Energy bills for more than 500 tenants and leaseholders on four different estates are set to be slashed by new solar panels.

Hackney Council has approved plans for the scheme – expected to cost almost £2 million – which would allow residents to buy discounted electricity generated by solar panels on their buildings' roofs.

The estates earmarked to benefit from solar power this year are Frampton Park, Whiston, Woodberry Down and Wrens Park.

More than 4,000 solar panels will be fitted to 29 buildings as part of project, commissioned by the council’s energy services arm – Hackney Light and Power.

The installation will have no cost to tenants and leaseholders on the estates, and it is “unlikely” that any work will be needed inside people’s homes.

The council says it hopes the new panels will deliver savings of 20% on electricity bills for residents, who will be able to buy the energy generated at a rate lower than Ofgem’s price cap.

Cllr Mete Coban, Hackney’s cabinet member for climate change, said: “Installing new clean energy on Hackney’s council blocks will cut bills for council tenants, create high quality local jobs and reduce the borough’s reliance on dirty fossil fuels.

“The scheme is a win-win as, by selling the energy generated to residents, the council will also be able to recoup the costs of installation over the next 10 to 20 years and expand its solar programme to more council homes than we’d be able to if we didn’t use this model.”