Business Rates and Rooftop Solar in England, Scotland and Wales
Updated 10 November 2026 · SEO Dons Editorial
Does rooftop solar raise a business's rates?
Not through the solar plant itself, while the exceptions below apply. Rating law assumes that certain plant and machinery forms part of a property, and England, Scotland and Wales have each added an exception for onsite renewable plant. In England and Wales the exception covers plant and machinery used or intended to be used for the generation, storage, transformation or transmission of power where the energy sources or technologies are mainly or exclusively listed ones, including photovoltaics and solar power.
| Nation | Instrument | Exception starts | Exception ends |
|---|---|---|---|
| England | Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022, SI 2022/405 | 1 April 2022 | Days before 1 April 2035 |
| Scotland | Valuation for Rating (Plant and Machinery) (Scotland) Amendment Regulations 2023, SSI 2023/32 | 1 April 2023 | 31 March 2035 |
| Wales | Valuation for Rating (Plant and Machinery) (Wales) (Amendment) Regulations 2023, WSI 2023/1229 | 1 April 2024 | Days before 1 April 2035 |
Scotland's explanatory note describes the same treatment: plant installed on a non-domestic property and used for generation, storage, transformation or transmission of power from wholly or mainly renewable sources is not relevant for valuation. Northern Ireland has separate rules, covered on the Northern Ireland page. Nation-specific context is on the Scotland and Wales pages, and capital cost is on the commercial solar cost guide.
What stays rateable?
The VOA's Rating Manual, which covers England and Wales, says the value of any named Class 1 plant where the energy source is renewable is not included in the valuation of the property. It also says the land and settings accommodating the plant remain rateable. On installations of less than about 50 kW the residual value is likely to be de minimis. For installations above 50 kW, a specialist VOA team calculates a value for the residual elements that are still rateable, such as the supports and brackets.
When can an array be rated as a separate property?
The exception is tied to where the power goes. The Rating Manual says that where power from a generation plant is wholly or mainly for export and greater than 10 kW, it will normally constitute a separate hereditament requiring assessment. Its practice note for the 2026 list describes the exception as applying where the majority of power generated is consumed within the hereditament. A mainly exported array of less than 10 kW is treated as de minimis.
The Rating Manual gives an example of an arrangement that falls on the other side of the line: an energy company installs PV panels on a factory roof with the power wholly or mainly exported to the network, and the factory owner receives rent or cheap electricity. Sizing an array to the building's own demand is covered on the sizing page.
How does the 2026 revaluation interact with the exception?
The exception sits in the regulations, not in the revaluation, so a new list does not switch it off. In England and Wales the VOA updated the values of over 2 million properties for the list that came into effect in April 2026, with an antecedent valuation date of 1 April 2024. Rateable values are the rent a property could have been let for on that date. The Rating Manual's 2026 practice note states the exception in the same terms: from 1 April 2022 until 1 April 2035, and from 1 April 2024 in Wales, where the majority of power generated is consumed within the hereditament.
Scotland revalues every three years. Its 2026 revaluation was based on a tone date of 1 April 2025, and the Scottish Assessors value each property. A change in a building's rateable value at revaluation reflects rental values on the valuation date, so do not assume a bill change is down to the array.
Scotland: Business Growth Accelerator and renewable energy relief
Two Scottish reliefs refer to solar or photovoltaics. The Business Growth Accelerator means improved properties that contain buildings see no rates increase for 12 months from the point the rateable value is amended as a result of the improvement. The Scottish Government's relief guidance lists the installation of a sprinkler system, air conditioning, underfloor heating or solar panels among typical improvements, and says property improvements comprise plant and machinery within class 4 of the 2000 regulations. If an assessor does enter an increase after works, that is the relief that can delay the increase.
The separate renewable energy relief is available for subjects solely concerned with producing heat or power from listed sources including photovoltaics. That points to stand-alone generation sites rather than an office or warehouse with a roof array.
What should you tell the valuer?
For England and Wales, GOV.UK says to use your business rates valuation account to report a change to your property. The VOA's survey for renewable plant asks, among other things, for the installed capacity in kilowatts, the date the scheme was fully commissioned, whether the occupier receives the Feed-in Tariff (or who retains it), and whether the majority of power is consumed on site rather than exported to the network. Keep the commissioning certificate, capacity in kW and generation and export meter records to hand. In Scotland, ask the assessor for your area what it needs.
What happens after March 2035?
All three instruments set the end date and none says what applies after it. A system installed now may still be running then (see the lifespan page), so treat rates from April 2035 as an open risk in a cost model rather than assuming either outcome. VAT is a separate matter, covered on the VAT page. Business rates and capital allowances follow different rules: the capital allowances guide covers the tax relief side, including who claims when the building is leased.
Sources
- legislation.gov.uk: SI 2022/405, regulation 2, regulation 1 and explanatory note, checked 22 October 2026.
- legislation.gov.uk: WSI 2023/1229, regulation 2, regulation 1, checked 22 October 2026.
- legislation.gov.uk: SSI 2023/32, regulation 2, regulation 1 and explanatory note, checked 22 October 2026.
- Valuation Office Agency (GOV.UK): Rating Manual section 5a, power generators, updated 21 September 2026, checked 22 October 2026.
- Valuation Office Agency: Revaluation 2026: everything you need to know, 29 September 2025, checked 22 October 2026.
- GOV.UK: Find a business rates valuation, checked 22 October 2026.
- Scottish Government: Local government finance circular 7/2026, annex A, 25 March 2026, checked 22 October 2026.
- Scottish Government: Decapitalisation rate for the 2026 revaluation: business and regulatory impact assessment, 27 May 2025, checked 22 October 2026.
- Department of Finance (Northern Ireland): Non domestic valuation, checked 22 October 2026.
Common questions
Does a battery count as onsite renewable plant for rates?
The exceptions cover plant used for the generation, storage, transformation or transmission of power where the energy sources are mainly or exclusively renewable, so storage is within the wording. Ask the VOA, or the assessor in Scotland, how it treats a battery on your site before relying on that.
Does the exception apply if a funder owns the array?
The Rating Manual tests turn on whether the majority of power is consumed within the property and on whether power is mainly exported. It gives a third party installing panels on a factory roof, with power wholly or mainly exported, as a case that normally becomes a separate property. If a funder's array supplies the occupier's own demand, ask the VOA how it applies the majority-consumed test to that arrangement.
Do I need to tell the VOA when I install solar?
GOV.UK says to use your business rates valuation account to report a change to your property. The VOA's survey for renewable plant asks for the capacity in kW, the commissioning date, Feed-in Tariff details and whether most power is used on site, so have those ready.
Do these rules apply in Northern Ireland?
No. Land & Property Services values rated properties in Northern Ireland under its own rules, which the Northern Ireland page on this site covers.