Renewable energy generation relief

A targeted relief for renewable energy producers who are solely concerned with the production of heat or power (or both).

Eligibility for relief

When assessing eligibility for Renewable Energy Generation relief, we need to consider the following criteria for each business:

  • where the business is solely concerned with the generation of heat or power (or both) by the following means:

a. biomass;

b. biofuels;

c. fuel cells;

d. photovoltaics;

e. water (including waves and tides, but excluding production from the pumped storage of water);

f. wind;

g. solar power;

h. geothermal sources

  • whether the property is in receipt of any other relief
  • the level of other public sector assistance received by the business
  • the combined rateable value of all properties in Scotland of which the business is in rateable occupation or (if vacant) which the business is entitled to occupy
  • the European Community State Aid regulations

Note: 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.

From 1 April 2018

From 1 April 2018 the 25%, 10% & and 1.5% reliefs brought in during 2016 and 2017 are removed and replaced with a 60% relief where:

(a) the rateable value of the property does not exceed £5 million; and

(b) the lands and heritages are used solely for the generation of renewable heat or power, or both, from water only.

Properties entered into the Valuation Roll from 1 April 2016 and 1 April 2017 can still qualify for the reliefs detailed in the sections below. 

For properties entered into the Valuation Roll before 1 April 2016 the 2010 rates relief table still applies as long as the community organisation criteria introduced in April 2016 is also met.

From 1 April 2017

From 1 April 2017 the 2016 change below which introduced category (b) “so much of the annual profit of the project as is attributable to 1 megawatt of the total installed capacity of the project (or more)” changes from 1 megawatt to 0.5 of a megawatt.

Further to this any new property entered into the valuation roll on or after 1 April 2017, where the lands and heritages are used solely for the generation of renewable heat or power (or both) from water (including waves and tides but excluding production from the pumped storage of water) having a total installed capacity of up to one megawatt would receive 25% relief.  Where this is not generated by water the 10% and 1.5% reliefs still apply.

From 1 April 2016

Any application made after 1 April 2016 for the reliefs detailed in the table below will require the property to be used for a project where there are arrangements in place which give to a community organisation/s in return for investment in the project by that organisation/s, entitlement to a sum equivalent to—

(a) at least 15% of the annual profit of the project; or

(b) so much of the annual profit of the project as is attributable to 1 megawatt of the total installed capacity of the project (or more).

A new relief also comes into force for new properties entered into the valuation roll on or after 1 April 2016 where it is being used for the generation of renewable heat or power (or both).  Relief is awarded:-

(a) 10% where the rateable value of the lands and heritages is £500,000 or less; and

(b) 1.5% in any other case.

2010 Rates relief table

The amount payable as rates will be reduced as per the following table for any property solely concerned with the generation of heat or power by categories a – h above.

Rateable Value

Percentage of rates 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 £4,000,000

10%

More than £4,000,000

2.5%

How to apply

If you would like to apply for any of the Renewable Energy Generation Relief Schemes detailed above you can do so by completing our online Contact Form .  Please give details of your business name, address and contact details and a member of our staff will call you to discuss your application.

Download Renewable Energy Relief application form