The Welsh Government is committed to decarbonisation and net-zero goals. Heat networks relief has been introduced to help support the growth in the low-carbon area of this sector that is anticipated over the next decade.
Heat networks supply thermal energy from a central source to consumers, through a network of pipes. They vary considerably in their scale and use, from a common heating system in a building with multiple occupiers, to large standalone networks providing heat or power to many customers and buildings across a large area.
The Welsh Government is providing full (100%) relief to non-domestic hereditaments which are used wholly or mainly as a heat network and supply thermal energy generated from low-carbon sources. These conditions are set out and defined in the Non-Domestic Rating (Heat Networks Relief) (Wales) Regulations 2024, and are explained in more detail in this guidance.The relief is intended to support the development and growth of this sector, by helping to minimise the financial barriers to the establishment of networks. This is intended to help support the transition away from the use of fossil fuels and the decarbonisation of heat.The relief is in place from 1 April 2024 and will be available up to and including 31 March 2035.
For further information please see Welsh Government Guidance here: Non-Domestic Rates – Heat Networks Relief | Business Wales (gov.wales)