You may be able to get business rate relief on a property that supplies heat to other buildings, from a low carbon source.
What are heat networks
Heat networks take heat or cooling from a central source(s) and deliver it to different customers such as public buildings, shops, offices, hospitals, universities and homes.
By supplying multiple buildings, they avoid the need for individual boilers or electric heaters in every building.
Heat networks have the potential to reduce bills, support local regeneration and be a cost-effective way of reducing carbon emissions from heating.
How you may qualify for this business rates relief
To be qualify for heat network relief the property that provides the heat must:
- Have its own business rates assessment
- Be wholly or mainly used for the purpose of a heat network, and
- Over the next 12 months, is expected to generate heat from a low carbon source
The heat network relief scheme started from 1 April 2022.
Our cabinet is yet to approve our heat network relief policy, but once it has been approved we will provide full details.
If you think you qualify for this scheme, please contact our business rates team to discuss an award of this relief.
If you receive money from this scheme, it is likely that it will be seen as a subsidy from the government.
That means that you will need to make sure you meet the UK’s domestic and international subsidy control rules around the payment.
Please read through the guidance from the Department for Business and Trade to understand more about the subsidy rules and how it may affect your business.