Guidance

Community benefits guidance for onshore wind in England: resource kit (accessible webpage)

Updated 4 July 2025

Applies to England

© Crown copyright 2025

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/community-benefits-and-engagement-guidance-for-onshore-wind/community-benefits-guidance-for-onshore-wind-in-england-resource-kit-accessible-webpage

How to Use the Resource Kit

The toolkit complements the community benefits guidance. Its aim is to help and inspire developers and host communities in their endeavour to configure a long-term relationship that best suits local circumstances.

The toolkit comprises five sections that broadly mirror the process of setting up a community benefits scheme. To support you through your journey, each section provides useful information in the form of:

  • Case Studies: Examples of successfully implemented schemes that illustrate the various benefits outlined in the guidance.
  • Community Action Plan: A step-by-step guide to developing a strategic development plan for a community.
  • Guidelines for Applicants: Suggested criteria for determining the rules for releasing funds to community project applicants.
  • Community Benefits Agreement: A template with suggested legal clauses for a community benefits agreement.

Figure 1: How to use the resource kit (text-only version)

  • Case studies - brainstorm ideas for themes and activities
  • Community Action Plan - consult and design actions
  • Guidelines for Applicants - define rules for action delivery
  • Community Benefits Agreement - set the legal foundations for the partnership

Section 1: Community Benefits Case Studies

The case studies below are working examples of the different types of benefit schemes that are available to communities. Without being exhaustive, these give an idea of the breadth of possible outcomes from community benefits consultations. Case studies described in the following pages are aimed to illustrate the work of community funds in more detail. For further details on setting up different types of community benefits options please refer to the main guidance document.

Case Study 1: Community Benefit Fund (In-Cash)

Brechfa Forest Wind Farm Community Fund, Wales

  • Installed Capacity: 57.4 MW
  • Annual Budget: £459,200
  • Inflation Index Linking: Each year in line with inflation (CPI)

Management Form: Day-to-day business is administered by the local enterprise agency Antur Cymru. Decisions on the allocation of funds are made by a grants panel of volunteers living in the area, bringing different skills and experiences. Community councils are not represented on the panel but are involved in the delivery of projects.

History: Developed by Innogy Renewables UK Ltd; Operated by RWE since 2018

What have the funds been spent on to date

During the first five years (2018-2023) 248 grants worth £2.2m were awarded. The fund is based on the industry best practice of an index-linked £5,000/MW for community benefit payments.

As part of the tendering process for the Forestry Commission, the Wind Farm also contributes an additional £3,000/MW specifically to support projects delivering economic development.

The amounts are index linked and increase on an annual basis. Future plans include ringfencing part of the annual payments to invest in projects that deliver local social benefits as well as creating an income stream that will be available after the 25-year lifecycle of the windfarm.

The fund invests about £25,000 each year in consultancy to help applicants to overcome barriers, improve their project applications and identify match funding opportunities. Often the fund engages with projects over several years.

This mentorship approach has ensured high quality and increased impact of projects on the community. Funded projects included activities supporting:

  • education and training;
  • community cohesion;
  • health and wellbeing;
  • tourism;
  • vulnerable peoples;
  • local services;
  • art, culture and heritage;
  • environment and climate action.

The fund awarded grants to:

  • A school community project enabling six primary schools to plan collaboratively learning opportunities out in the community including outdoor training, learning and wellbeing programmes.
  • An intergenerational training programme as well as a children’s education and development programme.
  • A parenting skills programme to improve children’s chances of a secure and happy childhood.
  • The Family Foundation supporting individuals to improve their prospects with guidance on CV writing, interview coaching, job searches and cost of living support.
  • Pay for a Nissan ENV 200 5 seat fully accessible car plus £500 for charging points and staffing costs for a development officer for 6 years for the Brechfa Electric Vehicle (EV) car club.
  • Purchase of a bunkhouse to provide a longterm income stream for the local hospice.
  • Several community building updates: Solar PV systems, battery storage, LED lighting.
  • A community owned leisure centre towards staffing costs and to install renewables.
  • 3 lunch clubs, each benefitting 50‑55 community members, offering subsidised meals.

