Guide for business owners

Business Electricity Prices: What UK Businesses Pay per kWh

1 of 10
  • The best option for your business
  • One vetted MCS installer
  • A free site survey

What kind of survey would you like?

Six quick taps, then where to reach you.

UK businesses paid an average of 24.5p per kWh for electricity in April to June 2026, including the Climate Change Levy and excluding VAT, on provisional government figures. Small users pay more: about 38.4p for businesses using under 20 MWh a year. There is no price cap for business contracts. Solar is one way to stop part of that price moving. DESNZ figures published 29 September 2026.

Free site survey: we match you with one MCS certified installer who covers your area and the size of the job. Your details go to that installer only, so you're not passed around or ring-rounded.

  • 130+ UK installers
  • MCS certified only
  • Free survey, no obligation
  • One installer, not a list of callers

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 bandYearly use2025 averageApr to Jun 2026 (provisional)
Very small0 to 20 MWh34.9p38.4p
Small20 to 499 MWh29.1p28.6p
Small/medium500 to 1,999 MWh28.3p27.7p
Medium2,000 to 19,999 MWh25.9p25.2p
Large20,000 to 69,999 MWh24.4p24.4p
Very large70,000 to 150,000 MWh22.1p22.7p
Extra largeOver 150,000 MWh21.4p22.3p
AverageAll non-domestic24.3p24.5p

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

Work out how much of your electricity solar could replace: book a free site survey.

Book a free site survey

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 only

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.

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.

Averages from a government survey of suppliers. Your contract price may be higher or lower.

Matching

How we choose your installer

We match you with one of 130+ MCS certified installers across the UK, and only those who pass our checks.

  1. 1

    We talk to you about the site and how the business uses electricity.

  2. 2

    Installers who cover your area see the project without your name or contact details.

  3. 3

    Our team picks the one best placed for it, by area, the size of the job and MCS certification.

  4. 4

    Only that installer gets your details, and they book the survey with you.

  5. 5

    Not right for you? Tell us.

What we check before we match you

  • MCS certification: current, and on the MCS installer register.
  • Other accreditations they hold, for example NICEIC or NAPIT, RECC and TrustMark. We favour installers with more relevant accreditations.
  • Their customer reviews on public review sites.
  • How long they have been trading, and that the company is active at Companies House with its accounts filed.
  • Stability: no frequent changes of directors in recent years.
  • That they cover your area and do jobs of your size.

If an installer doesn't meet these, we don't match them.

Four steps

What happens next

Book a free site survey and we match your site with one MCS certified installer that covers your area and the size of job. Four steps from a short call to a survey at your site.

  1. 1

    Book a call

    Fill in the short form. A member of our UK team calls you to ask about the site and how the business uses electricity.

  2. 2

    We check it's a fit

    Ownership or landlord consent, your energy spend, the roof or land and your electricity supply, so nobody's time is wasted.

  3. 3

    Matched with one installer

    Installers who cover your area see the project without your name or contact details. Our team picks the one best placed for it, and only they get your details.

  4. 4

    Your free site survey

    The installer visits at a time that suits you, looks at the site and gives you their proposal. Whether you go ahead is up to you.

Questions

Business electricity prices: FAQs

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 22.3p.

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.

Book a free site survey

Tell us about the business and roughly what it spends on electricity. We'll call to go through the checks, then arrange the survey with one MCS certified installer.

  • Free to your business
  • No obligation
  • Your details go to one installer only
Book my free site survey

Free, no obligation

We match you with one of 130+ MCS certified installers across the UK, and only those who pass our checks.

Your sector

Solar for other kinds of business site, and our guides for business owners. Commercial solar for businesses

Guides for business owners