The voluntary scheme, backed by industry body RenewableUK and British energy secretary Ed Davey, will offer communities a stake in new energy projects including onshore wind farms, PV and hydro plants.

Developers will consult with local people to ask if they would be interested in community ownership and investment in commercial projects, offering stakes ranging between 5% and 25% of a project, depending on size and type of scheme, said RenewableUK.

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