Cash boost pledged for communities hosting clean energy projects

Coastal and rural parts of Britain that host offshore wind, onshore wind or solar farms stand to receive tens of thousands – and in some cases millions – of pounds a year for local amenities under new Government proposals unveiled today.

The plan would make it a legal requirement for renewable energy developers to pay into community benefit funds. Money could be channelled into everything from grassroots football pitches in Welsh seaside towns to transport links and schools in the Scottish Highlands, with local residents deciding how the cash is spent.

Payments would scale with project size, starting in the ‘tens of thousands’ for smaller schemes and rising to ‘millions’ for large-scale developments, the Department for Energy Security and Net Zero confirmed. Shared-ownership models are also on the table, allowing communities to take a direct stake in new infrastructure and recycle profits back into the local economy.

Energy Secretary Ed Miliband commented, “If you live near an offshore wind or solar farm, your local community should benefit from supporting this nationally critical mission.

“The Prime Minister’s mission to become a clean energy superpower is creating good well-paid jobs in these areas, building the infrastructure we need to get energy bills down for working people.

“Our Plan for Change will revitalise Britain’s coastal and rural communities creating community wealth, better facilities and energy security for the country.”

Alongside cutting household energy costs in the long term, ministers argue the scheme will reward areas that shoulder the visual and construction impacts of new generation plants. It follows a promise in the Planning and Infrastructure Bill to give households within 500 metres of new or upgraded transmission lines electricity-bill discounts of up to £2,500 over 10 years.

Today’s consultation asks which technologies should be covered – potentially stretching beyond generation to include energy storage projects – and draws on similar programmes already operating in Ireland, France, Germany, Italy and Spain.

James Robottom, Head of Policy at RenewableUK, added, “Renewable energy developers have a long history of providing a wide range of benefits for local communities, such as community benefit funds which support local initiatives, electricity discounts, employment initiatives and environmental projects.

“We welcome the Government’s consultation and will engage with it to ensure that the benefits received by local communities hosting energy infrastructure are proportionate and continue to meet their needs. Renewable energy developers are good neighbours and remain committed to providing benefits at an appropriate level to enable local communities to thrive all over the country.”