A Liberal Democrat-run council has been criticised for lending £500,000 to an organisation installing solar farms in the West.
Conservative councillors on Bath & North East Somerset Council say that as well as being too great a financial risk it is potentially not in taxpayers' interests.
The decision in principle to lend £500,000 to a "community benefit society" building a solar farm has now been called in for scrutiny.
The loan decision was made by Councillor Paul Crossley, leader of the Liberal Democrat-controlled council, and Councillor David Bellotti, the Cabinet member for community resources on the understanding that it would be subject to due diligence.
The cross-party Policy Development and Scrutiny Panel for Resources will review the decision on September 29, after ten councillors formally asked for the call-in. Members of the public who want to speak at the meeting, which will be held at the Guildhall, and start at 10am, should contact Democratic Services on 01225 394411 by 5pm on September 24.
Conservatives have questioned how the authority can afford to give away such a large sum of money at a time of tight finances and cutbacks to local services. They also say their research shows the credit limit recommended for Bath and West Community Energy Ltd, by ratings agency D&B is only £15,000.
The enterprise is a community benefit society committed to developing and installing low carbon energy generation projects for the benefit of the local community. It owns and operates ten solar pv sites in Wiltshire and Bath & North East Somerset. The green electricity produced directly benefits all those who use the buildings. Eight of the sites are in local schools.
The loan is to help with the provision of solar farm at Wilmington, and would be made using money from the council's £1 million Green Investment and Jobs Fund, set-up in February.
However Conservatives have questioned the number of permanent local jobs that will be created.
Conservative councillor Liz Richardson, who is leading the call-in of the decision, said: "We fully support efforts by the council to cut carbon emissions and increase the use of renewable energy in the area. But it's also extremely important that taxpayers' money is spent wisely, especially at a time of tight finances and when the council is cutting back on local services like public toilets.
"We are concerned that the council has not exercised due diligence before taking the in-principle decision to award this loan. This should be done before the decision is taken, not after.
Conservative leader, Councillor Tim Warren, added: "Why is it necessary for the council to loan this money to the company rather than a bank? And why were no other options considered for using this money in a way which supported the creation of a larger number of jobs, or generated a greater return for the council?"
Councillor David Martin, member for energy and climate change said: "The proposed loan to this solar farm array is being made to support the development of renewable energy in the area. The project would provide sufficient electricity to power over 600 homes."