Great British Energy announces solar projects for schools and NHS sites

ON Friday 21 March, 2025 the Energy Secretary annonced that as part of the government’s Plan for Change, the first major project for Great British Energy is to put rooftop solar panels on around 200 schools and 200 NHS sites. The savings on energy bills are estimated to amount to hundreds of millions, which will be reinvested in schools and NHS as part of the 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 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.

The government conforms that schools and hospitals have been hit with rocketing energy bills in recent years, costing taxpayers millions of pounds, eating into school budgets and 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. Whilst 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.

This article is based on the government press release "Great British Energy to cut bills for hospitals and schools" dated 21 March 2025.

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