Issue - items at meetings - Home Energy Efficiency Investment Options - Solar PV

Report of the Strategic Director Place (copy attached).

39.1    The Committee considered a report of the Strategic Director Place which reported that the Council had the opportunity to install solar PV panels onto its Council-owned residential properties.  This had arisen out the Government’s Feed-in-Tariff incentive scheme.  Housing Commissioning had been working with tenants, the procured Energy Managing Partner (Climate Energy) and other local authority partners to investigate and maximise home energy efficiency investment options for tenants and residents from Feed-in Tariffs (FITs).  The recommendations in the report were agreed by Cabinet on 22 September 2011. 

39.2  Councillor Peltzer Dunn pointed out that there were a number of instances where there was a mix of tenants and leaseholders in a block.   He asked if paragraph 1.3, bullet point 5 (allow some Council tenants to lower their fuel bills) was open to all residents of blocks.  The Head of Housing Strategy and Development and Private Sector Housing replied that it was the intention to share the benefit throughout the block.

39.3  Councillor Peltzer Dunn referred to paragraph 7.2 of the report “Approval is required now to realise the benefits of CO2 reductions and the provision of free or cheap electricity to tenants who may be living in, or at risk of, fuel poverty”.  He considered that all tenants living in a block should benefit and that there was a lack of equality in this statement.  The Head of Housing Strategy and Development and Private Sector Housing replied that there could be a mechanism to distribute the money more widely across the city.   

39.4  Councillor Peltzer Dunn asked if all residents within these properties would benefit from cheaper electricity.  The Lead Commissioner Housing replied that the feed in tariffs were split into two.  Panels on a roof provided cheaper rates.  Meanwhile, the Government guaranteed a further amount of money to the local authority to invest in the scheme.  Everyone who lived in the block would get an equal share of the benefit.  A discussion was taking place with the company to see if the pooled amount could be recycled and targeted to people in greatest need.  

39.5  Councillor Robins asked if solar panels were tried and tested, and maintenance free.  The Chair confirmed that it was tried and tested technology.  The Lead Commissioner Housing explained that the solar panels were not maintenance free, but the government was guaranteeing the funding over 25 years.  The scheme was underwritten by the government.  It was an opportunity to tackle fuel poverty, especially amongst the most deprived estates and families. 

39.6  Councillor Jarrett informed the Committee that the technology was about 50 years old.  Technology was evolving and maintenance was low.  Cleaning might be an issue but the panels would create a significant amount of electricity.  There would be a slight degradation after 15 years.    It was very stable, very reliable technology which should give long, ongoing benefit to residents.

39.7  Chris Kift believed that there was a need to start work on this project.  Solar Panels placed on St James’s House would generate electricity all day, due to the position of the block. 

39.8  Councillor Mears stated that she was pleased to see the administration carry on an initiative started by her administration.   She was concerned at paragraph 3.2 in relation to overcladding projects.  She was disappointed to see Essex Place removed from the list which she considered was a backward step.

39.9  RESOLVED -  (1) That it is noted that Cabinet on the 22 September agreed the following recommendations.

(a)     That Cabinet approves a capital programme budget up to a maximum of £15.0 million for Solar Photovoltaic Panels on council housing stock to be financed through unsupported borrowing in the Housing Revenue Account, which will only be drawn against subject to the approval of the Strategic Director for Place and the Director of Finance, in consultation with the Cabinet Member for Housing to proceed with the scheme.

(2)     That authority be delegated to the Strategic Director for Place, in consultation with the Cabinet Member for Housing to approve the planning, supply, installation and maintenance of the panels via an approved framework agreement and a call off contract or contracts under an approved framework agreement.

(3)     That Cabinet notes the outcome of the initial options appraisal undertaken by Climate Energy, indicating that there is an outline business case to support delivery of a solar photovoltaic scheme across the council housing stock and to meet strategic housing and other council priorities, including private sector housing renewal, reducing fuel poverty and reducing carbon emissions.

(4)     That Cabinet notes the procurement exercise to establish the Solar Bourne framework agreement undertaken by Eastbourne Borough Council with involvement from partners in the BEST consortium, and that the costs identified through the above procurement further support an outline business case as indicated by the initial options appraisal work.