Incentivising energy efficiency through council tax and business rates study

A Government funded research project is underway in East Devon to see if discounts on council tax and business rates might incentivise residents and businesses to improve the energy efficiency of their buildings.

A sample of households and businesses in East Devon are being asked about the people in their homes and buildings and their attitudes to energy efficiency and renewable energy.

Councillor Ian Thomas, East Devon District Council’s portfolio holder for finance and chair of Exeter and East Devon Enterprise Zone board said:

As part of our work on Climate Emergency we are striving to be innovative.  This Government funded study allows us to work with residents and businesses to explore whether council tax and business rate incentives would drive improvements in the energy efficiency of properties in the district.

Research is being carried out in partnership with the Centre for Energy and Environment at the University of Exeter.

Tony Norton, head of the Centre said:

The Centre is working with a range of public sector partners responding to the climate emergency. Homes in the UK represent 13% of carbon emissions, and commercial/non-domestic buildings account for a further 12%.  Improving the energy efficiency of existing buildings is therefore essential to address climate change. This study exploring the use of financial incentives is an example of the kind of measures being considered. The survey is an important part of our research.

The results of the survey will be analysed and summarised in a report due to be published in the spring. If the evidence supports the use of council tax and business rates to increase the uptake of energy efficiency measures there is potential to develop a pilot scheme to test the concept in practice.