News

2010-11-09 : Cash Incentives for Green Projects

In a bid to support renewable energy, ministers are introducing a Renewable Energy Bonus which will mean that local authorities can keep the business rates from renewable energy projects.

It is proposed that the money which is usually passed onto central government will be kept in-house with no pre conditions on how it is spent. A small wind farm operating five turbines pays business rates of approximately £37,000 a year. If the district has three or more sites, the retained funds could rise to a six figure sum.

Some councils have said they will not be influenced by the money and that all planning applications will be assessed on their own merits. Many wind farm operators currently offer cash incentives to local communities and set up grants in areas where they operate a wind farm. However, this is done outside the planning process and does not affect the decision of the planning authority.

North East Lincolnshire Council has welcomed the announcement. With wind, biofuel and carbon capture all classed as green projects and all focused in this region, the funding could mean a major boost for vital services.

Although the new proposal will benefit the region, business rates for renewable projects should still be investigated by a Specialist Rating Agent. Ruddle Merz have not only reduced the business rate liability for many energy clients, but also provide consultation services for new projects. Contact us on 0800 883 0353 or email enquiries@ruddlemerz.co.uk.