What businesses pay for electricity
The Department for Energy Security and Net Zero publishes what non-domestic customers pay, from a survey of suppliers, by size of user. Prices are fully delivered, including the Climate Change Levy, and exclude VAT (DESNZ QEP 3.4.2).
Non-domestic electricity prices by size of user, pence per kWh, including CCL and excluding VAT (DESNZ, published 29 September 2026)
| Size band | Yearly use | 2025 average | Apr to Jun 2026 (provisional) |
|---|---|---|---|
| Very small | 0 to 20 MWh | 34.9p | 38.4p |
| Small | 20 to 499 MWh | 29.1p | 28.6p |
| Small/medium | 500 to 1,999 MWh | 28.3p | 27.7p |
| Medium | 2,000 to 19,999 MWh | 25.9p | 25.2p |
| Large | 20,000 to 69,999 MWh | 24.4p | 24.4p |
| Very large | 70,000 to 150,000 MWh | 22.1p | 22.7p |
| Extra large | Over 150,000 MWh | 21.4p | 22.2p |
| Average | All non-domestic | 24.3p | 24.5p |
For comparison, the 2023 average was 27.2p and the 2022 average 20.9p on the same basis: the average rose sharply in 2023 and has eased since (DESNZ). The next update is due on 17 December 2026.
Why business prices differ from home prices
- No price cap: Ofgem says you are not protected by the price cap if you have a business energy contract
- Contracts: Businesses usually buy on fixed contracts; Ofgem notes many non-domestic customers were protected by contracts bought in advance, and higher wholesale costs may feed through when contracts end
- Size matters: Prices per kWh fall as use rises, as the DESNZ bands show
- Climate Change Levy: Charged on business supplies, not household ones
- VAT: The DESNZ figures exclude VAT; a VAT-registered business normally reclaims it
Non-commodity costs
The energy itself is only part of the price. Ofgem lists the building blocks of a price as wholesale costs, network costs for the pipes and wires, policy costs for government social and environmental schemes, the supplier's operating costs and its margin (Ofgem). For businesses, the Climate Change Levy is added on top: 0.801p per kWh from 1 April 2026 (HMRC). Ofgem also notes that some regulated costs, such as network charges, may change during a contract depending on its terms (Ofgem).
Electricity your own panels supply on site carries none of those: no wholesale price, no network charge, no levy. See the Climate Change Levy.
Is there a price cap for businesses?
No. The energy price cap protects people in Great Britain on standard variable tariffs for their homes. Ofgem lists having a business energy contract among the reasons you are not protected by it (Ofgem). Businesses negotiate with suppliers or brokers, and the contract decides the price.
Fixing part of your price with solar
Switching supplier changes the price of every unit you buy. Solar reduces how many units you buy. The units it replaces are worth whatever you would otherwise have paid, all-in, for as long as the panels run.
Example: A small business using 100 MWh a year
DESNZ 'Small' band (20 to 499 MWh): 28.6p per kWh in April to June 2026, including CCL, excluding VAT
Solar supplying 30,000 kWh of that on site would replace 30,000 × 28.6p = £8,580 of electricity a year at that price
If prices rise, the value of each unit you generate rises with them; if they fall, it falls
Example only, using the published average for the band. Your own price and your own site's output are what count.
See payback, solar PPAs (a fixed price without buying the panels) and half-hourly data.
Note: Averages from a government survey of suppliers. Your contract price may be higher or lower.
Sources
DESNZ QEP tables 3.4.1 and 3.4.2 (published 29 September 2026, Q2 2026 provisional), Ofgem's price cap pages and HMRC's CCL rates were read on 2 November 2026. DESNZ's next update is due 17 December 2026.
- DESNZ: Gas and electricity prices in the non-domestic sector (QEP tables 3.4.1 and 3.4.2, published 29 September 2026)
- Ofgem: Energy price cap and standing charges explained (who is not protected, what makes up a price)
- Ofgem: Understand your energy costs if you are not protected by the energy price cap (28 April 2026)
- GOV.UK: Climate Change Levy rates (HMRC)
Frequently asked questions
How much do businesses pay for electricity per kWh?
On average, 24.5p per kWh in April to June 2026, including the Climate Change Levy but excluding VAT, according to provisional government figures (DESNZ). Smaller users pay more per unit: businesses using under 20 MWh a year paid about 38.4p, and the largest users about 22.2p.
Is there a price cap for business energy?
No. Ofgem says you are not protected by the price cap if you have a business energy contract. Businesses agree prices with their supplier, usually on fixed contracts.
Why do small businesses pay more per kWh?
Larger users buy more and are cheaper to serve per unit, and the fixed parts of a bill are spread over more units. DESNZ's figures show the pattern every quarter: the smallest band pays the most per kWh and the largest the least.
What are non-commodity costs?
Everything on an electricity bill other than the wholesale energy itself: network costs for the wires and pipes, policy costs for government schemes, the Climate Change Levy, metering and the supplier's operating costs and margin. Ofgem lists these building blocks when it explains how a price is made up.
How does solar protect a business from electricity price rises?
Every unit your panels supply on site is a unit you don't buy, so it isn't exposed to wholesale prices, network charges or the Climate Change Levy. Once the system is paid for, the cost of that electricity doesn't change with the market.
Related pages
Solar paybackA worked payback example for a 100 kWp system, the factors that move the result most, the effect of tax relief, and a calculator to try your own figures.- Climate Change LevyElectricity you generate and use on site carries no Climate Change Levy, so the levy is part of what each solar kWh saves.
- Cutting energy costsStart with what you pay and when, cut waste and inefficiency, then generate your own: the order that gives the best return.
- Energy data analysisHow half-hourly consumption data shapes solar sizing and payback: getting the data, profile classes, baseload, weekend and seasonal use, self-consumption and batteries.