Great British Energy to cut bills for hospitals and schools
Source: gov.uk (2025-03-21)

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 today (Friday 21 March) announced the first major project for Great British Energy - a company owned by the British people, for the British people. 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 2 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 Great British 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.

Chris Hewett, Chief Executive of Solar Energy UK, for the press release on Great British Energy’s solar investment.

This is a very wise piece of public investment. Slashing bills while cutting emissions is exactly why Great British Energy was established. Just like households, schools and hospitals alike have been beset by high energy bills over recent years, pulling precious funds from where they should be going. So every penny put into solar photovoltaics and energy storage for public buildings means more cash for the services we all depend on – and help teach the next generation the value of renewable energy.

Stew Horne, Head of Policy at Energy Saving Trust said:

Today’s announcement marks a positive first step for Great British Energy. We’re pleased the UK government has used this opportunity to demonstrate its commitment to accelerating local and community energy projects.

Using public buildings is an effective way to rapidly roll out solar, contributing to the clean power mission and the 8 GW local power plan target. Reinvesting savings from cheap, local power into public services will also demonstrate that communities can feel tangible benefits from the shift to renewables. The focus on installing solar panels in disadvantaged areas is welcome to support a fairer energy transition, in which everyone can benefit.

We now look forward to helping the UK government to shape the Local Power Plan to ensure it supports the community energy sector to grow. We know from our first hand experience delivering the Scottish Government’s Community and Renewable Energy Scheme and the Welsh Government Energy Service, the importance of end-to-end advice for communities to develop impactful projects and we hope to see the same focus in England.

Trevor Hutchings, CEO of the Renewable Energy Association, said:

I welcome this announcement as it will reduce emissions from our schools and hospitals and save millions on energy bills. It will also help engage and excite our young people on net zero and the clean technologies of the future. Leadership on decarbonising the huge public sector estate is essential, and we would encourage Great British Energy to go further and faster, especially in innovative areas where mainstream sources of funding are less available, such as decarbonising heat and transport.

Dr Richard Smith, Chair of the UK Health Alliance on Climate Change said:

Great British Energy putting solar panels on hospitals and schools is win-win-win because it will cut carbon and costs, put the savings back into the NHS and education, and make the NHS and schools less dependent on the waywardness of the energy market.

Alex Green, Head of Let’s Go Zero, the zero carbon schools campaign run by climate solutions charity, Ashden, says:

The huge potential of Great British Energy has always been about giving citizens and communities a real stake in—and direct benefit from—the clean growth story of the 21st century. It’s great to see the first steps in that vision taking shape in schools and hospitals, which sit at the heart of every community.

At Let’s Go Zero we see solar on schools is a proven success—cutting bills, inspiring young people, and strengthening vital public services. Schools often lead local clean energy initiatives, partnering with community energy groups or local authorities. These efforts rely heavily on school fundraising, but with greater government support, they can scale more quickly and effectively. The support announced today from Great British Energy will help schools across the country replicate these initiatives, helping the schools save much needed funds as well as being proactive on reducing carbon emissions.

Embedding behaviour change alongside renewable energy investments is also key to unlocking their full potential. When staff and students are actively involved in energy-saving habits and sustainability initiatives, schools maximise savings, deepen learning, and create a culture of climate action that extends beyond the school gates. Let’s Go Zero look forward to supporting the government to realise this potential.

Saffron Cordery, interim chief executive of NHS Providers, said:

Spiralling energy costs have landed NHS trusts with huge bills at a time when they can least afford it. The measures announced today are good for NHS trusts, good for the environment and good for taxpayers.

Chris Morris, the Local Energy Scotland Manager said:

This is an exciting opportunity for Scottish communities to be part of the energy transition. Funding through Scottish Government’s Community and Renewable Energy Scheme will be announced on our website in due course and we look forward to working with Scottish communities to realise their energy ambitions.

