The Autumn 2025 Budget has significantly expanded the Network Charging Compensation (NCC) scheme, raising compensation for network charges from 60% to 90%. From April 2026, this could save the UK’s most energy-intensive businesses up to £420 million a year.

This comes after the government announced the British Industrial Competitiveness Scheme (BICS), which will exempt eligible businesses from the Renewables Obligation, Capacity Market and Feed-in Tariff charges starting in 2027.

Because both schemes are designed to ease electricity costs for the highest-consuming industries, it’s understandable that some may question whether the government is encouraging high energy use rather than supporting efforts to decarbonise.

Who actually benefits from these schemes?

To qualify for the BICS, a business must operate in an “Industrial Strategy growth sector” and meet a yet-to-be defined electricity-intensity threshold.

The Industrial Strategy growth sectors are some identified by the UK Government as being key to driving economic growth, including advanced manufacturing, clean energy and defence.[1]

NCC’s compensation scheme is even narrower. It only applies to businesses in officially recognised energy-intensive industries (EIIs) – like mining and plastic manufacturing – that hold an EII Exemption Certificate and spend more than 20% of their Gross Value Added (GVA) on electricity costs.[2]

Both schemes aim to reduce electricity costs for strategically important industries and attract long-term industrial investment.

Will these schemes reduce demand for commercial solar?

Possibly – but not by much.

Only around 550 businesses[3] are expected to qualify for NCC. With 5.7 million[4] businesses in the UK, that’s less than 0.01% of the market.

BICS is broader but still limited – roughly 7,000 businesses are expected to qualify, or 0.1% of UK businesses.[5]

In other words: these schemes apply to a tiny fraction of the commercial market.

Passing the pain on to smaller players

Exempting EIIs from non-commodity charges – policy costs, levies and network charges – means these costs are redistributed to everyone else, including SMEs.

The Regulated Asset Base (RAB) levy, introduced on bills in November 2025, is a prime example. Designed to fund nuclear expansion, it applies to nearly all business consumers except those classified as EII.

A small newsagent using 11,000 kWh annually will see around £38.50 added to their bill. A supermarket consuming 1,130,000 kWh will pay roughly £395.50 extra.[6]

While these amounts may appear modest, the broader context matters.

Despite an overall stabilising of wholesale prices, the average small business still pays around 70% more for electricity than it did in 2021–22.[7] With no clear signs of sustained price relief – and new grid-related costs being layered on – many businesses are more motivated than ever to adopt solar as a long-term hedge against volatility.

So, what’s the verdict for your commercial pipeline?

For most UK businesses, electricity remains a major and growing expense – and these new schemes don’t change that. If anything, they push costs onto smaller and mid-sized operators.

That’s why on-site commercial solar continues to be the most compelling investment for businesses seeking predictable energy costs, long-term savings and reduced exposure to grid volatility.

While a small slice of heavy industrial users may benefit from exemptions, the broader commercial market still faces strong financial pressure to cut grid reliance. For installers and energy partners, the solar business case remains as strong – if not stronger – than ever.

So fear not, solar installers – we’re confident there are sunny skies ahead for your commercial pipeline!

[1] https://www.envantage.co.uk/british-industrial-competitiveness-scheme-bics/

[2]https://assets.publishing.service.gov.uk/media/63bc2f7bd3bf7f262e2183c8/230104_ETII_List_for_gov.uk.pdf

[3] https://ngpltd.co.uk/budget-2025-what-uk-businesses-need-to-know-about-energy/

[4] https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release#trends-in-the-business-population

[5] https://www.gov.uk/government/news/government-acts-on-top-business-concern-and-cuts-electricity-bills-for-thousands-of-manufacturers-by-up-to-25

[6] https://www.moneysupermarket.com/gas-and-electricity/business-energy/a/the-nuclear-rab-levy-explained-what-it-means-for-your-business/

[7] https://olympuspower.co.uk/the-impact-of-higher-energy-costs-on-uk-businesses/