Business rates reductions for renewable energy producers

Relief is available for renewable and hydro energy producers who solely produce heat or power (or both) from certain sources and are involved with community organisations.

Renewable energy relief

To qualify you need to be producing heat or power from:

  • Biomass
  • Biofuels
  • Fuel cells
  • Photovoltaics
  • Water (including waves and tides but not production from pumped storage)
  • Wind
  • Solar power
  • Geothermal sources

The amount of relief depends on the total rateable value of your property/properties:

Combined rateable value of all business properties in ScotlandRelief
Up to £145,000100%
From £145,000 to £430,00050%
From £430,001 to £860,00025%
From £860,001 to £4,000,00010%
Greater than £4,000,0002.5%

Eligibility

We need to consider six criteria for each business when assessing eligibility for Renewable Energy Generation Relief:

  • whether the business is solely concerned with the generation of heat or power from specific sources
  • whether the property currently receives any other relief (state aid limits apply)
  • if the business receives any other public sector assistance
  • the combined rateable value of all properties in Scotland which the business occupies or is entitled to occupy
  • if, in return for investment within the project by a community organisation, they will be given entitlement equivalent to:
    • at least 15% of the annual profit of the project
    • annual profit attributable to 0.5 megawatt of the total installed capacity of the project

New properties

Any new land or heritage entered into the valuation roll from 1 April 2016 which is used solely for the generation of renewable heat or power (or both), may qualify for the following relief:

  • 10% where the rateable value is £500,000 or less
  • 1.5% in any other case

Apply for a reduction

Hydro energy relief

A new relief for hydro schemes comes into force from 1 April 2018.

60% relief may be awarded but can not be awarded along with renewable energy relief.

To qualify:

  • Lands and heritages are solely used for the generation of renewable energy from water (this includes waves and tides but excludes production from the pumped storage of water)
  • The rateable value is under £5 million

State aid de minimus rules also apply.

Apply for a reduction 

Page last updated: 29/03/2018
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