Great British Energy's first project will put rooftop solar panels on 200 schools and 200 hospitals - cutting energy bills

• First major project for Great British Energy is to put rooftop solar panels on around 200 schools and 200 NHS sites, saving hundreds of millions on their energy bills
• Savings will be reinvested in schools and NHS as part of the government’s Plan for Change to fix public services – providing power for pupils and patients
• Great British Energy will also partner with community groups and the devolved governments to fund ambitious local clean power projects across the UK

Hundreds of schools, NHS trusts and communities across the UK will benefit from new rooftop solar power and renewable schemes to save money on their energy bills, thanks to a total £200 million investment from the UK government and Great British Energy.

In another step forward for the government’s Plan for Change, the Energy Secretary has announced the first major project for Great British Energy. It will immediately begin working with schools, the NHS, and devolved governments to install solar panels, build local clean power and bring down energy bills.

In England around £80 million in funding will support around 200 schools, alongside £100 million for nearly 200 NHS sites, covering a third of NHS trusts, to install rooftop solar panels that could power classrooms and operations, with potential to sell leftover energy back to the grid. The first panels are expected to be in schools and hospitals by the end of summer 2025, saving schools money for the next academic year.

Schools and hospitals have been hit with rocketing energy bills in recent years, costing taxpayers millions of pounds, and eating into school budgets. This has been driven by the UK’s dependency on global fossil fuel markets. The NHS is the single biggest public sector energy user, with an estimated annual energy bill of £1.4 billion, that has more than doubled since 2019.

Great British Energy’s first investment could see millions invested back into frontline services, targeting deprived areas, with lifetime savings for schools and the NHS of up to £400 million over around 30 years.

Estimates suggest that on average, a typical school could save up to £25,000 per year, whilst the average NHS site could save up to £45,000 per year on their annual energy bill if they had solar panels with complementary technologies installed such as batteries.

In addition, local authorities and community energy groups will also be supported by nearly £12 million to help build local clean energy projects - from community-led onshore wind, to solar on rooftops and hydropower in rivers – that can help drive growth. These could generate profits which could then be reinvested into community projects or take money off people’s bills. A further £9.3 million will power schemes in Scotland, Wales and Northern Ireland including community energy or rooftop solar for public buildings.

Energy Secretary Ed Miliband said: 
"Right now, money that should be spent on your children’s education or your family’s healthcare is instead being wasted on sky-high energy bills

"Great British Energy’s first major project will be to help our vital public institutions save hundreds of millions on bills to reinvest on the frontline. Great British Energy will provide power for pupils and patients.

"Parents at the school gate and patients in hospitals will experience the difference Great British Energy can make. This is our clean energy superpower mission in action, with lower bills and energy security for our country."

Education Secretary, Bridget Phillipson, said:
"With this investment we are backing our teachers and delivering for our young people – saving schools thousands on their bills to reinvest in a brilliant education for each and every child.

"The installation of solar will not only benefit schools financially, but will support pupils to develop green skills, promoting careers in renewables and supporting growth in the clean energy workforce.

"With tough choices needed when it comes to public finances, cuts to energy bills is just one part of our continued support for schools, providing better life chances for our children and delivering on the government’s Plan for Change."

Minister of State for Health Karin Smyth said:
"This investment in clean energy will power our NHS while saving the taxpayer millions in energy bills.

"Crucially, we will divert the savings to where it matters most for patients and staff - frontline services.

"As part of our Plan for Change, we are improving care for patients, boosting economic growth, and securing our country’s energy supply."

Great British Energy Chair Juergen Maier said: 
"This is the first step in Great British Energy’s work with local communities to help them generate their own energy.

"By partnering with the public sector as we scale up the company, this will help us make an immediate impact as we work to roll out clean, homegrown energy projects, crowd in investment and create job opportunities across the country.

"We will work closely with communities to learn from the scheme so we can scale up energy projects across the country."

Currently only about 20% of schools and under 10% of hospitals have solar panels installed, but the technology has huge potential to save money on bills. For example, Leeds Teaching Hospitals NHS Trust installed a solar canopy over the car park at its Wharfedale Hospital site that will reduce carbon emissions by 43.7 tonnes per year and save the trust £75,000 annually.

A large project at Hull University Teaching Hospital has 11,000 solar panels which saved it around £250,000 a month last summer. The Royal Wolverhampton NHS Trust’s new solar farm at a former landfill site is expected to power the entire hospital site with self-generated renewable energy for around 288 days a year - saving around £15-20 million over the next two decades.

The support will target schools and hospitals with buildings that are able to accommodate solar panels in areas of England most in need. As part of this, government will select the schools which will be primarily clustered in areas of deprivation in the North East, West Midlands and North West, as well as at least 10 schools in each region. Each cluster will include a further education college which will work with the contractors appointed to promote careers in renewables to support growth in the construction and renewables workforce. This could be through work placements, skills bootcamps and workshops.

Alongside this, the NHS ran an expression of interest process to identify the selected hospital sites, with installations managed by the NHS.

The funding will support the government’s clean power mission as well as helping to rebuild the nation’s public services. It forms Great British Energy’s first local investment, kickstarting the Local Power Plan and ensuring the benefits of this national mission are felt at a local level, with energy security, good jobs and economic growth. 

Backed by £8.3 billion over this Parliament, Great British Energy will own and invest in clean energy projects across the UK. This will range from supporting local energy - like the solar power schemes announced today - to unlocking significant investment in major clean energy projects that will revitalise the UK’s industrial heartlands with new jobs, alongside securing Britain’s energy supply.

Tom Campbell, CEO of E-ACT academy trust, said:
"This new Great British Energy solar scheme marks a vital step forward for schools across the country. At E-ACT, we’ve seen first-hand how solar energy can transform our schools by reducing carbon emissions, cutting energy costs, and creating lasting savings that we reinvest directly into our students’ education. With the scale of this initiative, hundreds of schools will now have the opportunity to achieve similar benefits, accelerating the journey to net zero while empowering young people to lead the way on sustainability."

Paul Whiteman, general secretary of school leaders’ union NAHT, said:  
"For many years, schools have been keen to lead the way when it comes to sustainable and greener energy. Some have already installed solar panels but most find it cost prohibitive. This announcement is therefore welcome and a step in the right direction. In the longer term, this should also help schools manage energy bills, which have been a source of enormous financial pressure in recent years."

Charles Wood, Deputy Director, Energy UK, said: 
"It’s great news to see schools and hospitals benefitting first from this commitment to local and community energy projects. Cutting energy bills not only means more funding for these essential public services but also shows how the shift to clean energy can directly benefit local communities and give them a real stake in such initiatives.      

"So we hope that these projects are just the start of a real growth in community-led energy, creating jobs, boosting growth, and lowering energy costs by making the most of local resources.  

"Reducing carbon emissions and protecting public health go hand in hand with decarbonising the public sector. Energy UK members remain committed to working with schools, emergency services, and public transport.

Private sector investment is key to delivering local and community energy projects across the country, and this year will be crucial in shaping how GB Energy can attract such funding to support them. The energy sector looks forward to sharing its expertise, capabilities, and investment to develop a robust community energy sector that benefits consumers, communities, and our economy."

KeyFacts Energy Industry Directory: GB Energy