Do care homes pay business rates? What solar changes

Do care homes pay business rates? Many do: gov.uk says business rates are charged on most non-domestic properties, and a care home that is rated as one pays them. Not every address is, so check yours before relying on anything below. What solar changes is narrower: in England, the panels and the plant that goes with them are left out of the rateable value from 1 April 2022 to 31 March 2035, so installing solar should not raise your rates bill. Facts on this page were checked on 20 October and 2 November 2026 and each carries its source.

Do care homes pay business rates?

gov.uk says business rates are charged on most non-domestic properties, and that charities can get up to 80% off on property used for charitable purposes, with councils able to offer more relief. Whether your home is on the rating list is a matter of fact about the property, not a rule for the whole sector. The Valuation Office Agency's Find a business rates valuation service on gov.uk shows whether an address has a rateable value and what it is.

Council tax or business rates?

Some care addresses are charged council tax rather than business rates. Buckinghamshire Council's guidance on care homes says that where council tax applies, the liability usually falls on the owner or provider of the care home, not on the residents. That is one council's published position; other councils may word it differently, so ask yours. Which of the two applies decides whether the English solar rule below matters to you: it concerns non-domestic rates only.

What the English rule says

The Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022 (SI 2022/405) implement an exemption from non-domestic rates for plant and machinery used in connection with renewable generation. The explanatory memorandum says the exemption applies from 1 April 2022 until 31 March 2035. It was first announced at Autumn Budget 2021 for April 2023, and the Chancellor brought it forward a year at the Spring Statement on 23 March 2022. The territorial application is England.

To size an array against your own usage, use the per-bed energy calculator.

The Valuation Office Agency applies the rule, so there is no separate application form for the exemption itself. If your bill or rateable value rises after an install, that is the point to check the assessment, below.

What it does not do

• It does not exempt the care home. The premises stay rateable; only the renewable generation plant is left out of the valuation.
• It is not a rule for the other nations. These regulations apply to England, and each nation has its own rule. Scotland: plant on non-domestic property used to generate or store power from wholly or mainly renewable sources, including batteries, is excluded from valuation from 1 April 2023 to 31 March 2035 (SSI 2023/32). Wales: plant used to generate or store power from listed renewable sources, including photovoltaics, is excepted from valuation from 1 April 2024 until 31 March 2035 (SI 2023/1229). Northern Ireland: generating plant up to 50 kW is not rateable and larger plant is (Rates (Microgeneration) Order (NI) 2012; Land & Property Services practice notes). Confirm the position for your site with your valuation office (the Valuation Office Agency in Wales, your local assessor in Scotland, Land & Property Services in Northern Ireland).
• It should not be assumed to cover batteries or EV charging. The explanatory memorandum names plant used for renewable generation, and storage at electric vehicle charging points. Ask the valuation office about a standalone battery before you rely on it.
• It has an end date. The regulations run to 31 March 2035. We do not know whether the exemption will be extended, so model the cash flow with and without it for the years after.

If your rateable value or bill rises after an install

gov.uk's guidance is that you ask your council about questions on your bill and contact the Valuation Office if you think the rateable value is wrong. In practice:

1. Ask your council or the Valuation Office what the assessment contains. Check whether solar PV or its plant has been added to the rateable value.
2. If it has, challenge it with the Valuation Office. Reference SI 2022/405 and give the system size in kWp, the installation date and the installer's commissioning paperwork.
3. Keep the paperwork. The commissioning certificate and the installer's invoice are the evidence the Valuation Office will ask for.

Charity-owned and other care homes

Business rates relief can be available to some care providers, for example charities, and gov.uk says councils may offer relief, sometimes automatically and sometimes on application. Check with your council what applies to your premises. The solar rule sits alongside any relief you already receive: it concerns the solar plant, not the home.

Claims on this page

Claim	Value	Source	Read
Exemption for plant and machinery used for renewable generation	1 April 2022 to 31 March 2035, England	SI 2022/405 explanatory memorandum, legislation.gov.uk	20 Oct 2026
Announced at Autumn Budget 2021, brought forward at the Spring Statement 2022	23 March 2022 announcement	same memorandum, paragraphs 3.2 and 3.3	20 Oct 2026
Business rates charged on most non-domestic properties	England and Wales; Scotland and Northern Ireland separate	gov.uk, Introduction to business rates	20 Oct 2026
Charities can get up to 80% off business rates on property used for charitable purposes	Councils may offer more relief	gov.uk, Charitable rate relief	2 Nov 2026
Where council tax applies to a care home, liability usually falls on the owner or provider	One council's guidance; others may differ	Buckinghamshire Council, council tax and care homes	2 Nov 2026

We have not verified any size cap, any equivalent relief in Wales, Scotland or Northern Ireland, or any pound-per-kilowatt saving, so none is stated.

How this fits the rest of the funding picture

The English rates rule is one of several reliefs that sit alongside the capital route you choose: the Annual Investment Allowance and the 50% first-year allowance on the tax side, 0% VAT on the installation to 31 March 2027, and the Smart Export Guarantee on the surplus. The grants and funding guide compares them with the dates checked, and the capital allowances guide covers the tax side in detail. To see which apply to your home, use the funding checker on the grants page.