Business rates discounts

Renewable energy generation relief scheme

Application Form

The Renewable Energy Relief Scheme provides non-domestic rates relief. This is available to renewable energy producers who are solely concerned with the production 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.

Qualifying renewable properties with community investment which receives a specified monetary return qualify as below: 

  • Rateable value - £145,000 or less - 100 per cent rate relief
  • Rateable value -more than £145,000 but not exceeding £430,000 - 50 per cent rate relief
  • Rateable value -more than £430,000 but not exceeding £860,000 - 25 per cent rate relief
  • Rateable value -more than £860,000 but not exceeding £4,000,000 -  10 per cent rate reliefRateable value -more than £4,000,000 - 2.5 per cent rate relief

Qualifying renewable hydro properties operated by a ratepayer with no community investment are entitled to the following levels of relief from 1 April 2018.

  • Ratebale value under £5,000,000   -  60% relief 

Lower leves of relief are available prior to 1 April 2018.  Please contact the Rates Team for further details. 

State aid - Relief can be awarded for all individual properties concerned with renewable energy production up to de minimis state aid limits. Applicants should note that the Renewable Energy Generation relief for which they are applying is granted as de minimis aid for State aid purposes. There is currently a ceiling of 200,000 Euros of de minimis aid that can be granted over a three year period. 

State aid is a European Commission (EC) term which refers to forms of public assistance given to undertakings on a discretionary basis, with the potential to distort competition and affect trade between Member States.  State Aid rules apply to aid measures in any form and are equally applicable to tax measures such as non-domestic rates relief.

Further guidance is available from the State Aid Unit.

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