Case Study 2: Community Benefits as Frontloaded Investment

Tirgwynt Wind Farms, Wales

  • Installed Capacity: 24 MW
  • Budget: £500,000
  • Inflation Index Linking: N/A

Management Form : Carno Community Trust Fund donated to the Carno Recreation Association

History: Developed by West Coast Energy Ltd; Operated by Belltown since 2017

The Tirgwynt landowners were integral in the development of the project and continue to farm the land around the development. Together with by Belltown Power they jointly funded the development of this project and continue to have an active ongoing involvement in its operation.

Following extensive community engagement, the developer agreed to respond to the wishes of the Carno community and front load the Carno community benefits funding. It enabled the community to fund a new school building and saved the school from closure.

Funding for the project is a 50/50 split between Powys County Council and the Welsh Government’s 21st Century Schools programme, with a £500,000 contribution from Carno Recreation Association, donated by the Carno Community Trust Fund.

Tirgwynt windfarm holds an annual visit for local school children where they participate in workshops, familiarise themselves with the technology and gain an understanding of climate change.

The wind farm also awards an annual grant to the host community Dwyriw and the other communities along the turbine delivery route. These funds are managed by the Dwyriw Community Trust Fund and The Tirgwynt Community Fund.

Case Study 3: Local Electricity Bill Discounts

Tallentire Wind Farm, England

  • Installed Capacity: 12 MW
  • Annual Budget: £60,000 (split between a £2,000 per MW community fund and a £3,000 per MW Local Electricity Discount Scheme (LEDS))
  • Inflation Index Linking: Each year in line with inflation (CPI)

Management Form: RES manages the local electricity discount scheme, Cumbria Community Foundation administers the community benefit fund (£24,000 p/a).

History: Developed by RES and now owned by The Renewables Infrastructure Group (TRIG); Operated by RES since 2013

RES was the first company to introduce a scheme that delivers direct benefits to households through their Local Electricity Discount Scheme (LEDS) in 2013. RES now manages LEDS at 30 participating operational wind and solar farms in the UK. In total 30,000 payments have been made to properties, delivering more than £6 million in direct benefit to households. LEDS payments are made directly to the electricity supplier of the household, to ensure that the money is used for its intended purpose.

Participation in the scheme is voluntary and is not linked to any particular supplier or tariff, with special arrangements made for any qualifying properties using electricity pre-payment meters to provide energy credit vouchers or top-ups (as applicable).

Tallentire Wind Farm (12MW), The Renewables Infrastructure Group (TRIG), England:

Tallentire Wind Farm is a 12MW project in Cumbria, England. The project is owned by TRIG and operated by RES. The project delivers direct community benefits to the local community via LEDS for properties within 2km of the turbines.

The annual discount is index-linked annually. In 2024, eligible properties benefitted from a discount of £145. The project also provides a community benefit fund of £24,000 per year, totalling a community benefit package worth around £60,000 per year. LEDS was launched for Tallentire in May 2013, and provided its first payments directly to households in 2014, once the wind farm was fully operational. Any surplus LEDS funds are used to increase the annual community fund contribution.

Case Study 4: Shared Ownership

Crossdykes Wind Farm, Scotland

  • Installed Capacity: 46 MW
  • Annual Community Investment Fund: £322,000 (£7,000 per MW each year)
    The Community Investment Fund is payable for the lifetime of the project, regardless of whether the Shared Ownership offer is taken up or not
  • Inflation Index Linking: Each year in line with inflation (CPI)

Management Form: Administered by Foundation Scotland on behalf of Crossdykes Community Benefits Ltd. CCBL is a Company Limited by Guarantee (CLG)1 with Charitable status and comprises a Board containing two members from each of the five host community councils of North Milk, Eskdalemuir, Middlebie & Waterbeck, Langholm, Ewes & Westerkirk and Lockerbie & District. CCBL receives the community investment fund directly from Crossdykes Wind Farm.

