Decision Maker: Housing Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: December 4, 2025

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.