Levy Exemption - Unlock Hidden Energy Savings
Claim Relief from the Climate Change Levy (CCL)
Many UK businesses are unknowingly paying more than they should on energy-related levies and taxes. Our Levy Exemption service identifies whether your business qualifies for exemptions or reductions - such as the Climate Change Levy (CCL) and helps you claim it. From initial assessment through application to ongoing compliance, we streamline the process so you can focus on your business while enjoying measurable cost savings.
What is the Climate Change Levy?
The Climate Change Levy is a UK government-imposed tax applied to non-domestic electricity, gas and LPG usage, designed to encourage energy efficiency and carbon reduction.
Whether you’re in manufacturing, hospitality, logistics, or any other energy-intensive sector, our experts bring clarity to a complex landscape ensuring you don’t miss out on potential savings.
Who qualifies for CCL exemption or reduction?
- Exemptions for charities and households when energy use is largely domestic.
- Small business supplies where annual consumption is under specific thresholds (e.g., 12,000 kWh electricity or 52,765 kWh gas.
- Energy-intensive industries eligible for Climate Change Agreements (CCAs), offering discounts of up to 92% on electricity and 89% on gas when targets are met.
- Under a Climate Change Agreement, an individual industrial site commits to monitoring its carbon dioxide emissions and achieving substantial annual reductions. If the site meets its emissions targets, it remains eligible for a reduced CCL (Climate Change Levy) rate.
According to the public register maintained by the Environment Agency, 8,443 UK facilities are currently enrolled in a Climate Change Agreement.
What are the Climate Change Levy Rates?
The following table outlines the Climate Change Levy (CCL) rates effective from 1 April 2024 to 31 March 2026:
- Business Energy Supply: Electricity
Rate (Pence per kWh): 0.775 - Business Energy Supply: Gas
Rate (Pence per kWh): 0.775
Source: Gov.uk – Climate Change Levy Rates
These rates apply to all business energy tariffs including green or renewable supply contracts.
From 1 April 2026, the CCL rate for both electricity and gas is scheduled to increase to 0.801p per kWh.
Although the CCL is designed to encourage reduced energy consumption and lower carbon emissions, the revenue raised is not allocated directly to environmental initiatives. Instead, it is paid into the UK Treasury’s central fund and supports general public expenditure.
How to reduce Climate Change Levy costs
- Enhance energy efficiency: Upgrade to modern, low-consumption technologies such as LED lighting, energy-efficient motors, and smart controls to reduce electricity and gas usage.
- Undertake a commercial energy audit: Assess your site’s current energy performance to pinpoint inefficiencies and highlight areas for measurable savings.
- Adopt on-site renewable generation: Install commercial solar panels or other renewable systems to cut reliance on grid-supplied energy and lower your levy-liable consumption.
- Secure a Climate Change Agreement (CCA): Access substantial CCL reductions by committing to and achieving ongoing emissions and energy-efficiency targets.
Key Regulatory & Compliance Points
- The CCL rates are reviewed periodically: ensure you monitor changes.
- Suppliers must submit returns for CCL and if you are liable you must comply with the HMRC return process.
- If you pursue reliefs/exemptions (e.g., via CCA or small usage relief) you must maintain appropriate records and meet the conditions of the scheme.
- For mixed usage (business + domestic/charity) supplies, percentage apportionment may apply (e.g., if ≥60% domestic/non-business use you may be excluded).
How our Levy Exemption service works
1.Eligibility Assessment and Benchmarking
Make Sense of Complex Regulations
Energy levy exemptions are governed by detailed and evolving regulations. We assess your business operations against the latest criteria to determine if you’re eligible for relief or a reduction. Whether you’re in manufacturing, hospitality, logistics, or any other energy-intensive sector, our experts bring clarity to a complex landscape ensuring you don’t miss out on potential savings.
2. Application & documentation support
We Handle the Hard Work for You
Applying for exemptions can be hard work, time-consuming and filled with red tape. We take the hassle off you with supporting you through every step of the process. From gathering the necessary documentation to completing forms such as PP10 (supporting analysis) or PP11 (claim relief) where relevant, liaising with your energy supplier or HMRC on your behalf. With our porven experience in energy levy exemption, we can help you reduce errors and delays, so your business sees benefits faster.
3. Ongoing Compliance & Audits
Protect Your Exemption Status
Rules and thresholds can change at any time. Our service doesn’t stop once your exemption is secured. We offer ongoing monitoring and compliance reviews to keep your business in line with the latest legislative requirements. That means peace of mind knowing you’re protected from future costs and penalties.
Typical Savings and Business Impact
Although savings vary by industry and consumption, many businesses secure thousands of pounds annually in savings. For example, a mid-sized manufacturing site may reduce its CCL liability by between £5,000 and £20,000 per year through correct relief handling and efficiency improvements.
Why choose Airis Energy Solutions UK for your levy exemption?
- Over 25 years’ experience in commercial energy services and regulatory compliance.
- Dedicated experts in CCL relief, energy-levy management and government incentives.
- Transparent process, fixed-fee pricing and service designed to maximise your savings and maintain your entitlement.
Get Your Free Levy-Relief Consultation
Think you might qualify for an energy levy exemption? Let our team assess your business and show you what’s possible.
Reduce Costs, Not Confidence
Partner with Airis Energy for a stress-free, fully managed approach to levy exemptions.
Frequently Asked Questions
Not necessarily. While energy-intensive users are more likely to qualify, many businesses across sectors are eligible for partial exemptions depending on usage, processes, or product outputs.
The CCL is a government-imposed tax on energy delivered to non-domestic users in the UK. It’s designed to encourage businesses to become more energy efficient and reduce carbon emissions.
Savings vary by business type, energy consumption, and the level of exemption granted. Some businesses can save thousands of pounds annually through proper exemption management.
We’ll keep you informed of any changes and help you act to remain compliant—so your exemption status is protected and your savings continue.
Partner with Airis Energy for a stress-free, fully managed approach to levy exemptions.
Additional Services
Commercial Solar Panels
Harness the power of the sun to reduce your energy costs and carbon footprint. Our commercial solar panel installations are tailored to your business needs, providing clean, renewable energy for years to come.
Commercial LED Lighting
Upgrade your commercial space with energy-efficient LED lighting. We handle everything from design to installation, ensuring a seamless transition to a brighter, more cost-effective lighting system.
Commercial EV Charging
Future-proof your business with our advanced EV charging solutions, supporting the growing demand for electric vehicles among employees and customers.
get in touch
If you wish to talk us directly, you can find our details here. Please note our phones are only answered during standard office hours.
Phone:
01253 283050
Email:
info@airisuk.com
Address:
Unit 2, Peal House, Poulton Industrial Estate, Cocker Avenue, Poulton-le-Fylde, Lancashire, FY6 8JU
