Will local authorities introduce solar panels

The government’s proposed “clean energy cash back” scheme (or feed in tariff) when introduced, will guarantee a set price for every unit of green electricity generated for 25 years. If all housing association properties had a solar photovoltaic (PV) system, which can generate 2,100 units of electricity a year, they could earn an income of around £20 thousand per home over 25 years.

The scheme would also pass on thousands of pounds of electricity savings to tenants – many of whom are suffering from fuel poverty.

Faced with a shortfall of £260 million due to the government’s recent decision to cut social housing rent in 2010, some housing providers are taking advantage of the financial benefits that investing in solar power brings. As well as a much needed income boost for the organisations, solar power helps low-income families cope with the financial hardship caused by rising fuel prices.

Brent Housing Partnership (BHP) is an Arms Length Management Organisation (ALMO) working with Solarcentury, a UK solar energy company, to generate a guaranteed income from clean electricity. Solarcentury has begun to install solar electric roof tiles, designed to suit the majority of housing associations at a low cost, on over 80 existing homes on the Brentfield Estate in Brent. This will provide residents with approximately a third of the electricity they need for free – a saving of £120 every year.

Shaun Gillam, Senior Project Manager, Brent Housing Partnership said: “Solar power is a great way of investing in the future for our tenants. It is a way for us to reduce our residents’ expenditure on energy and meet energy efficiency targets whilst making a profit at the same time. With over 13000 BHP homes in Brent, we’re able to make a real difference to the quality of our tenants’ lives.”

Housing providers own an estimated 2.4 million homes across the UK. Many of these tenants live in fuel poverty, spending more than 10 per cent of their household income on heating and powering their homes

Town & Country Housing Group, in Kent, is another housing provider helping their tenants out of fuel poverty with solar PV.

Paul White, Innovation, Design & Quality Manager said: “Solar power is already playing a key role in the greening of our estates, 160 of our households have solar so far. It is reducing tenants’ electricity bills and helping us to deliver low energy homes that are affordable, functional and easy to live in.”

According to campaign group National Energy Action, more than five million households across the country are affected by fuel poverty.

A typical size solar PV system for a household is a 2.5kWp system and costs an average £12,500. On average, this system will generate 2,125 units (kilowatt hours (kWh)) of electricity a year. The Energy Saving Trust says this will produce about 50% of the electricity a household uses in a year.

This size of system will result in bill savings of £245 a year based on the average cost of electricity at 13p per unit and 50% electricity generated used. The income received from exporting 50% is £50 per year, with total generation annual income an additional £730 for 25 years with the feed-in tariff scheme.

Each property in the Brent scheme will produce 1,062 kWh a year – approximately one third of their electricity, saving approximately £120 each year for the tenant. This income figure is based on the system generating the number of units stated above and applying the government’s proposed generation tariff of 36.5p per unit generated. The figure also assumes that on average tenants will consume 50% of the solar electricity in the property and export the remainder and it assumes a top up payment of 5p for each unit exported and energy savings of 13p per unit.

Source - Green Building Press