Cash Boost for Coastal Towns in Return for Hosting Clean Energy Infrastructure

Millions could flow into seaside and rural communities as Government demands local payback from wind and solar developers

Coastal and rural communities across the UK could soon see major investment in community centres, transport links and training schemes as part of new government plans linked to clean energy projects.

Under the proposals, developers of offshore wind, onshore wind and solar farms will be legally required to pay into local community funds. These payments, which could range from tens of thousands to millions of pounds per year depending on the size of the project, would be spent on local priorities chosen by residents.

This forms part of the Government’s Plan for Change to become a clean energy superpower while supporting regional growth.

Local Payback for Hosting National Infrastructure

The Government says the funding will recognise the role rural and coastal areas play in hosting critical energy infrastructure. Communities may also be offered shared ownership of developments, giving them a direct financial stake and ensuring profits are reinvested locally.

Energy Secretary Ed Miliband said:

“If you live near an offshore wind or solar farm, your local community should benefit from supporting this nationally critical mission.
Our Plan for Change will revitalise Britain’s coastal and rural communities creating community wealth, better facilities and energy security for the country.”

What Communities Could Receive

The types of benefits on offer could include:

• Investment in energy efficiency for local homes

• New community centres

• Sports and recreation funding

• Support for community transport

• Education bursaries and apprenticeship funding

• Grants for small local businesses

• Investment in local arts, heritage and culture

The plan also builds on proposals in the Planning and Infrastructure Bill which would give homes within 500 metres of new or upgraded transmission lines up to £2,500 in electricity bill discounts over ten years.

A full consultation is now open until Wednesday 16th July, with views invited from industry and stakeholders on which types of energy infrastructure should be included.

Examples Already Making a Difference

Several existing schemes have already shown how local communities can benefit:

• Crossdykes (Dumfries and Galloway): The community held a share in the subsidy-free wind farm and still benefits from a fund worth £7,000 per megawatt each year. So far, the fund has supported over 20 local projects including minibus funding for schools, nursery support, and improvements to community centres.

• Clocaenog Forest (Conwy and Denbighshire): Since 2020, this wind project has delivered £768,000 annually to local communities through a £19 million lifetime fund. It’s helped fund youth clubs, sports facilities and health and wellbeing projects.

• Forest Gate (North Wiltshire): Developed by Eden Renewables, the community will own up to 20% of the solar farm and receive £20,500 annually, plus £3,000 for educational workshops. Over the lifetime of the project, the total benefit is expected to exceed £2 million.

James Robottom, Head of Policy at RenewableUK, said:

“Renewable energy developers have a long history of providing a wide range of benefits for local communities…
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.”

Coastal Investment on the Rise

The announcement follows a series of coastal investment measures made earlier this week, including the £360 million Fishing and Coastal Growth Fund. This will fund fleet upgrades, new training and international promotion for British seafood. A new 12-year fishing agreement with the EU and a deal to reduce export red tape for seafood businesses were also confirmed.