With effect from 1 April 2017 50% relief is available where a property is used wholly or mainly for the purposes of a district heating network. This relief is available until 31 March 2032.
New properties entered on the valuation roll on or after 1 April 2021 used wholly or mainly for the purposes of a district heating network which is powered wholly or mainly by renewable generation may receive 90% relief.
From 1 April 2024, a property used wholly or mainly for the purpose of a district heating network may receive 90% relief where it is powered by renewable energy sources, and at least 80% of the thermal energy generated by the network in the year derives from renewable sources. This relief is available until March 2027.
In terms of this relief a district heating network is defined as:
- the distribution of thermal energy in the form of steam, hot water or chilled liquids from a central source of production through a network to multiple buildings or sites for the use of space or process heating, cooling or hot water and includes any attached communal heating.
Communal Heating is defined as:
- the distribution of thermal energy in the form of steam, hot water or chilled liquids from a central source in a building which is occupied by more than one final customer, for the use of space or process heating, cooling or hot water.
How to apply
Apply for District Heating Relief
Subsidy rules under the Subsidy Control Act 2022
This relief may be offered as a Minimum Financial Assistance (MFA) subsidy under the Subsidy Control Act 2022. MFA is capped at a maximum of £315,000 over a three-year period - cumulated over the current and previous two financial years.
You must consider whether you have already received support from any public sector body in the current financial year and the two financial years immediately preceding this. The council will determine this from the completed Subsidy Information in your application.
Any MFA (or similar) subsidy awarded to the applicant will be relevant if the applicant wishes to apply, or has applied, for an MFA subsidy.
For more information regarding your obligations under the above Subsidy Control act please see the UK subsidy control regime page on GOV.UK or seek independent advice.
Please note: In accordance with Scottish Government guidance all recipients of Rates Relief will have their details published quarterly. This information is available on the council's Open Data site.