The Scottish Government has announced a package of reliefs for renewable energy.
It includes a 12.5% cap on business rate increases for small-scale hydropower projects – up to 1MW – and a new 50% relief for district heating schemes.
It is also rolling forward current rates relief of up to 100% for qualifying community renewable projects and new build schemes.
The eligibility threshold related to community profit share schemes is being lowered from 1MW to 0.5MW.
The announcement is part of a wider package of measures, expected to benefit more than 9,500 businesses across Scotland.
The 12.5% limit will also apply to more than 1,000 office premises in Aberdeen and Aberdeenshire.
Scottish Finance Secretary Derek Mackay said: “I have listened carefully to the renewable energy sector, where the cuts to subsidies by the UK Government puts their continued development at risk.”
He added: “Although councils retain all the revenues from business rates and have the power to offer rate reductions, it has become clear that there are some sectors and regions where the increase in rateable value is out of kilter with the wider picture of the revaluation. I have listened and decided that we will act nationally to tackle the impact.”