Non-Domestic Rates - Renewable Heat or Power Generation
Renewable Energy Generation Relief
The Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010 permits local authorities to reduce the sums payable in rates for properties in Scotland. From 1 April 2018 relief is available for properties used for the generation of renewable heat or power (or both) which are involved in projects with community organisations, and for properties used in the generation of heat or power or both from water.
Qualifying Renewable Energy Schemes
The qualifying conditions for this scheme state that a ratepayer may qualify if they own, lease or is entitled to occupy, business properties in Scotland which are solely concerned with the generation of heat or power (or both) from the following sources:
● bio fuels; ● biomass; ● fuel cells; ● geothermal sources; ● photovoltaics; ● solar power; ● wind; or water (including waves and tides, but excluding production from the pumped storage of water).
Note: Combined Heat and Power (CHP) systems are only considered to be renewable if they use the sources of energy listed above and have an electrical capacity of 50 kilowatts or less.
This relief is available for renewable properties with community investment which receive a monetary return. The level of relief awarded will depend on:
• the rateable value (or combined rateable values) of the property which the business occupies in Scotland;
• whether or not the property is eligible for one of the existing rate relief schemes;
• if there are arrangements in place which give to a community organisation(s), in return for investment in the project by that organisation, entitlement to a sum equivalent to
(a) at least 15% of the annual profit of the project; or
(b) so much of the annual profit of the project as is attributable to 0.5 megawatt of the total installed capacity of the project (or more)
The level of renewable energy generation rate relief available is set out in the table shown below:
|Rateable Value Of Property||Percentage Relief|
|Up to £145,000||100%|
|£145,001 to £430,000||50%|
|£430,001 to £860,000||25%|
|£860,001 to £4,000,000||10%|
|Greater than £4,000,000||2.5%|
Qualifying Renewable Energy from Water Schemes
Rates relief of 60% may be awarded if:
• a property is used solely for the generation of renewable heat or power or both from water: and
• if the property's rateable value does not exceed £5 million
Earlier Relief Schemes
A number of rates relief schemes were in operation prior to 1 April 2018 for hydro schemes and new entries inserted on the Valuation Roll. If you require any information about these superseded schemes, please contact us.
If you would like to obtain more details of any of these schemes or for further information contact us, or download the Renewable Energy Generation Relief (PDF)
Non Domestic Rates Team