New energy upgrades for public buildings to save taxpayers money
Source: gov.uk (2025-05-15)

Schools, community centres and care homes receive new awards to upgrade their buildings and save money off bills in the long term.

- Local community buildings will benefit from cheaper energy bills in the years to come, thanks to funding allocated by the government
- schools, community centres and care homes will benefit from upgrades, contributing to an estimated £650 million in savings for taxpayers per year on average to 2037
Pupils at schools, residents at care homes, and users of community centres will all be given a boost today, as the government allocates funding to help cut energy bills for public buildings in the years to come.

The social institutions that allow local communities to thrive, such as schools, hospitals, and care homes, will be given extra help to make energy saving upgrades and tackle costs, allowing more money to be spent on the services that people care about.

More than £630 million has been awarded for measures including heat pumps, solar panels, insulation and double glazing, helping to make Britain energy secure as part of the Plan for Change while contributing to an estimated £650 million in savings for taxpayers per year on average over the next 12 years.

The Liverpool City Region Combined Authority has been awarded over £30 million to install heat pumps at Queens Park Leisure Centre, Birkenhead Central Library and Chase Heys Home for the Elderly, while the Northumbria NHS Foundation Trust will receive more than £14 million to replace fossil fuel heating at two sites, helping power these pillars of the local community with cleaner, homegrown energy.

The Royal Air Force Museum Midlands will benefit from £1 million to install heat pumps and solar panels at one of its aircraft hangars, and Worcester City Council will receive £90,000 to upgrade the King George V Community Centre, which is used for employability training and youth activities, with new heat pumps, solar panels and double glazing.

The University of York has been awarded £35 million to capture energy from beneath the Earth’s surface to help deliver low-carbon heat to buildings on campus, while the National Portrait Gallery has been awarded over £5 million to switch to heat pumps in its main public gallery and Orange Street building, which houses the historic archives of the library.

Minister for Energy Consumers Miatta Fahnbulleh said:

Today we are providing even more support for Britain’s buildings – from schools to museums and galleries – helping to rebuild vital public services as part of the Plan for Change.

This investment will see local communities benefit from our sprint to clean power, with warm public buildings, run more affordably.

An extra £102 million from the Green Heat Network Fund will help to develop new and existing heat networks in England, including the Hemiko South Westminster Area Network (SWAN), which could help to decarbonise iconic landmarks like the Houses of Parliament using waste heat from the River Thames.

This follows Great British Energy’s first major project to put solar panels on around 200 schools and 200 NHS sites, helping them to reinvest savings on their energy bills in teaching and healthcare.

Vice-Chancellor Professor at the University of York Charlie Jeffery said:

Our geothermal project will be a powerful catalyst in our journey towards net zero, offering a significant reduction in carbon emissions and a greener future.

Beyond its crucial environmental impact, the site will serve as a living laboratory that will drive research, educate our students and bring benefits beyond our campus.

The support from the government is a vital catalyst for this transformative endeavour, which we believe will empower the next generation of sustainability leaders and deepen community understanding of renewable energy technologies.

Policy Manager at Energy UK Louise Shooter said:

High energy bills have been a big headache for schools, hospitals, leisure centres and other community facilities in recent years - so it’s great to see them being helped to install energy saving measures and other green technology that will cut energy costs permanently while also enabling them to do their bit to reduce emissions. Energy UK’s members have been helping schools and hospitals across the country do the same (https://www.energy-uk.org.uk/publications/energy-in-action-decarbonising-the-nhs-schools-and-public-transport/) and save money which means more funding for the essential services they provide. It’s a very tangible example of the benefits that come from investing in the switch to cleaner energy.

Head of External Affairs at ADE: Heat Networks Pablo John said:

Today’s investment in heat networks like the University of York’s geothermal project is a blueprint for Britain’s clean heat revolution. These networks capture every kilowatt of renewable energy and waste heat we produce, turning it into affordable warmth for consumers. York’s 78% cut in fossil fuels proves that when we back heat networks now - even outside of zones - we secure energy independence for good. Let’s build on this momentum by supporting heat network innovation everywhere and stop wasting the heat under our feet.

Director of Content and Programmes at the RAF Museum Karen Whitting said:

Warm thanks to the Department for Energy Security and Net Zero for their investment through the Public Sector Decarbonisation Scheme. This will enable us to introduce new, low/no-carbon technologies to a historic 1938 Type-C aircraft hangar as part of our Inspiring Everyone: RAF Museum Midlands Development Programme. The re-developed hangar will be used as a Learning Centre and exhibition gallery which will welcome and inspire around 500,000 visitors a year, sharing the nationally important Royal Air Force story. The project will make a major contribution to the RAF Museum’s Strategy including our commitment to achieving Carbon Net Zero.

Notes to editors

Decarbonising the public sector with low carbon heating and energy efficiency measures will save the public sector an estimated £650 million per year on average to 2037. The Public Sector Decarbonisation Scheme is contributing towards delivering these savings for public sector organisations.

Applications for Phase 4 of the Public Sector Decarbonisation Scheme opened in October 2024. Funding for this phase is worth approximately £940 million and will run until financial year 2027/2028. Some remaining funding awards will be issued in the coming weeks.

As of May 2025, the regional breakdown for Public Sector Decarbonisation Scheme Phase 4 funding is as follows:
- North East: £65,191,456
- Yorkshire and the Humber: £81,262,778
- North West: £116,815,617
- East Midlands: £73,405,602
- West Midlands: £84,306,700
- East of England: £29,149,553
- South East: £35,720,404
- South West: £30,002,246
- Greater London: £113,914,685
- Wales: £2,500,000
- Across Regions: £1,325,000
The Green Heat Network Fund supports new and existing heat networks in England to adopt low carbon technologies such as heat pumps, recovered heat, geothermal and energy from waste. A total of over £484 million in awards to 40 projects has been made public since the launch of the scheme in 2022.

The projects included in this announcement, which have been awarded a total of over £102 million in grant funding are:
- Derby Energy Network (Derby Energy Ltd): £23,240,000
- Bristol City Centre (Bristol Heat Networks/Vattenfall): £21,300,000
- SWAN (Hemiko): £21,000,000
- Lincoln (Hemiko): £15,508,000
- East London Energy (Bring Energy): £8,813,120
- Trafford Civic Quarter Heat Networks (Trafford Metropolitan Borough Council): £5,750,000
- West Bromwich Heat Network (Sandwell Metropolitan Borough Council): £4,939,421
- Mersey Biochar Heat Network (Severn Wye Energy Agency Ltd): £1,728,890