COUNTY chiefs are officially mothballing a solar scheme for Hampshire County Council buildings, blaming cuts in Government subsidy.

A total of 31,000 sq ft of roof space – equal to four football pitches – was earmarked for photovoltaic (PV) panels.

Two months ago, the county council backed the first phase of the scheme, involving the installation of PV panels on 60 buildings at a cost of £3.5m before the end of the current financial year. Work was due to start next month.

But ministers brought forward a deadline for halving the subsidies, known as feed-in-tarrifs (FITs), from April 2012 to this month, which means the business case now stacks up differently.

On Monday the Cabinet will be asked to rubber-stamp putting the renewable energy scheme on hold.

Last June, officers said that the scheme to harness the sun’s energy would cut the local authority’s electricity bill, pay for itself over 15 years and reduce the authority’s carbon footprint.

But council bosses now say the reduced FITs will not be enough to pay back the cost of installing the solar panels.

Instead of generating cash, it would cost the council about £700,000.

In a statement, council leader Cllr Ken Thornber said: “Unfortunately our scheme is no longer viable and does not represent a sound investment for county council funds now that the FITs have been cut so dramatically.”

The Conservative council boss added: “It is disappointing that the Secretary of State has made this unwelcome and unexpected decision, which has brought the solar energy industry to a stop overnight.

“The decision to fix on a cut-off date in December, even before the consultation has closed on the proposed changes, has forced us to reevaluate our plans and in the current economic climate, we along with many others must reluctantly shelve our scheme.”

No contracts had yet been awarded but extensive technical work had been carried out, so the scheme was ready to start.

FITs are a payment for every unit of renewable energy generated, guaranteed for 25 years.

The council said it still had a strong track record for cutting carbon emissions, exceeding targets for buildings, schools and street lights over the past year.

But Cllr Keith House, leader of the Liberal Democrat opposition group, said: “Hampshire has failed in any green ambition. This is a sad reflection on the county council’s failure to get on with solar installations when the FITs were at their most generous.”