Rates relief can be granted where properties are 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 the pumped storage of water)
- wind
- solar power
- geothermal sources
A reduction (as in the table below) can only be made if your scheme entitles community organisations to:
- at least 15% of the annual profit
or - an amount equal to the annual profit equivalent to 0.5 megawatt of the total installed capacity of the project.
| Combined rateable value of all business properties in Scotland | 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 million | 10 |
| More than £4 million | 2.5 |
For community involvement schemes you will need to supply the following:
- Evidence including name of community organisations, amount of annual return, total installed capacity of the scheme and any other information that you believe would support your application.
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.
This 60% relief will be available until 2032.
How to apply
Apply for Renewable Energy Generation Rates 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.