Residents of a Banbury sheltered homes complex could save money on fuel bills when a planned solar heating scheme goes ahead.

A Government 'clear-skies' grant of nearly £26,000 has been awarded to Lambeth Borough Council in London, which owns 24 of the 29 bungalows in Banesberie Close, Banbury.

The cash, announced on Tuesday, July 1, by energy minister Stephen Timms, will be used to upgrade heating and insulation in the bungalows.

Lambeth Council's project manager Colin Monk said: "We have owned the bungalows for some time, and the current heating systems are well past their sell-by date.

"A survey of the properties showed they were suitable for solar heating, and we applied to the clear skies scheme for a grant. The balance of the £60,000 upgrade will be paid by Lambeth Borough."

He said that solar heating panels on the roofs of the bungalows would provide up to 70 per cent of the hot water -- especially in summer when the central heating was switched off.

Mr Timms said: "The response to the clear skies initiative shows that people across the UK really understand the impact renewable energy can make to their community. These projects show that thinking small is the first step to changing the bigger picture. Each scheme is a contribution to our aim to generate 10 per cent of our electricity from renewable sources by 2010."

The £10m clear skies programme was launched in January and funds homeowners and community organisations in setting up small-scale renewable energy projects in England and Wales.