Mark Apsey, Senior Vice President at Ameresco, said:

We are excited to witness this initial investment by Great British Energy into practical measures that will significantly reduce energy bills for schools and hospitals nationwide. Our teams are eager to support the delivery of these carbon-saving projects, building on over a decade of successful energy conservation initiatives across the UK. Energy efficiency and decentralised renewable generation are the most cost-effective ways to decarbonise our energy system while creating valuable local jobs. It is encouraging to see Great British Energy prioritising these efforts.

Minnie Moll, Chief Executive, Design Council said:

Great British Energy’s first big initiative of putting solar panels in schools and NHS sites is simple and smart. This initiative isn’t just about energy, it’s about reimagining public spaces, thinking differently and being creative with solutions. It’s about designing in sustainability and designing out wasted opportunity.

By integrating renewable energy into public infrastructure with thoughtful, people-centred design, we can create spaces that are not only energy-efficient but also improve the quality of life for students, patients, and staff.

Charlotte Bonner, Co-Lead for Climate Ambassadors:

We welcome this significant investment in solar panels for schools, which marks an important step in decarbonising the education estate. It’s great to see Great British Energy focus on education through one of its first initiatives, given the critical role of the sector in enabling sustainability action.

Through the Department for Education funded Climate Ambassadors programme, we are supporting education settings from early years to further education colleges embed sustainability across their entire ethos – from buildings to biodiversity, from curriculum to careers. This funding should not only transform school rooftops but also inspire young people to be changemakers in their communities. Schools are central to wider local climate action planning, and we look forward to working with our volunteers and the education settings they work with to ensure this investment is maximised for long-term impact.

Notes to editors

Great British Energy Solar:

The full list of hospitals benefitting from funding is included below. Solar panels could be installed on hospital rooftops or ground-mounted in car parks or other areas on NHS sites. Further details on the schools benefitting will be set out in the spring following feasibility assessments.
- Great British Energy Solar: list of hospitals (https://assets.publishing.service.gov.uk/media/67dd2e0370323a45fe6a6f0e/gbe-nhs-solar-projects.csv) (CSV, 8.76 KB)
Great British Energy Community Fund:

The government and Great British Energy are also providing funding to kick start Great British Energy’s support for community energy projects. Community energy groups will be able to access a share of £5 million in grant funding to support projects that will help communities generate their own clean power. This will build on funding to back projects including a new hydro-power technology in the River Dane to generate renewable energy for homes and businesses in Congleton, Cheshire.

Local Net Zero Hubs:

The government is providing £6.8 million for existing Local Net Zero Hubs located across England, which offer a free to use service for local authorities to access the expertise and resource to get clean energy projects up and running, helping to pave the way for more community energy projects. The hubs are already supporting projects ranging from a new zero carbon hospital in West Suffolk, to a low Carbon Technology Centre in Herefordshire that will help local workers develop new skills in the clean energy sector.

Scotland, Wales and Northern Ireland community energy funding:

Over £9.3 million funding for the devolved governments will be used for renewable energy schemes which can be deployed either onto public sector buildings or to support new community or local renewables schemes. This includes £4.85 million for Scotland, £2.88 million for Wales and £1.62 million for Northern Ireland.

The government has already announced an unprecedented partnership between Great British Energy and The Crown Estate to unlock investment in clean energy, confirmed Aberdeen will host Great British Energy’s headquarters, and struck a deal with the Scottish Government for the company to work with Scottish public bodies to support clean energy supply chains.

Great British Energy:

The members of Great British Energy’s start-up board met in Aberdeen on Monday 17 March for the first time, including Chair Juergen Maier, interim CEO Dan McGrail and the 5 non-executive directors. The government is also legislating through the Great British Energy Bill to give the company the powers it needs to rapidly deliver.

Great British Energy will support the government’s mission for clean power by 2030, with an action plan published in December to get more homegrown clean power to people and provide the foundation for the UK to build an energy system that can bring down bills for households and businesses for good.

NHS:

In October 2020 the NHS made a commitment to be net zero by 2040 for the emissions it directly controls and by 2045 for the emissions it influences.

Estates and facilities account for 15% of the NHS carbon footprint, and the NHS is the UK’s largest single public energy user, with an estimated annual energy cost of nearly £1.5 billion.