Business Rates Relief for Commercial Solar and Battery Storage
A Valuable Incentive for Businesses
Business rates relief can significantly improve the financial case for commercial solar PV and battery storage systems.
In England and Wales, qualifying renewable energy plant and machinery used for on-site generation and storage may benefit from business rates exemptions introduced by the government.
This support was designed to encourage investment in renewable energy and help businesses improve energy efficiency without increasing operational costs through higher business rates.
What the Relief Can Cover
In many cases, eligible systems may include:
- rooftop solar PV installations
- battery energy storage systems
- associated renewable energy equipment
Without this type of relief, installing renewable energy infrastructure could potentially increase a property’s rateable value.
The exemption helps reduce this concern and provides greater confidence when investing in solar technology.
Relief Periods and Regional Differences
In England and Wales, current business rates exemptions for qualifying renewable energy plant and machinery are scheduled to run from April 2022 until March 2035.
Scotland also offers renewable energy relief schemes for certain non-domestic installations, although the structure and eligibility rules may differ.
Because government policies and rating rules can change over time, businesses should always confirm the latest position before relying on projected savings.
Why This Matters Financially
Business rates relief can improve the overall return on investment for commercial solar and battery projects by helping businesses avoid additional ongoing property-related costs.
Combined with:
- reduced electricity bills
- export revenue opportunities
- potential tax allowances
- energy price protection
this can strengthen the long-term value of a renewable energy installation.
Check Eligibility and Paperwork Carefully
Relief is not always applied automatically.
Depending on the installation and property arrangement, businesses may need to:
- notify the local authority
- update VOA records
- confirm system eligibility
- provide supporting information
Checking the process early can help avoid delays or missed opportunities.
Take Professional Advice Where Needed
For larger projects or more complex property arrangements, it may be sensible to seek advice from:
- a ratings advisor
- accountant
- commercial energy consultant
- tax specialist
This can help ensure the business fully understands the available reliefs and any wider financial implications.
Supporting Long-Term Solar Investment
Business rates relief forms part of a wider effort to support commercial investment in renewable energy and battery storage.
For many businesses, these exemptions help improve project viability while reducing concerns about future operating costs.