People living near wind farms could get energy bill discounts as high as £600 per year under government plans for communities to get money from developers.
Onshore wind farms will be told to make financial contributions to communities living nearby, based on the amount of energy they generate, The i Paper understands.
The plans, which are expected to be announced this month, aim to prevent so-called Nimby objections from residents who do not want energy infrastructure built near their homes.
The plans would see local communities entitled to £5,000 per megawatt per year in mandatory contributions from wind farm developers.
The scheme is modelled on a similar initiative in Scotland in which wind farms pay the same amount into community benefit funds that can be used as locals see fit.
In Carsphairn, a village in Scotland, locals have used the money to give households living within the community council area energy bill discounts worth £600 a year.
In a previous consultation document, the Government suggested that energy bill discount schemes could be set up with the money, paying out an average of £200 a year to each household.
The funds could also be used to pay for local projects, community centres, employment initiatives and even road repairs.
Some developers already voluntarily pay into community benefit funds, but the changes would ensure that all communities are compensated for hosting the infrastructure, according to a local government source.
Households near solar farms are also expected to receive money under the plans, with the Government believed to be considering annual payments of £800 per megawatt hour, according to sources familiar with the discussions.
However, the solar industry wants to see contributions capped at £400 per megawatt hour and has argued that if they are too high they will hurt investment.
‘I got £600 off my energy bills’
Liz Holmes, who lives in Carsphairn, received £600 off her energy bills last year because she lives near three wind farms.
Holmes, 82, said the local energy bill discount scheme was put in place more than five years ago after “grumbling” from residents who felt they didn’t “see” the money going into the community benefit fund.
Liz Holmes, a retired teacher, was happy to get the £600, although she has objected to plans for more wind turbines (Photo: supplied)The amount, which is decided by a group of volunteers appointed by more than 100 residents and paid directly into their bank accounts, has steadily risen from £200 to £600 a year.
The community benefit fund has also been used to fix the roof of the local church, put toilets in the hall and buy an old bowling alley. Residents are also making plans to use it for housing. Some of the wind farms pay into more than one community benefit fund.
“I’m very pleased to get £600,” Holmes said. “Why wouldn’t I be? It doesn’t mean to say that I look more kindly on the turbines. As far as I’m concerned, they blight my lovely views.”
Even though they appreciate the money, she and other residents have continuously objected to proposals for more wind turbines in the area.
Holmes, a retired teacher, said she feels “torn”. “If it means we’re saving the planet, I will go with it, reluctantly,” she said. “But there are many people who are very angry.”
She said wind developments have resulted in damage and disruption from big trucks carrying parts on rural roads, and raised concerns about noise and the impact on property values.
“I used to see that money as a bribe,” she said. “It kind of is, but that’s a silly way to look at it, because the community has been able to achieve quite a lot with this money that without it they wouldn’t have been able to do.”
It is not yet clear how many households would be eligible for the payouts, but there are currently more than 800 onshore windfarms across the UK. They are typically constructed in coastal or upland areas where winds are strongest.
Steven Agnew, head of policy at trade body RenewableUK, said communities “must remain at the heart of the decision-making process to determine what form these benefits should take”.
He said: “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.”
Chris Friedler, policy manager for environment and planning at trade body Energy UK, said developers have an important role to play in “ensuring these benefits show up on bills – or in community funds for vital local services”.
He said: “From building housing to funding education or revitalising community centres and public infrastructure, a helping hand is there for developers to provide – and for communities to decide upon.”
A Department for Energy Security and Net Zero spokesperson said: “We have made clear that communities hosting clean energy infrastructure should benefit from it.
“We are reviewing responses to our consultation on community benefits and will set out next steps in due course.”
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