Turnover based calculation

Move from a fixed £ per MW model to a transparent percentage of total development turnover. The current MW based approach does not reflect the actual value generated. Electricity prices fluctuate. Calculating community benefit as a percentage of gross turnover would 

  • ensure payments reflect the tru value generates
  • remove reliance on voluntary interpretation of recommended rates
  • prevent accounting practices from reducing returns
  • create automatic adjustments
  • provide transparency and fairness 

Why the contribution is important

Turnover must be used rather than profit. Profit based calculations are vulnerable to internal accounting decisions, finance structures and cost allocations. Turnover is objectice and visible. 

by smithm31 on February 24, 2026 at 11:53AM

Current Rating

Average rating: 5.0
Based on: 6 votes

Comments

  • Posted by Sarahm1 March 13, 2026 at 12:11

    I agree that when profits and turnover increases so should community benefit

  • Posted by Bonanza March 16, 2026 at 11:27

    I fully support this concept although there is a need for there to be a guaranteed minimum level of payment. This is needed to allow communities to use the minimum payment level as the basis/guarantee for borrowing should they choose to do so. The current (new) proposed level of payment 0f £6K/MW is pitifully small (frankly insulting to the communities) but instead a minimum of £8K per MW installed generating capability or 5% of revenue, whichever is the greater. Note this is based on the installed capability not the actual power generated.

  • Posted by PeeblesCommunityCouncil March 18, 2026 at 15:04

    Agree with the poster and Bonanza.
    We support the Scottish Climate Coalition on Energy's Community Benefit asks, based on revenue with a minimum floor, as set out https://communityenergy.scot/wp-content/uploads/2025/06/New-Standards-Community-Benefit-Funds_Jun-2025.pdf a draft of which was submitted to the Community benefits from net zero energy developments consultation which closed 11 Apr 2025

  • Posted by BrunoSantos March 25, 2026 at 09:38

    A minimum floor should be defined with a real increase considering inflation but total amount should be dependent on annual turnover. The minimum payment should not be a fixed value, but already incorporate inflation increase every year.
Log in or register to add comments and rate ideas