The Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010 (SSI 2010/44).

The Renewable Energy Relief Scheme will provide non-domestic rates relief from 1 April 2010, to renewable energy producers who are solely concerned with the production of heat or power (or both) from the following sources:

• Biomass
• Biofuels
• Fuel Cells
• Photovoltaics
• Water (including waves and tides, but excluding production from the pumped storage of water)
• Wind
• Solar Power
• Geothermal Sources

Note: Heat or power produced by Combined Heat and Power (CHP) systems is not classed as renewable, unless that system uses only sources of energy described in the points above and has an electrical capacity of 50 kilowatts or less.

Assessing Eligibility for Relief

In general, when assessing eligibility for Renewable Energy Generation relief, four criteria need to be considered for each business by the Dumfries and Galloway Council:

• Whether the business is solely concerned with the generation of heat or power by the means listed above
• Whether the property is in receipt of any other relief
• The level of other public sector assistance received by the business (in order to determine compliance with the State aids de minimis limit (see below) and
• The combined rateable value of all properties in Scotland of which the business is in rateable occupation or (if vacant) which the business is entitled to occupy.

Note: Where there are multiple entries on the valuation roll for the same ratepayer it is the combined rateable value of properties used for renewable energy production which should be considered for the award of this relief.

For example, a business has a number of properties with a total rateable value (RV) of £1m RV, and one of the individual properties is a wind farm with a RV of £300,000 used solely for renewable energy production.

In this example, the wind farm can receive 50% relief (because the renewable energy production part of the business falls into the "up to £430,000 RV band").

However, all relief or other financial assistance for all subjects for this ratepayer, across all properties for which they are liable, must be monitored by the ratepayer to ensure that they do not breach the State aid de minimis limit, regardless of whether or not the properties are concerned with renewable energy production.

State aid

Relief can be awarded for all individual properties concerned with renewable energy production up to de minimis State aid limits.

State aid is a European Commission (EC) term which refers to forms of public assistance given to undertakings on a discretionary basis, with the potential to distort competition and affect trade between Member State.  State aid rules apply to aid measures in any form and are equally applicable to tax measures such as non-domestic rates relief.

Further guidance is available from the State Aid Unit website

Application procedure for the Renewable Energy Generation Relief Scheme

The Renewable Energy Generation Relief Scheme is an application-based scheme.  To determine the exact amount of relief to be awarded, local authorities should ensure they have complete, accurate and up-to-date information on each of the business's properties in Scotland.  Businesses are required to apply to each local authority in which the business has a property in Scotland.  For the purposes of assessing the percentage relief available, businesses will have to provide details of all properties in Scotland which they own, lease or which they are entitled to occupy, regardless of whether they are occupied or vacant.