Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure

Overview

The Clean Energy Superpower Mission is crucial for economic growth, energy security and reducing electricity bills. By rapidly adopting clean, homegrown energy, Great Britain can control its energy supply and protect both household and national finances from fossil fuel price spikes with cleaner, affordable power. Achieving our goal of becoming a clean energy superpower and achieving net zero by 2050 will require the rapid deployment of new low carbon energy capacity. This means that some communities will see an increase in energy infrastructure being built in their area, such as onshore wind and solar, making them vital players in achieving net zero and energy security.

Cross-technology Community Benefits

Communities should feel tangible and enduring benefit from their role in creating a low-cost, clean energy system. Community benefits are already delivered on a voluntary basis in some energy sectors across Great Britain (such as nuclear, solar, offshore and onshore wind), but this is not consistent across sectors and locations. That is why this government is considering mandating the provision of community benefit funds for low carbon energy infrastructure. This would create a level playing field across developers and communities, ensuring consistency and fairness in application. The Scottish and Welsh Governments likewise believe that all communities must see tangible and long-lasting benefits and we will work together to deliver this for communities.

Community benefits can include both monetary (in-cash) and non-monetary (in-kind) contributions that improve the local economy, society, and environment. For example, community benefits could include funding to support community projects, funding to support community priorities such as local tourism, education and skills development opportunities, or in-kind benefits, such as direct investment in local infrastructure or donation of equipment. They are additional to the intrinsic benefits that come from development and construction, such as local employment opportunities.

Provision of flexible community benefit funds that can be tailored to local context and preferences could maximise the impact of community benefit packages, helping to ensure a lasting legacy that reaches a wide pool of beneficiaries. If a decision is taken to mandate, the government would expect developers[1] to work with local people to deliver the types of community benefits best suited to their individual circumstances, rather than to apply a one-size-fits-all approach.

In order to implement a mandatory scheme, primary legislation would be required to grant powers to create new regulations relating to a mandated community benefit fund scheme. The purpose of this Working Paper is to seek views on whether mandating is the right approach and if so, to inform the design of our policy proposals.

These initial proposals for community benefit funds are distinct from the bill discounts scheme for transmission infrastructure that was introduced in the Planning and Infrastructure Bill on 11 March 2025[2].

It is critical the planning process remains a robust system through which communities can continue to have a say on any proposals in their area. That is why community benefits are legally immaterial to planning decisions and cannot be considered when deciding whether to grant planning consent.

Community benefits are also not compensation for any perceived negative impacts. Where developers consider it appropriate to provide individual compensation for a development, this arrangement should be agreed between the relevant parties and would be separate from any potential community benefit proposals.

Shared Ownership

Shared ownership of energy infrastructure has the potential to help us achieve the Clean Energy Superpower Mission, for example, by delivering financial, social and economic value to communities. It is not currently commonplace for it to be offered to communities in England; however, the Scottish and Welsh Governments encourage developers to voluntarily offer shared ownership opportunities to communities as standard on all renewable energy projects.

The Infrastructure Act 2015 (“the 2015 Act”) includes provisions enabling the Secretary of State to make regulations which would give local communities the right to buy a stake in a renewable electricity generating station located in their community (“the community electricity right”). The objective of the community electricity right was to provide an alternative route to increasing shared ownership, only to be used if a voluntary approach failed to deliver. The Act includes a requirement for the Government to undertake a review of the success of the voluntary approach to shared ownership. This paper will inform this review.

It is unclear to what extent the current voluntary approach to shared ownership across Great Britain has encouraged developers and communities to engage with models of shared ownership. This Working Paper and subsequent review will help the UK Government to determine its policy position on shared ownership. 

The purpose of this Working Paper is therefore to gather evidence about how successful the existing voluntary approach to shared ownership of energy infrastructure has been in Great Britain. In doing so, this paper will consider the current support offer available to communities and developers across England, Scotland and Wales, and international examples of shared ownership schemes. It seeks views on current barriers to shared ownership in Great Britain and potential solutions to overcoming them and facilitating the further uptake of shared ownership models. This Working Paper also seeks views on whether the powers included in the 2015 Act should be exercised to establish a mandatory approach to shared ownership or whether it is more appropriate to continue with a voluntary approach.

Why your views matter

This working paper seeks to collect insights and evidence from industry and stakeholders regarding the feasibility of mandating community benefits and expanding shared ownership models for low carbon energy infrastructure.