History: Developed and since 2021 operated by Muirhall; Since 2022 operated by Octopus

Muirhall’s Shared Ownership Scheme was drafted on behalf of the company and then tailored to align with community needs and financial capacity. This process involved Dumfriesshire East Community Benefit Group (DECBG) and the host communities. DECBG applied to Community and Renewable Energy Scheme (CARES), which is managed by Local Energy Scotland, for funding to employ experts to advise communities on the financial and legal aspects of the proposal. Muirhall cannot give legal and finance advice to communities and therefore it was essential for them to obtain independent expert opinion to assist in overcoming initial hurdles, including securing investment capital.

The original proposal described the uptake of 10% offered shareholding using a loan from the Energy Investment Fund (Scottish Government Fund) which was to be repaid using revenue from the shareholding over a period of about 17 years before significant revenue would come to the communities. However, meeting the financial criteria required by EIF proved onerous and that option was abandoned.

The Muirhall Shared Ownership Scheme

An alternative proposal from Muirhall involved the communities opting for a 5% shareholding, using part of the community benefit funds to pay back the loan in about 7 years. In order for the community to realise as much benefit from the purchase as possible, the shares were offered at a specially reduced rate. The five involved councils agreed to accept this proposal as the revenue stream would become available for community use on a much shorter timeframe. The loan was eventually facilitated by Muirhall, at a very competitive interest rate, as the company was determined to break ground for a new innovative shared ownership scheme.

Subsequently, Crossdykes Community Benefits Limited (CCBL) and Crossdykes Community Service Limited (CCSL) were created. CCSL (a Company Limited by Shares) is a wholly owned trading subsidiary of CCBL. Its purpose is to hold the shares in the wind farm on behalf of the community and have responsibility for the funding loan. [footnote 1]

In 2022, Muirhall decided to sell Crossdykes Wind Farm. The majority of shares is currently owned by Octopus Renewables Infrastructure Trust (ORIT). Although the communities had the option to keep their shares and partner with the new owner, they decided it was in their best interests at that time to sell [footnote 2]. The community subsequently received a significant sum from the sale of its stake in the wind farm. This allowed them to pay off the loan immediately while making a seven-figure profit, which they could potentially use to invest in other local developments and shared ownership opportunities.

It is hoped that as this model has now been shown to work successfully, that more lenders will be confident enough to enter into loan agreements to help communities secure shared ownership opportunities in onshore wind farms.

The Crossdykes’ turbines have been named by members of the community, with school pupils from Applegarth and Hutton Primaries and Lockerbie care-home residents all submitting imaginative suggestions.

Figure 2 (text version): The administrative structure of the Muirhall Shared Ownership Model

  • Each community council elects 2 representatives to be board members in the company limited by guarantee
  • Crossdykes Community Benefits Limited (a company limited by guarantee) - funded by the Crossdykes Community Investment Fund
  • has a 5% share ownership in Crossdykes Wind Farm Limited - a loan fund assisted with purchase of shares in Crossdykes Wind Farm

Section 2: Community Action Plan

Introducing Community Action Plans

What is a community action plan?

A Community Action Plan (CAP) lays out the strategic vision developed by local communities to outline their priorities and actions for improving their area.

A CAP usually comprises:

  • Community Needs Assessment: Identifying the needs and resources within the community.
  • Goals and Objectives: Setting clear, achievable goals based on the community’s priorities.
  • Action Steps: Detailing the specific actions required to meet these goals, including who will be responsible and the resources needed.
  • Implementation Timeline: Establishing a timeline for when each action will be completed.
  • Evaluation and Monitoring: Setting up a system to track progress and make adjustments as needed.

Why is it important?

  • Having a CAP available is crucial for aligning focus and effectively addressing community needs when designing the community benefits scheme.
  • Identifying the what, who, how, and when of actions, it organises development goals around resources (funding, skills, time). This, in turn, is important to realise the community’s social and economic development potential.

Who is being consulted?

  • Creating a CAP should engage all important stakeholders of a community. As the CAP is based on community consultation it has democratic foundations, contributing to community building as well as building broad community support for local development projects.
  • Community members engage in consultations to address local needs and goals. They also provide input on the activities that implement these goals and help set priorities for the plan. Additionally, they may be consulted on the preferred management model used to implement the plan.

How does the CAP consultation differ from other consultation types?

