Business rates liabilities are based on the rateable value and the non-domestic rating multiplier set by the Government.
The Valuation Office Agency (VOA) determines the rateable value of the property using three broad methods: a rentals basis; receipts and expenditure (R&E); and a contractor’s basis, that is to say, a building's replacement costs. Rating case law requires that a hierarchy of use is adopted, in the order shown above; i.e. only when a rentals basis is not possible should the valuer adopt R&E, with the contractor’s basis being the method of last resort.
Solar panels are valued using either the R&E method or the contractor’s basis, depending on the circumstances.
Good quality CHP is partially-exempt from rating. The rateable parts are valued using either the R&E method or the contractor’s basis, depending on the circumstances.
In addition, if the solar panels or good quality CHP is a qualifying microgeneration (below 50kW) installation there is a temporary exemption from rating which means new schemes aren't assessed until the next revaluation takes place.
Battery storage technologies are valued using the contractor's basis.