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Rates relief

Renewable Energy Generation Relief

The Renewable Energy Generation Relief Scheme provides non-domestic rates relief to be awarded to renewable energy producers who are solely concerned with the production of heat or power or both.

Relief is not awarded automatically and an application for relief must be made by the ratepayer, or a person authorised to act on behalf of the ratepayer.

You may be eligible

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 production from the pumped storage of water);
  • Wind
  • Solar power
  • Geothermal sources

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.

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 £145,000 but not exceeding £430,001 25%
More than £145,000 but not exceeding £430,002 10%
More than £145,000 but not exceeding £430,003 2.50%

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.

What evidence do I need to submit?

  • a copy of constitution
  • a copy of your latest audited accounts.

We kindly request you to submit the necessary supporting evidence for your application. Please be informed that failure to provide the requested documentation may result in the assessment of your application being delayed or rejected. We appreciate your prompt attention to this matter. 

How do I apply?

To apply for this relief, email the Revenues Team businessrates@northlan.gov.uk or call 01698 403213 for an application to be issued.  

Or,

View and manage your non-domestic rates account online (see below).

Register for secure access to your business rates account online.

View your information at any time without needing to keep track of or store paper bills.

Remember, if you are granted relief and the circumstances that led to that relief change, you must tell us. 

Page last updated:
29 Oct 2024

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