Council Seeks Greater Community Benefits as Energy Projects Expand

Published on 16 July 2025

Horsham Rural City Council (HRCC) is calling for changes to the Payment in Lieu of Rates (PILOR) Scheme, which if approved will allow energy storage systems to pay lower rates than local businesses. With the rapid expansion of renewable energy projects, including the State Electricity Commission’s (SEC) Horsham Energy Park, Council believes it's time for a fairer system that benefits the community.

The Department of Energy, Environment and Climate Action (DEECA) is seeking feedback on proposed amendments to the PILOR Scheme, which enables energy projects and electricity generators to negotiate payments to councils instead of paying property rates. HRCC asserts that the discounted rates for energy projects are unfair to local businesses.

As a key municipality hosting renewable energy projects, HRCC is committed to ensuring that this delivers real benefits to local communities. The increasing number of energy storage systems, such as large-scale batteries, presents an opportunity for local economic and community growth—but the current PILOR framework falls short of achieving this.

Council advocates for energy storage systems to be charged the same rates as other industrial facilities. This would ensure that local communities share in the benefits of the renewable energy transition, including better funding for services and infrastructure.

Mayor Cr Ian Ross said “The Government is reviewing how energy storage projects are rated, but we believe a full overhaul is needed. These projects should pay their fair share, just like any other business. The current system gives them huge discounts, leaving local businesses to pick up the slack. It’s time for a fairer deal.”

HRCC is calling for a consistent rating approach where energy storage systems are taxed based on the industrial value of the land they occupy. This would provide certainty for developers while ensuring communities benefit more from these large-scale energy projects.

“These facilities occupy vast amounts of land and play a significant role in the state's energy infrastructure. They should be treated the same as any other industrial development and pay rates based on the capital improved value of the land,” Cr Ross added.

“The renewable energy industry is growing rapidly, and its importance to our future energy needs cannot be overstated. However, it’s crucial that this growth doesn’t come at the expense of the communities hosting these projects. The State must revise the PILOR framework to ensure energy projects contribute fairly to the local economy and community” said Cr Ross.

As HRCC continues to engage with DEECA and other stakeholders, it is hopeful that these changes will lead to a fairer, more transparent system that supports both industry and local communities.