Discounts for Business Rates

District Heating Relief

This relief is administered under The Non Domestic Rates (District Heating Relief) (Scotland) Regulations 2017.

50% relief is available where a property is used wholly or mainly for the purposes of a district heating network. 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 means 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

90% relief is available a property is used wholly or mainly for the purposes of a district heating network 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. In terms of this relief, renewable sources means:

  • 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 cold unavoidably generated as a by-product of another process, which would be wasted if not used for the purposes of a district heating network
  • the thermal treatment or incineration of waste materials that would not otherwise be recycled or reused

Apply for District Heating Relief

Page last modified: 18 June 2026