The Climate Change Levy (CCL) Exemption is now closed for renewables. Renewable electricity generated from 1 August 2015 will not be eligible to receive Levy Exemption Certificates (LECs). If you commissioned on or after this date you should not apply. Please see our CCL exemption removed FAQs for more details.
About the scheme
The CCL is a tax on UK business energy use, charged at the time of supply. Energy use refers to electricity, gas, liquid petroleum gas and solid fuel. The final recipient of supplies of electricity generated from certain renewable sources and combined heat and power (CHP) can obtain a tax exemption for generation before 1 August 2015.
We’re responsible for administering the CCL exemption for renewables on behalf of HM Revenue & Customs (HMRC). We administer a certification scheme which provides evidence for the administration of two tax exemptions:
- the exemption for renewable source electricity with effect from April 2001
- the exemption for indirect supplies of good quality combined heat and power (CHP) electricity with effect from April 2003.
LECs provide suppliers with some of the evidence needed to demonstrate to HMRC that electricity supplied to UK business customers is CCL exempt. The final customer realises the exemption from the tax. The tax rate for electricity is set within the Finance Bill each year as part of the Budget. This information is also published on the HMRC website.
Arrangements for Ireland and Northern Ireland
The Northern Ireland Authority for Utility Regulation administers the exemptions for generation and supply made in Northern Ireland and the Republic of Ireland.
Still need help?
If you have any questions relating to the CCL exemptions that you’re not able to find the answer to on this site, please contact the CCL and REGO team on 020 7901 7310 (Option 3) or CCLandREGO@ofgem.gov.uk.