Table 1: Consultation types

Type Project Stage Owner Product
Community Action Plan Consultation (CAP) Independent from any project planning or in preparation of the community benefits consultations Community with optional support from developer Local infrastructure strategy
Community Engagement Plan Project planning; early stage of project development Developer Risks and opportunity assessment of how, when, and on what, relevant stakeholders should be engaged.
Pre-Planning Consultation (PAC) Project planning; conducted before submitting a planning application Developer PAC-report: Legislative requirement. Seeking early stakeholder views to help improve project design and address concerns.
Public Consultation Project application; part of a planning application process Local Planning Authority Seeking views on the project from the local community and interested stakeholders.
Community Benefits Consultation Variable, though conversations often begin earlier in the development process Developer and host community Examining community needs and identifying priorities for community benefits informing the community benefits agreement.

Who conducts the CAP consultations?

  • Consultations for the CAP are typically conducted separately from those for community benefits.
  • Ideally, a CAP or any other strategic development plan should be developed before any infrastructure project planning begins. However, in the absence of such a plan, developers should consider initiating CAP consultations to identify community needs before starting community benefits consultations. In such cases, arranging CAP and community benefits consultations as a series of engagement events is recommended.
  • Third-party organizations with the necessary expertise can conduct these consultations. This ensures a high level of professionalism and impartiality in the community consultations.

What does it cost?

Costs range from £10,000 to over £30,000. Communities should explore available funding sources. In some cases, developers may agree to cover the costs of the CAP consultation, particularly when they are conducted alongside community benefits consultations.

Who designs the CAP?

The draft of a CAP resulting from the consultation will be prepared by volunteers, a designated committee, or a third party in close collaboration with the community representatives.

How to consult and design a community action plan

To develop a CAP, resources to consult a representative mass of community stakeholders and to draft the plan are needed. In some cases, developers assist with this work providing their expertise and communication infrastructure.

Figure 3 (text version): From community context to designing an action plan

  1. Understanding the Context

  2. Collect Data and Consult the Community

  3. Identifying Options

  4. Draft Preparation

  5. Designing and Drafting the Community Plan

The aim of this consultation is to examine the infrastructure development needs of the host‑community considering its commercial, socio-economic, and demographic context. Such consultation is most beneficial when conducted before the community benefits scheme is being discussed. If necessary, to better account for changing circumstances it can be repeated at a later stage.

Stage 1. Understanding the context

  • Who is going to benefit from actions?
  • What are the boundaries of the community?
  • Who is living and working in the community?
    • Local economy
    • Local activity and interest groups (i.e. energy groups, religious groups)
    • Demographic groups (e.g. age, gender, ethnicity etc)
  • Are there existing community action groups addressing community needs and issues?
  • Which regulations need to be considered when planning for actions?

Stage 2. Collect data and consult the community

Conduct consultation applying appropriate methods:

  • inaugural meeting
  • stakeholder summit: breaking the ice, introducing stakeholders, presenting options for community actions and development, gathering views
  • online methods: email, webinars, deep dives, thematic forums, collaborative blogs
  • offline methods: group discussions, online surveys, focus groups, workshops, co-design sessions examining options for themes and actions

Review and analyse community information:

  • public statistics
  • local development plan
  • geographical nature of the development landscape (for example a map of significant land use and social hubs)

Review and analyse feedback from community consultation: to ensure all groups feel included and an optimal consensus is found, particular attention should be paid to voices of marginalised groups.

Stage 3. Identifying options

  • Which themes might be relevant for the development of a CAP? - see mind map
  • Who are the benefiting groups in the community?
  • What type of impact does the community aim for?
    - Building community and social capacity: Helping the community to share knowledge, skills and ideas
    - Community resilience: Helping the community to support itself
    - Prevention: a focus on early access to services or support, engagement in infrastructure design, cross-sector collaboration and partnerships
  • What type of action is appropriate for the chosen type of impact?
    - Social action: people collaborating to form networks of volunteer groups that support others, address issues, or enhance their local community
    - Infrastructure improvements and enablers: infrastructure improvements involve upgrading physical structures like road, utilities, and public buildings to support community development. Enablers are the tools and resources that ensure these upgrades are effectively implemented and maintained.
  • What are priorities and how can they be established and justified?

