Solar panels are to be installed in 800,000 low-income homes across England and Wales over the next five years, as part of a new government scheme. The Dutch firm, Maas Capital, is investing £160m in the project. The panels, which will be free to tenants, are expected to cut hundreds of pounds from energy bills, according to the UK firm Solarplicity.

The first people to benefit from the scheme include residents of a sheltered retirement home in Ealing, west London.

Speaking at the site, International Trade minister Greg Hands said: “This initial £160m capital expenditure programme will deliver massive benefits to some of the UK’s poorest households. “As well as creating 1,000 jobs and delivering cheaper energy bills for up to 800,000 homes, it shows yet another vote of confidence in the UK as a place to invest and do business.”

The firm providing the panels, Solarplicity, will work with more than 40 social landlords, including local authorities across England and Wales.

It will profit from the payments received under the feed-in tariff scheme and payments for energy from social housing customers. The feed-in tariff scheme offers guaranteed cash payments to households that produce their own electricity using renewable technologies. It changed in February, adopting different rules and lower tariff rates.