Relief may be granted to a ratepayer where the premises are used solely for the generation of renewable heat or power (or both).
The main legislation governing this is the Non Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010 and The Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Amendment Regulations 2018
Qualifying criteria and level of awards
This allows for Rates Relief to be awarded where a property is used solely for the generation of heat or power or both from the following sources;
- Biomass
- Biofuels
- Fuel cells
- Photovoltaics
- Water (including waves and tides, but excluding the pumped storage of water)
- Wind
- Solar power
- Geothermal sources
For those producing renewable heat or power from any of the sources noted above, a reduction may be made as specified in the table below only if your scheme has arrangements in place that entitle community organisations to;
- at least 15% of the annual profit
- so much of the annual profit as is attributable to 0.5 megawatt (or more) of the total installed capacity of the project
Please note that the generation activity must take place at the eligible property itself; where the property is used to create fuel sources to be used elsewhere it is not eligible for this relief.
| Combined Rateable Value of all business properties in Scotland | % of Rates Relief |
| £145,000 or less | 100% |
| More than £145,000 but not exceeding £430,000 | 50% |
| More than £430,000 but not exceeding £860,000 | 25% |
| More than £860,000 but not exceeding £4,000,000 | 10% |
| More than £4,000,000 | 2.5% |
Hydro Schemes
In addition to the above noted arrangements,from 1 April 2018, a reduction of 60% is available to those producing renewable heat or power from water, provided the rateable value of the scheme is less than £5,000,000
This does not require the scheme to meet the qualifying criteria relating to community involvement or total installed capacity limits.
Previous Relief Schemes
Please note that lower levels of relief were available prior to 1 April 2018 for hydro schemes and new entries to the Valuation Roll. Please contact Local Taxes for further details.
State Aid
All renewable energy relief is subject to Deminimus aid (State-Aid) Rules which limits relief to a maximum of €200,000 sterling equivalent over a three year period.
How do I apply?
Apply online for Renewable Energy Relief
For further information please contact Local Taxes on 01738 477430 or email LocalTaxes@pkc.gov.uk.
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