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 1st April 2016 relief is available for properties used for the generation of renewable heat or power (or both) which are involved in projects with community organisations.  Relief may also be available for certain properties which do not have community involvement.

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.

Relief Available Without Community Investment

This relief is only available for any new lands and heritages entered onto the Valuation Roll from 1st April 2017 which are used solely for the generation of renewable heat or power (or both), and may qualify for the following relief:

Rateable Value Of Property Percentage Relief
£500,000 or less 10%
More than £500,000 1.5%

For renewable heat from water only (includes waves and tides but excludes pumped storage of water)

No upper rateable value threshold

25%

Relief Available With Community Investment

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 1 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%

For further information contact us, or download the Renewable Energy Generation Relief (PDF)

Contact Us

Non Domestic Rates Team
Council Offices
High Street
Elgin
IV30 1BX

01343 563194

ndr-enq@moray.gov.uk

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