Scotland to cut funds for renewable power and heat

Scotland is to radically revise a rebate scheme for renewable power and heat generation.

The nation’s Renewable Energy Generation Relief Scheme offers rebates on properties owned by producers of power, heat or both from biomass/biofuels, fuel cells, solar photovoltaics (PV), wind, geothermal or hydropower (excluding pumped storage). The scheme has been in place since 2010 and gives rebates from 2.5% to 100% depending on eligibility.

However, from April 2016 the government plans to restrict the scheme to community-owned projects, according to a document sent to local governments and seen by Scottish newspaper The Herald.

The document reportedly said: “The Scottish government proposes to reform renewable energy relief from 1 April 2016. Relief is proposed to be limited to schemes incorporating community ownership. Further detail of the revised relief will be confirmed shortly.”

A spokesman for the Scottish government was quoted as saying: “Now that the sector has reached financial maturity, and given the challenging fiscal environment imposed by the UK government, we are taking steps to target the relief to delivering a benefit to schemes incorporating community ownership.”

The UK has recently cut its support for renewable power projects.

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