Leicester ’s Solar Rental Scheme
Leicester City Council has introduced an innovative scheme to encourage householders of any tenure to install solar
water heating systems. The scheme offers householders the chance to rent rather than purchase a system. The rental
cost is linked to the amount of money saved through not purchasing gas or electricity to heat the water, thus there is
no net cost for the householder.
Aims and objectives
To install a minimum of 10 solar systems per year for the next 25 years. The systems (which use evacuated tube
technology) can provide about 70%of the average family ’s domestic hot water requirements over the course of a
year.
A solar installation will be offered for either the direct purchase scheme or the rental scheme. Energy efficiency advice
will also be provided to ensure that the house is improved to maximise efficiency. Should insulation be required, the
householder will be advised as to whether their status means they are able to access grant funding. The rental cost is
based on the savings of the hot water system achieved by the installation using the NHER assessment method. The
annual cost of the hot water will be calculated and the energy produced from the solar water heating system
assessed. Hot water loads will vary between £85 and £150 per year depending on occupation and house type; if 70%
of this is met through the solar water heater, savings will equate to between £60 and £105 annually. The rental cost
will equate to half this saving, split over 12 months (giving a monthly figure of somewhere between £2.50 and £4.40).
The rental is therefore fixed on the value of the savings and not on the cost of the system installed, thus making a
positive contribution to the alleviation of fuel poverty. The rental will be adjusted annually to the market price of
energy.
Between 1997 and 1998,Leicester City Council piloted two solar water heating systems
that were installed on their own buildings. These proved that solar water heating systems
can wor