VULNERABLE residents will miss out on cheaper electricity bills after Waltham Forest Council was forced to scrap a scheme to install solar panels on council properties.

The authority was set to approve the ambitious scheme for 1000 homes, which would have provided free electricity during daylight hours and cut household bills by an estmated £110 a year.

But the proposal was pulled on the eve of a decision by leading councillors after the government announced it would be cutting financial incentives for the scheme.

The council had hoped to earn £11 million over 25 years through tariffs, but these have now been reduced by up to 50 per cent.

Cllr Mahmud said: “The Government announced proposals for major changes in the financial support for these schemes on October 31 – notably the proposal to reduce the ‘feed in tariff’ applicable to this scheme by more than half.

“The effect of such a major cut is significant enough to make what was a very positive initiative sadly untenable as presented in the paper. A scheme that could have provided savings of £110 annually to 1,090 households has left many vulnerable households without the prospect of reducing their energy bills as anticipated.

“In addition to the benefits to the residents of Waltham Forest, the scheme would also have contributed to the Council’s reduction of CO2 emissions, and provided a financial return to the Council.”

Ashley Gunstock, of the Waltham Forest and Redbridge Green Party said: “I know we’re in recession but at a time when people think the environment is the last thing they need to worry about, in actual fact it should be the first.

“The government is creating a false economy; by removing funds for these initiatives they are only acting to worsen the problem. You can’t cut back all the time – that’s no way to boost an economy.

A spokeswoman for the Department of Energy and Climate Change said: "We are taking action to ensure that the scheme stays within budget, and to put the solar industry on a steadier, clearer and sustainable growth path, avoiding boom and bust.”

Click here to follow the Waltham Forest Guardian on Twitter

Click here to follow the Waltham Forest Guardian on Facebook