Business rates reductions for renewable energy producers

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:

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

• Download an application form [PDF - 118.75KB]

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 

• Download an application form [PDF - 91.75KB]