With effect from 1 April 2010, as detailed in The Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010, relief is available for properties used solely for the generation of renewable 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
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 is available as specified in the table below for those producing renewable heat or power from any of the sources noted above, only if your scheme has arrangements in place that entitle community organisations to;
- at least 15% of the annual profit
- or as much of the annual profit as is attributable to 0.5 megawatt (or more) of the total installed capacity of the project
Levels of Relief
|
Combined RV of all business properties in Scotland |
% of Rates Relief |
|---|---|
|
£145k or less |
100% (no rates payable) |
|
More than £145k but not exceeding £430k |
50% |
|
More than £430k but not exceeding £860k |
25% |
|
More than £860k but not exceeding £4m |
10% |
|
More than £4m |
2.5% |
Hydro Schemes
In addition to the above noted arrangements, from 1 April 2018 until 31 March 2032, qualifying renewable hydro properties are entitled to a 60% relief where;
The rateable value of the property does not exceed £5m
The lands and heritages are used solely for the generation of renewable heat or power, or both, from water only*
(“water” includes waves and tides, but does not include production from the pumped storage of water)
There is no requirement for hydro schemes 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 customeradvice@scotborders.gov.uk for further details.
Apply for a reduction
This relief is application based and cannot be automatically awarded.
If you feel you may be entitled, please complete the online application form.
When assessing eligibility for Renewable Energy Generation relief, we also need to consider the following criteria for each business:
- whether the property is in receipt of any other relief
- the level of other public sector assistance received by the business
Subsidy control rules
This type of relief is capped under the Subsidy Control Act 2022 as the activity is commercial in nature and the recipients receive an advantage on a selective basis due to the geographic restrictions that apply.