Caerphilly Council generated a £1.1 million surplus from offloading a substantial solar farm development overlooking Penyrheol, the authority has acknowledged amid scrutiny over the financial handling.
The 20-megawatt installation at Cwm Ifor is slated for grid connection in December and stands capable of supplying sufficient electricity for approximately 6,000 households.
The authority has promoted the disposal as a triumph, contending it delivers ecological advantages alongside additional funding for essential services.
However, certain opposition members have raised doubts about the wisdom of divesting the project so early in its development – proposing that retaining ownership and harvesting extended returns might have proved more financially prudent.
The local authority advertised the solar scheme’s rights in 2025 following planning consent, eventually transferring them to Fuse Energy.
Financial details of the transaction remained undisclosed initially, though the council has subsequently disclosed receiving just under £2.7 million from the company.
Cllr Amanda McConnell, the climate change portfolio holder for the Labour-run authority, stated that the Cwm Ifor installation could supply clean electricity to roughly 6,000 households while bolstering a more adaptable and robust energy network.
She continued that collaboration with Fuse Energy to progress this scheme and deliver enduring environmental and economic gains was welcomed. Profits from the site disposal would be ploughed back into providing essential services to local communities.
Plaid Cymru group members on the council have nevertheless cast doubt on the sale.
They noted that Freedom of Information documentation revealed expenditure exceeding £1.3 million on the scheme, together with £168,000 in transaction-related costs.
Cllr Charlotte Bishop, the opposition leader of the Plaid grouping, observed that her concern extended beyond mere profitability to whether the authority had parted with a strategic, income-producing public asset prematurely, potentially sacrificing years of prospective earnings for an immediate payment.
She expressed curiosity about whether the disposal truly represented optimal value for council taxpayers.
Responding, a council representative indicated that independent valuation was conducted by two specialist companies, with 12 indicative bids received for the Cwm Ifor rights prior to concluding an agreement for a figure exceeding expectations.
Plaid Cymru’s deputy leaders, however, maintained that extended ownership could have yielded greater returns for the authority.
Cllr Mann stated that members had received repeated assurances over several years that the solar farm represented a project conceived as an income stream for the council. The Labour reversal demonstrated extreme short-termism and was deeply regrettable.
Cllr Enright challenged whether the authority had essentially relinquished a valuable public resource at a knockdown price.
A council spokesperson countered that comprehensive financial projections, risk assessments and scenario analyses were executed to weigh selling against retaining ownership, factoring in delivery risks and substantial initial capital requirements. Based on this analysis, the council opted to divest its stake, with an underspend effectively elevating returns to nearer £2 million.
Cllr Nigel Dix, leader of the independent members, offered greater endorsement for the transaction.
He noted that generating some profit was reassuring, provided it represented value for money. Avoiding financial loss was paramount, so he viewed the outcome positively.