Mind map (text version): Key themes for developing a CAP

Identifying the options. Which themes might be relevant for the development of a CAP:

Theme - Nature and gardens:

  • green care networks: sensory gardens, nature space, rebel gardening
  • allotments, compost loos
  • environment and outdoor
  • green tourism
  • green homes

Theme - Climate adaptation:

  • water management: drainage, water treatment, rainwater harvesting, natural flood management
  • retrofit adaptation: insulation and draught proofing, heating and cooling, green roofing
  • overheating: green and reflective roofing and pavements, tree planting
  • building improvements: insulation, sustainable heating

Theme - Transport and connectivity:

  • transport: enhancing cycling, walking, and public transport, car clubs, electric community transport, EV charging infrastructure
  • connecting people: access to network services and transport
  • lighting: streetlights, safety lighting

Theme - Green jobs:

  • energy efficiency schemes and services for home and buildings
  • skills development
  • green tourism

Theme - Social regeneration:

  • Community hubs and multi-purpose buildings: for social hubs fostering activity of different interest and age groups, professional hubs (ie. temporary office space), training programmes (ie parental training, integration meetings, environmental education)
  • the future of the community for everyone (ie. legacy projects and legacy funds)
  • heritage: restoration and maintenance of natural and cultural heritage
  • alleviating fuel poverty
  • housing: build new community owned housing developments
  • building and communicating sense of community identity: community specific projects on everyday life or community history (ie. community journal, museum, exhibitions)

Stage 4. Draft preparations

The following points indicate steps that can help to develop a cogent draft of a CAP.

  • Outline themes and actions (including general objectives, beneficiaries, management model, and timeframes).
  • List actions distinguishing priority levels.
  • Identify needed and available resources: Consider the managing body, paid manager, and potential mediators / arbiters according to needs arising from the planned actions. Include a timeline for conducting activities. Identify barriers, pitfalls and risks of planned actions. Assess context changes that might impact on your priorities.
  • Identify individuals and community partners that are able to implement the plan.
  • Set up an assessment and planning committee.

Stage 5. Designing and drafting the Community Plan

This section suggests content items for a comprehensive action plan – to be considered according to the level of detail needed for the plan to take effect. A CAP should describe planned actions against the community’s development objectives laying out a description of communities involved, timelines, and milestones.

Introducing the planned actions:

  • Community description: Community profile; Consultation results; Vision and priorities for particular themes of action.
  • Context of the plan: How the plan was developed (needs assessment). Who was involved. Who will manage the implementation of the plan including monitoring and evaluation activities.
  • Context of actions: Their background, and motivation of planned activities as well as a rational to justify priorities.

Different levels of granularity in presenting planning details might be needed depending on the administrative setup of a community:

  • A less granular delivery plan of themed actions comprising actions, responsible owners, beneficiaries and impact of actions.
  • A more detailed project management plan: A statement of what must be achieved (aka: the goals or output); Activities that have to be followed to reach the objective or goal; The target date for completion and/or a schedule for each action; Identification of the group or individual responsible for each action; Clarification of the inputs or resources for completing the action; Identification of the indicators that will allow for measuring progress toward the goals; Describe the scope of adaptiveness for an action when it isn’t succeeding.
  • Information on engagement routes to assist with the organisation of actions (i.e. groups, clubs, and organisations that can be joined for assisting in the delivery of activities)

Reporting guidance including responsibilities and timelines for documenting CAP progress

Appendices and supporting documentation, as well as other information that is important to the plan.

Section 3: Guiding Grant Applicants

While community benefit funds offering project grants should aim to establish a scheme that is flexible enough to best meet community needs and maximise engagement, it is good practice to allocate funds in a transparent and equitable manner. One way to achieve this is by setting out clear criteria on how grants can be applied for by local stakeholders. This section provides options for possible eligibility criteria to be communicated to applicants. However, this is not an exhaustive or prescriptive list, and other options may be better suited to deliver the specific aims of a fund.

