Purpose

This project will act as a foundation for the
delivery of Solar PV in social housing, helping to support future
funding bids, by laying out the key considerations.

Content

11.1

The Committee
considered a report of the Executive Director of Neighbourhood
Services which provided the vision for what the recommended
approach to Solar Photovoltaic (Solar PV) delivery on
Sheffield’s council housing should be and recommended that
Housing Policy Committee (HPC) approve the Solar PV Strategy for
Council Housing
stock.

 

 

11.2

RESOLVED
UNANIMOUSLY: That the Housing Policy
Committee:-

(a) 
Approves the Solar Photovoltaic (Solar PV) Strategy for Council
Housing Stock as set out in Appendix A;
and

(b) 
Agrees that a further report will be brought back to Housing Policy
Committee following the completion and evaluation of the Solar PV
pilots, recommended within the Strategy, in order for the Committee
to consider and agree upon the future plans for Solar PV roll out
across Sheffield.

 

 

 

 

11.3

Reasons for
Decision

 

 

11.3.1

Solar PV offers substantial benefits, including
tackling fuel poverty, supporting grid decarbonisation, improving
energy resilience, and generating income. Installing Solar PV on
our council housing stock is a strong strategic move. It aligns
with our net zero ambitions, facilitates home retrofitting, and
improves EPC ratings.

 

 

11.3.2

However, our current budget does not allow for a
sufficiently large-scale rollout due to significant financial
constraints. To overcome this, we can leverage external funding
sources. There are numerous market options available, offering
different financial mechanisms and delivery
models.

 

 

11.3.3

Since we would have to consider delivering Solar
PV through a variety of funding models, this is an ideal
opportunity to test a range of mechanisms to identify which
delivers the best value for money and maximises benefits for
tenants, the Council and other stakeholders. By running pilots
across different building typologies, exploring varied revenue
optimisation services, financial mechanisms, and combinations of
low-carbon technologies, we can conduct a robust evaluation. This
will help to inform how to, and if it is, best to accelerate Solar
PV installation across Sheffield This is a decision that will be
taken by Housing Policy Committee after the pilots have been
completed, and a full evaluation report is
compiled.

 

 

11.4

Alternatives Considered and
Rejected

 

 

11.4.1

Alternative Option 1: Commit to one approach
instead of a pilot approach
Commit to one approach for Solar PV delivery
– either only funded through government funding, or only
market-based mechanisms.
 
Committing to a single, standard approach limits
our ability to innovate and optimise outcomes. Since we will need
to leverage external funding regardless, if we want to maximise
Solar PV delivery across Sheffield, adopting a flexible,
multi-approach strategy gives us the opportunity to evaluate
financial, social, and economic benefits across different models.
This approach helps us identify which mechanisms deliver the
greatest value for stakeholders without delaying progress. By
continuing Solar PV deployment through piloting varied funding
structures, revenue optimisation services, and technology
combinations, we can maximise delivery now and make informed,
evidence-based decisions for future
scaling.

 

 

11.4.2

Alternative Option 2: Do
Nothing
Failing to investigate the options for Solar PV
delivery would mean missing out on multiple strategic benefits. It
would limit our ability to improve the quality and energy
efficiency of our housing stock, making it harder to meet EPC
targets and comply with future regulations. It would also slow
progress toward our net zero commitments, reduce opportunities to
tackle fuel poverty through lower energy bills, and forgo potential
income streams from energy generation. By delaying Solar PV
delivery, we create future risks of higher long-term costs,
regulatory non-compliance, diminished social and environmental
outcomes and the potential loss of an income generating
opportunity.
 
There is also a potential future regulatory
driver through the ongoing MEES consultation, which could require
councils to accelerate improvements in EPC ratings, particularly
achieving EPC C. This dependency reinforces the need to scale up
Solar PV sooner, as it provides a practical and cost-effective
route to compliance.