivery of electrification, 2026 is likely to see skills at the top of the political agenda. The shrinking electrical workforce threatens the Government’s growth and clean power ambitions. The transfer of Skills England – and therefore responsibility for apprenticeships and Further Education – to the Department for Work and Pensions signals a refreshed approach to tackling the skills crisis.

February will see the launch of ECA’s 2026 Electrical Skills Index. The Index will provide a robust, evidence-based picture of the state of skills within the electrotechnical sector, highlighting where intervention is needed and offering a practical roadmap to solving the challenges. Above all, it is a signal of our industry’s commitment to continuous improvement and eagerness to collaborate on solutions.

Last year saw a raft of changes relating to net zero technologies, such as incentives for buying electric cars and installing heat pumps. In response, during Sustainability Week in March, ECA will publish a Safe Energy Transition Charter. This will set out practical recommendations for reducing energy bills and maintaining efficient electrical installations. As electrification accelerates, it is vital the UK continues to enjoy the safe and reliable electricity we know today.

Powering the future

As ECA marks its 125th anniversary in 2026, it is worth pausing to reflect on just how far our industry has come since the days of gas lamps and early electrical installations. From Edwardian times to today’s smart grids and renewable technologies, the progress has been nothing short of remarkable. With the promise of widespread electrification and digitisation, the future holds an exciting prospect. If the past century has taught us anything, it is that our industry thrives on innovation, adaptability, and a shared sense of purpose for the good of all.

2026 stands before us as a year of renewal, resilience, and skills. With investment starting to flow, and a renewed focus on skills and delivery, the electrical sector is primed to power the future. Let us approach the year ahead with optimism, determination, and a clear-eyed vision for what electrification can achieve for generations to come.

eca.co.uk