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Solar panel project suffers set back

News release

14 November 2011

CityWest Homes' solar panel programme suffers set back

Residents of Westminster City Council may have to wait longer to benefit from free electricity and large savings on their energy bills after the Government’s announcement that it will significantly cut feed in tariffs (FITs), aimed at encouraging more renewable energy sources, this December.

CityWest Homes, which manages 21,700 homes on the local authority’s behalf, was days away from signing a deal worth £12million to install solar panels on 600 buildings by March next year.

The scheme was designed to help tackle fuel poverty, particularly as some areas of Westminster have the highest levels of fuel poverty in the country. It would have helped 1,000 residents shave a third off their energy bills per year, a saving of £7.5million over 25 years, and helped a further 10,000 households on communal systems save £1.75million over the same period. The reduction in carbon emissions was expected to be 50,000 tonnes over the next 25 years.

CityWest Homes had taken a unique approach to its scheme compared with other models used by the country’s housing associations. It provided direct solar panel connections to over 1,000 flats, a first for the UK social housing sector, and the contract was structured so that external investors provided the panels at no cost to residents or the council. Benefits included free electricity to homes during the day and income generated via other avenues, such as overage payments which were expected to be about £10,000 a year. The money would be reinvested into the community and other green projects.

The scheme is no longer viable under the new FITs structure. However, CityWest Homes will now install as many solar panels as it can before 12 December, when tariffs reduce from 43.3p/kWh to 21p/kWh, though it is likely to be less than £1 million worth of panels, a fraction of the original target.

Mark Hoyland, CityWest Homes’ chief executive, said: “Obviously we are hugely disappointed that more residents in Westminster cannot benefit from a larger solar panel scheme. However, despite this set back, CityWest Homes will continue to find better ways to use renewable energy sources, and promote energy saving, eco-friendly measures to benefit both our residents and the environment.”

-ENDS-

For more information please contact Veronica Matheson, corporate communications adviser on 0207 245 2540 or vmatheson@cwh.org.uk