# Understanding your business electricity bill

A business electricity bill is more than a single unit rate. It includes the cost of the energy itself, standing and capacity charges, and a growing layer of non-commodity costs such as network and policy charges. On-site solar reduces the units you buy, cutting several of these charges at once.

## Unit rates and standing charges

The unit rate is what you pay per kilowatt-hour used, while the standing charge is a fixed daily cost for being connected. Larger sites may also pay capacity charges for the maximum demand they can draw.

## Non-commodity costs

A rising share of your bill covers network, balancing and policy charges rather than the energy itself. Many of these are tied to how much you draw from the grid, so reducing your grid usage reduces them too.

## Where solar helps

Every unit you generate on site is a unit you don’t buy, so solar cuts the commodity cost and can reduce demand-related and non-commodity charges. Battery storage helps further by shaving peaks that drive capacity costs.

## Frequently asked questions

**Why does solar cut more than just the unit rate?**

Because several charges are tied to how much you draw from the grid. Reducing your grid usage with on-site solar lowers the commodity cost and can reduce demand-related and non-commodity charges too.

**What information do you need from my bill?**

Your unit rates, standing charge and annual consumption — ideally with half-hourly data — let us model your savings accurately. See our guide to half-hourly data for more.

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Source: [Understanding your business electricity bill](https://ppafunding.com/guides/understanding-your-business-electricity-bill) · Author: PPA Funding team · Updated: 2026-07-30

PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the funder, the installer or the maintenance provider. The service is free to use; a commission may be earned from a partner at no extra cost. Content is educational and is not financial or tax advice.