Phase 1

During this phase:

  • the developer drafts a Memorandum of Understanding (MoU) and a non-disclosure agreement (NDA)
  • the community applies to CARES for legal advice (Choose one community organisation to take the lead on the application with other groups acknowledged as partners).

Milestone 1: procure legal advice (invite quotes for legal advice on MoU and NDA from at least three potential bidders).

Milestone 2a: Complete Memorandum of understanding (MoU) (liaise with the community groups, developer, and any others as required and complete a legal review of the MoU document).

Milestone 2b: Complete non-disclose agreement (NDA), if applicable (liaise with the community groups, developer and any others as required and complete a legal review of the NDA document).

Next steps: Pursue investment laid out in the MoU, following Phase 2: Shared Ownership.

Phase 2

During this phase:

  • the developer produces a Heads of Terms* document (usually post-planning consent).
  • the community takes further professional advice with CARES support.

Milestone 3a: Procure a financial advisor (invite quotes for financial advice from at least three potential bidders).

Milestone 3b: Review and complete Heads of Terms (receive advice from financial advisor, and liaise with community groups, the developer, and any others as required and complete the Heads of Terms).

Next steps: offer from the developer, following phase 3.

*Heads of Terms is a document: which supports pre-contractual negotiations. Formal, legally binding contracts are intended to follow agreement to the heads of terms.

Phase 3

During this phase:

  • the developer produces an offer document
  • the community takes further professional advice on offer with CARES support.

Milestone 4a: Secure a source of finance (Local Energy Scotland to introduce potential funders, the community will receive financial advice on funding offers from sources of finance and on the developer’s financial model).

Milestone 4b: Set up a community controlled body (In order to access sources of finance, it is a requirement that the community group sets up an incorporated body and receives legal advice on the best structure, based on the sources of finance).

Milestone 5: Takes advice on offer and complete (Liaise with your group, developer and any others as required and complete a financial review of the document, the community decides whether to proceed with the investment or pursue other opportunities).

Financial close or post construction

Milestone 6: Complete legal and financial due diligence with CARES support.

Project Complete! Fill in survey for Local Energy Scotland.