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.”
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.