Considering the potential scale of solar farms, many neighbouring communities may be impacted by the development and as such it is important that local communities can realise the benefits associated with the project throughout its lifetime through a “community led locality benefit” approach. Developer-led renewable energy infrastructure generation should make a financial or other contribution to the locality, led by the community such as:

• Assigned revenue to the locality at a £/MW installed or £/MWH generated
• Supply of energy generated directly to local communities sold at a discounted rate
• Negotiate a part community ownership model in collaboration with community energy groups
• Community investment through crowdfunding/community share offer, an alternative to the ownership model where residents could invest in and own a share of the solar farm
• Use of retained business rates for the Local Authority, and ring-fenced for community energy-related measures and projects

In discussion with local leaders the expectation would be the opportunity for part community ownership as well as an ongoing community benefit fund that allows residents to actively engage with the development and keep more of the value generated by the development in the local economy. From 2021, as a result of the recommendations made from the Essex Climate Action Commission, it is expected that all large-scale renewable energy developments in Essex should include an element of community ownership. This is likely to be joint ownership between private developers and local communities. Communities will possess a certain level of control in the decision-making process under an ownership agreement with a percentage of shares/site wholly or partly owned by a community organisation. Profits or benefits (examples above) are then distributed back into the community through the community organisation.

The table below extracted from ClimateXChange’s 2014 paper on supporting community investment in commercial renewable energy schemes provides an overview of key characteristics of community investment models along with examples [8]. Further explanation on community part-ownership models is discussed within the paper.

Table 1. Overview of key characteristics of community investment models [9]

Characteristic			Types	Examples
1	Method of raising community finance		Gifted to community	Fintry DT, South African Community Trusts
			Community body	Local development organisations
			Individuals	Co-operatives ('share raises'), crowd-funding ('debentures')
2	Legal Structures	Of project vehicle	Many	SPVs ('Standalone Special Purpose Vehicle'); LLPs ('Limited Liability Partnerships')
		Of community entity	Many	Development Trusts, charities, private limited social enterprises, bona fide co-operatives, community benefit societies
3	Respective roles		Community leads	Neilston, P & L Turbines
			Intermediary leads	Energy4All
			Developer leads	Fintry, Stewart Energy
4	Timing of community investment		Pre-planning	P & L Turbines
			Post-planning	'Energy4All model', Stewart Energy
			Through 'community warrants'	Several in development

[8] Supporting Community Investment in Commercial Renewable Energy Schemes (climatexchange.org.uk)

[9] Supporting Community Investment in Commercial Renewable Energy Schemes (climatexchange.org.uk)

Case Studies

Braydon Manor Farm - The project is an innovative split site scheme, with 5MW in community ownership and 4MW in commercial ownership.

Thrive Renewables - Awards of up to £4,000 available for energy efficiency upgrades in community buildings close to their renewable projects.

Wind Farm community fund in Essex - The Galloper Community Fund is designed to support communities around the location of the Operations & Maintenance Base in Harwich, Essex.