MORE than 500 Hampshire homes have lost out on a scheme to provide solar panels to council houses.

Winchester City Council had planned to install Photo-Voltaic Cells on around 2,000 of its 5,000 houses, but that number has dropped to between 1,000 and 1,500 because of problems with shading and limited roof space and damage.

Tenants in suitable homes with south-facing roofs at a suitable pitch could benefit by between £80 to £125 a year in cheaper electricity.

The panels turn sunlight into electricity which can then be harnessed by the tenants for free during the day, with any surplus fed back into the national grid.

But the loss of a quarter of eligible homes caused councillors to question whether the scheme is cost-effective. Councillor Frank Pearson said: “I’m disappointed that the number of potential properties has fallen from 2,100 to somewhere between 1,000 to 1,500. Is this cost effective?

Above all I’m concerned that the tenants get the benefit.”

But Richard Botham, head of landlord services, said: “The council is incurring no direct costs for the process. The proposals are cost-effective because the residents get the immediate benefit.”

Three commercial companies are in discussion to install and maintain the panels for free if they can recoup the feed-in tariff (FIT) incentive over a 25-year period, with the council to choose in May.

But the council remains under considerable pressure to complete the installation by April 2012, when the Government financial incentives will reduce. Mr Botham said: “At the moment it does not look like there’s going to be a significant reduction in April 2012, but this is an issue that is developing all the time.”

Council leader Kelsie Learney said delays in the scheme, originally announced in October, had been down to legal processes.

She said: “It has taken a considerable amount of time to sort out the legal processes. It’s essential that we get the legal details of this right, as this is going to be a long-term agreement.

“The money raised will then allow us to fund energy-efficient measures not just for council house tenants with the cells but other council house tenants will be able to benefit as well as residents across the district.”

Cllr Learney added that the council is confident it can complete the installations by next February, with work provisionally stated to begin in November and last four months.

The green energy plan would also reduce Winchester’s carbon footprint by saving about 2,000 tonnes of CO2 a year.