GREEN energy deals are set to deliver income for cash-strapped councils and put money into the pockets of their residents.

North Tyneside Council is preparing to go to the market with multi-million pound plans to install solar panels on the roofs of homes and public buildings.

In April last year the previous Government introduced electricity feed-in tariffs which guarantee an attractive set price based on energy output for 25 years for renewable electricity generated by installations completed by accredited installers by March 31, 2012.

The North Tyneside option would involve companies, attracted by the potential financial return under the feed-in tariffs offering free installation and long-term maintenance of solar panels. Ian Conway, head of the council’s North Tyneside Homes, said the 25-year tariff payments went to the installers, while council tenants would enjoy free daytime electricity – worth an average of around £150 a year.

The council would also benefit from “roof rent” from the installers.

Another benefit would be the saving of about a tonne of carbon dioxide emissions per home per year – cutting the council’s carbon footprint and helping combat climate change.

Mr Conway said the average solar panel installation was around £8,000-£10,000 per home.

He said this would be expected to generate between £850-£900 in tariff payments annually, which over 25 years was an inviting return on installation costs.

North Tyneside Council has 15,500 homes and around 7,000 southerly facing properties have been identified as potentially suitable for solar panels.

Income generated for the council may be used to provide renewable technology for the homes which are not suitable for solar panels.

Mr Conway said the council was also considering advising private home owners who also want to take advantage of the Feed-in Tariff.

Solar panels on public buildings would cut their energy costs.

North Tyneside Council’s cabinet has authorised the procurement of renewable technologies to suitable housing stock and public buildings. North Tyneside Mayor Linda Arkley said: “This is potentially a really exciting initiative.

“It could lead to a multi-million pound investment that would significantly reduce North Tyneside’s carbon footprint, reduce fuel bills for some of our tenants, and possibly other householders, as well as generating income for the council.”