Minutes:
Councillor Akhtar, Deputy Leader, introduced a report by the Strategic Director of Neighbourhoods and Adult Services, which set out details of the proposal to install photovoltaic solar panels (“PV solar panels”) on Council house roofs on a large scale. This had the potential to provide the Council with a revenue stream, in addition to low cost energy for the tenants and economic benefits in the long term.
Following initial analysis of the 21,000 Council houses there may be an opportunity to install panels on the roofs of 6,000 properties. If the Council committed to a PV solar panel installation programme it was critically important that it secured the most financially advantageous deal available.
Many local authorities were considering the potential for generating income through the Feed-in Tariff (“FIT”) programme, however, few have so far committed on a large scale because of uncertainties. The Government was currently reviewing the Feed-in Tariff programme and it was anticipated that this would reduce. As yet, there were no reliable indications of the scale of that reduction and the Council needed to form a view about the pace it wished to proceed taking into account a thorough risk analysis.
This report, therefore, set out how the Feed-in Tariff worked, the potential income it could generate, three alternative delivery models, public procurement rules and the actions required to enable the Council to proceed with a large scale installation programme.
The finance and risk and uncertainties associated with this proposal were set out in detail as part of the report.
Cabinet Members asked a range of questions and sought further information on fuel poverty and energy efficiency models, maintenance and equipment lifespans, replacement of lost/damaged equipment, market testing, feed-in tariff changes, opportunities for the Council for a substantial income stream, analysis of the various options and opportunities to explore others, technological assumptions and a twin pronged approach and the need for the employment of an independent energy advisor to help the Council maximise the benefits of the installation programme and mitigate risk.
Resolved:- (1) That the in principle proposal for the installation of photovoltaic solar panels on Council houses and public buildings be approved with registration on the Government’s Feed-in Tariff programme.
(2) That consultation take place with tenants to inform the final decision.
(3) That in accordance with contract standing orders, contractors be invited to submit tenders for a contract to affix under licence photovoltaic solar panels on council house roofs and public buildings in the borough comprised of:-
(a) one or more of three lots of 2000 properties (6000 properties in total), or
(b) such other number of properties as the contractor may specify having regard to its ability and capacity to install the specified number,
provided that the Council may at its absolute discretion accept some or none of the submitted tenders.
(4) That the appointment of an energy expert to give specialist advice and analysis of alternative delivery models be approved.
(5) That the deployment of sufficient Council resources to enable the successful delivery of actions identified in the report be approved.