General information about the scheme

  • What is the Community Benefit Fund / Scheme about?
  • Where is it registered?
  • Who is managing the fund/scheme?
  • Which communities are benefiting?
  • Are there any specific schemes and/or themes that applicants can apply for?
  • What type of activities are funded? For example: The activities must provide some measure of economic, environmental, educational, social or cultural benefit for people living in the area.
  • Application and funding schedule.

What is the maximum amount of the grant application?

One method to ensure a just and transparent allocation of funds is to establish themed funding streams with specific maximum amounts. However, depending on community needs and objectives, fund managers may choose to formulate more flexible application criteria. In any case, to manage applicants’ expectations and enhance the quality of their project applications, it is advisable to set a maximum amount that can be budgeted for each project.

For example: There is no upper limit for the Main Grant Scheme, but applicants should be mindful that the usual maximum grant is £10,000. Please contact the secretary to discuss applications that are likely to be above this amount. For projects of more than £2,500 grants of up to 80% may be awarded.

Who can apply?

Depending on the fund, one or more of these conditions may be required to apply.

For example: A group can apply if it demonstrates they:

  • Are a community-led organisation.
  • Are a not-for-profit run group.
  • Are working in and involving people from the community.
  • Have a bank account in the name of your group which requires at least two signatures.
  • Can spend the grant within one year.
  • The activity will fit with the purposes of the community benefits funds / scheme.

Who cannot apply?

Fund managers might want to consider whether the following groups are funded, these are often excluded from community benefit funding because of conflicts of interest that may arise. The list is not exhaustive and can vary depending on the fund’s general objectives. There might be good reasons not to exclude some of the groups listed below. For example, when there is only a very limited number of groups coordinating community work, too many restrictions might be counterproductive to a fund’s objectives.

An exclusion list could read as follows, for example:

  • Religious organisations (For instance, to prevent funds being used to campaign for religious causes).
  • Political organisations (For instance, to prevent funds being used to campaign for political causes).
  • National organisations, unless the group is a local branch with local management / accountability arrangements and bank account.
  • Individuals unless the application is for a bursary for individual members of community groups to participate in training courses.
  • Companies who aim to distribute a profit.
  • Projects already started (For instance, in cases where funders don’t wish to engage in match funding).
  • Schools, however Parent Teacher Associations / Parent Councils can apply if they are appropriately constituted.

Actions that will be considered for funding

Items selected for this list should correspond with the objectives of the fund determined in a community consultation process and informed by the community action plan.

Some funds indicate themes of action that they prefer to fund. For example:

  • Community facilities.
  • Skills and employment.
  • Community or local events.
  • Sport and recreation.
  • Environmental improvements.
  • Youth and education.
  • Heritage.
  • Net zero/emissions reduction initiatives.

Activities that will not be considered for funding

Some funds have found it useful to indicate to applicants action themes or activities that are excluded from funding. The following points could be considered for such a list of items:

  • Activities which are not a fit with the fund’s purposes.
  • Activities which cannot demonstrate public benefit.
  • Applications for salaries and related employment costs.
  • Political, religious, entertainment, or hospitality purposes.
  • Any purpose adverse to the interest of the wind farm.
  • Any purpose, or service that the that local authorities are obliged to provide to provide.
  • Applications for unspecified items e.g. contingency money.
  • Retrospective applications, for example the fund will not accept an application for an event that has already taken place.

Document checklist for applications

It is at the discretion of the fund if the following items are included in such a checklist:

  • Completed application form.
  • VAT registration number.
  • Statement of accounts.
  • Statement of income and expenditure.
  • Plans/drawings (if applicable).
  • Consent forms of impacted parties (e.g. planning consents, data protection consent, statutory consents).
  • Any contracts or agreements that are foundational to the planned activity (e.g. landowner agreements or lease).
  • A statement acknowledging policies relevant for the planned activity (e.g. data protection;
  • child protection; health and safety; environment protection and nature reserve guidelines).
  • Signature on behalf of an organisation.

