Orkney Islands Council
Working together for a better Orkney

Renewable Energy Generation Relief Scheme

The Renewable Energy Generation Relief Scheme provides non-domestic rates relief of up to 100% 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.

From 1 April 2016, rates relief will only apply if the property is used for a project which gives to a community organisation, in return for investment in the project by that organisation, entitlement to a sum equivalent to at least 15% of the annual profit of the project; or if the property is used for a project which gives to a community organisation, in return for investment in the project by that organisation, entitlement to a sum equivalent to so much of the annual profit of the project as is attributable to 0.5 of a megawatt (reduced from 1 April 2017 to 0.5 of a megawatt, previously 1 megawatt) of the total installed capacity of the project (or more).

A community organisation has the same meaning as in article 11 of the Feed-in Tariffs Order 2012, as amended by the 2015 Order, which is:

  • a registered charity; or
  • a community benefit or co-operative society (as registered under the Co-operative and Community Benefit Societies Act 2014); or
  • a community interest company (issued with a certificate of incorporation under section 36B(1) or 38A(1) of the Companies (Audit, Investigations and Community Enterprise) Act 2014, as amended; or
  • a subsidiary (as defined in section 1159 of the Companies Act 2006), wholly owned by a charity.

A community organisation must have 50 or fewer employees and in the case of a subsidiary the parent company must also have 50 or fewer employees.

Projects entered onto the Valuation Roll between 1 April 2016 and 31 March 2017, that has no community investment, will be entitled to 10% relief, up to 31 March 2017, where the Rateable value is £500,000 or less and 1.5% in any other case. Relief is granted as de minimus aid for State aid purposes.   

Projects entered onto the Valuation Roll on or after 1 April 2017 that are used solely for the generation of renewable heat or power (or both) from water (including waves and tides but excluding from the pumped storage of water) having a total installed capacity of  up to one megawatt will be eligible for 25% relief.  Otherwise, entitled to 10% relief where the RV is £500,000 or less; or 1.5% relief in any other case.

How to apply

You can download an application form for Renewable Energy Rates Relief from the 'Related Downloads' section of this page.  The application form also provides additional information on the relief available.