About 50 pre-fabricated homes built after World War II have been replaced by new modern brick-built bungalows at a cost of �4m.

Solar panels are used to heat the hot water supply, with improved insulation used to further reduce bills.

Energy experts said the panels will get between 50% and 70% of the hot water energy from the sun each year.

Richard Johns, from Solar South said: "This is the biggest solar energy product in Lincolnshire, in real terms it's actually good value for money.

"It will provide certainly on a sunny day all the hot water they (residents) need.

"So, on a sunny day they won't have to spend any money on heating the water up."