Guide

Business rates relief

Last updated: 5 October 2018

Renewable energy generation relief

You may be able to get up to 100% off your business rates if your scheme has arrangements in place that entitle one or more community organisations to:

  • at least 15% of the annual profit, or
  • so much of the annual profit as is attributable to 0.5 megawatt of the total installed capacity of the project (or more)

To be eligible your scheme has to produce heat or power from any of 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

The generation activity should take place at the eligible property itself.

What you get

This depends on the rateable value (RV) of your property.

If you have more than one business property, the rateable values are combined.

  • RV up to £145,000 - 100% relief
  • RV £145,001 to £430,000 - 50% relief
  • RV £430,001 to £860,000 - 25% relief
  • RV £860,001 to £4 million - 10% relief
  • RV more than £4 million - 2.5% relief

From April 2018, if your scheme produces heat or power from water (including waves and tides, but excluding production from the pumped storage of water), you can get 60% relief.

This is only if the rateable value of the scheme is less than £5 million.

Business rates relief
Renewable energy generation relief