SOLAR hot water units are being installed in house roofs, saving residents £140 a year.
Ten homes in Saltburn, Guisborough, Skelton, Loftus and Brotton have been chosen because the properties are not connected to the gas network and are hard to heat.
The domestic solar units are being fitted in a partnership scheme between Warm Zone and Redcar and Cleveland Borough Council.
Dorothy Buckingham, 66, of Guisborough, was having a solar unit installed this week.
"I'm hoping it will save me a lot of money and I've been told I'll get a lot more hot water," she said.
"I'll probably have to spend the money on paying other bills because we've had a lot of increases recently. The savings will make a big difference to me."
Peter Spencer, chairman of the council's planning committee, said: "This is the start of an ambitious project and I look forward to a time where most households will have solar units."
The work is being carried out by heating engineers H and B Plumbing of Saltburn and The Insulation Company of Darlington, who will both achieve accreditation under the Government-funded Clear Skies renewable energy programme.
The scheme, funded through the Neighbourhood Renewal Fund, supports the council's move towards a more renewable future.
The council, along with the other five Tees Valley authorities, is working in partnership with the Tees and Durham Energy Advice Centre, based at Billingham, which is promoting the installation of domestic solar hot water units.
Beccy Brown, Redcar and Cleveland Warm Zone director, said: "This is the latest example of how partnership working can successfully help renewable initiatives in hard-to-heat homes."
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