Section 4: Community Benefits Agreement

Developers may have different approaches, but in most instances, it is good practice to underpin community benefits with a legal agreement. Agreements should be tailored according to the legal requirements and needs of both counterparties. Different levels of detail might be required depending on the type of organisation managing and administering the benefits. Before negotiating the specifics of an agreement, especially in complex project circumstances, developers should consider outlining the benefits package and setting ground rules for the negotiation process by developing a memorandum of understanding (MOU). The following provides a non-exhaustive list of clauses that developers and host communities should consider when drafting their agreement:

1. Background:

  • Developer name and planning permission details that are relevant for the community benefits scheme (i.e. annual installed MW capacity of the development).
  • Scope of the agreement.
  • Contractual partners and who receives and manages the funds (body).
  • The total annual value of the payments made.
  • Who has liability and responsibility for its management once the money has been paid by the owner.

2. Scope and overall aim of the fund:

  • Long-term and short-term development themes and objectives (i.e. developed through CAP consultation).
  • Purposes that funds may and may not be used for.
  • Restrictions: Sometimes religious and political initiatives, as well as hospitality costs or any purpose considered to be adverse to the developers interest are specifically excluded.

3. Revenue benefit:

  • Schedule of payments: When the payments will begin and cease, and frequency of payment.
  • Start date and amount of payment.
  • The formula on which the annual value is calculated.
  • Index-linking arrangements the payments will be subject to.
  • What happens with payments in case the windfarm owner runs into commercial or economic difficulties.
  • A clause on how a possible difference in the anticipated installed capacity (as from the commissioning date) and actual installed capacity (both expressed in megawatts) shall be dealt with.

4. Application of Funds (all options – if applicable):

  • Management fee: A percentage that can be used to administer the funds. Under which conditions and for which purposes the community body is allowed to retain a percentage of the total amount of the yearly payments.
  • Service provider fees and panel member expenses.
  • Strategic and match funding: Under which conditions funds can be used to attract additional finance for larger, possibly cross-communal or regional projects.
  • Investment: Forms of allowed investments such as a legacy fund.
  • Any restriction on themes that should not be supported (for example, religious and political initiatives may be excluded).
  • Conditions for repayment in case of contract breach.

5. Obligations, reporting and disclosure:

  • What obligations the community or developer has for communicating, marketing or publishing information on the fund.
  • What obligations does the host community and/or the managing body has to the project in relation to the funds, such as reporting and auditing.
  • Any review points to assess organisational structures, effectiveness of fund delivery, or to undertake periodic due diligence.
  • Frequency of reports and content items: Any agreed review points to assess organisational structures or to undertake periodic due diligence.
  • Conditions for requesting budget disclosure.

6. Assignation:

  • The circumstances under which the assignation of the community body’s rights or the transfer of its obligations can take effect, or whether possible. Commonly this is not allowed.

7. Waiver and variation:

  • Clause on if or under what circumstances diversion from clauses of the agreement is acceptable.

8. Sale/Transfer of the windfarm:

  • Mechanisms for binding future owners to the same community benefits terms if a project changes ownership.
  • Mechanisms to revise benefit funding if there is a change of circumstances.

9. Dispute resolution:

  • How disputes should be dealt with and who might/shall be consulted for mediation.

10. Termination:

  • Conditions for termination – payment of a pro rata sum.
  • Notice period.

11. Governing law (Note by which the agreement is governed):

  • For example: This Agreement shall be governed by, and construed in accordance with, the laws of England and Wales.

Section 5: Example Documents

Project and Fund Reports

Shared Ownership Cases

Community Action Plans (CAP)

CAP Consultation Reports

Criteria to Release Funds

Checklist Community Benefits Agreements

  1. The advantages of using a CLG as the vehicle for Community Investment Funds and Shared Ownership for Crossdykes Wind Farm:

    - Can register for Charitable Status taking advantage of associated tax benefits.
    - Limited liability of members.
    - It is a distinct legal entity capable of owning assets, borrowing money, employing staff and advisors.
    - Has the requirement for formal governance, constitution and regular reporting to Companies House and Charities Regulator. As a developer, we have a responsibility to ensure that the funds are kept safe and accounted for at all times. ↩

  2. ‘Tag-along, drag-along’ rights were written into the legal agreement with CCBL and CCSL. This meant that the community (minority shareholders) couldn’t prevent the majority shareholders from selling the asset (drag-along) but they’re protected in that the majority cannot force them to sell their interest at that time so they retain control over their shareholding. ↩

Back to top