The renewable energy sector is bracing for significant changes as the 2026 Rating List for England and Wales and the Valuation Roll for Scotland come into effect on 1 April 2026. Draft assessments published in November reveal steep rises in rateable values (RVs) for many renewable energy assets with subsidised sites in England and Wales being most affected, making this one of the most impacted sectors in the upcoming revaluation cycle.
Headline figures
The Valuation Office Agency (VOA) and Scottish Assessors Association (SAA) revalue non-domestic property every three years to redistribute the tax burden between sectors. RVs reflect an estimated annual rental value at the valuation date: 1 April 2024 (England and Wales) and 1 April 2025 (Scotland). Draft RVs, which were published by Government in November 2025, reflect economic conditions at those dates.
Across England and Wales, renewables are seeing an average RV increase of 38%, far outpacing other key property sectors such as industrial (21%), offices (14%) and retail (10%). Within renewables, the picture is even more striking:
- Solar PV (England & Wales): up 51%
- Onshore Wind (England & Wales): up 38%
- Hydro (England & Wales): up 15%
- Hydro (Scotland): up 22%
- Onshore Wind (Scotland): up 4%
- Solar PV (Scotland): 0%
These figures underline the scale of the challenge for operators, particularly those with subsidised sites in England and Wales, which are seeing the largest increases.
What is driving this uplift?
The valuation approach varies by technology and jurisdiction, but two main factors are driving these uplifts. Profits-based valuations, which apply to solar, wind and hydro in England and Wales and to hydro in Scotland, have surged due to higher wholesale price projections at the valuation date, Retail Price Index (RPI)-linked subsidies, and elevated Renewable Energy Guarantees of Origin (REGOs). In contrast, increases in cost-based valuations, used for solar in Scotland, reflect construction cost inflation, though changes are modest compared to those seen under profits-based methods.
Technology breakdown
Solar PV sites in England and Wales are hardest hit, with subsidised projects facing RV increases of 45–55%, while subsidy-free sites average around 34%. In Scotland, where solar is valued on a cost basis, changes are negligible.
Onshore Wind England and Wales will see average uplifts of 38%, though individual RVs vary depending on load factor performance. Scotland’s hybrid valuation method limits increases to around 4–5%.
Hydro projects in Scotland face an average 22% rise, but some sites could see uplifts of 50–65%, reflecting strong trading performance at the valuation date. England and Wales show a more moderate 15% increase, though variation remains significant. There is currently a case sitting at Upper Tier Tribunal for Scotland for micro hydros, which could consequently have a material impact on the valuation of large hydros as it calls to dispute the rateable and non-rateable split, thus providing further uncertainty for hydro operators.[1]
What does this mean for operators?
While transitional relief in England will cap first-year increases at 25%, the overall trend is clear: renewables face the steepest RV hikes of any sector. These changes risk eroding the financial benefits of subsidies and could deter investment in emerging technologies, particularly where cost-based methods penalise high upfront capital expenditure.
Government policy aims to encourage green energy investment, yet these revaluation outcomes tell a different story. Operators should be urged to review draft RVs and prepare for appeals where increases are substantial. With transitional schemes expected in Wales and Scotland early next year, and ongoing uncertainty around valuation methods, proactive planning is essential.
Using Newmark’s detailed research and bespoke business rates forecasting system, we are currently helping clients forecast their rate liabilities on the 2026 List and reviewing draft RVs in advance of the 2026 Revaluation coming into effect.
[1] Row over business rates for Scottish hydro schemes heads to court after 10 year battle
