The United Kingdom has kicked off the first project of its new state-owned renewable energy company. Great British Energy will start by installing solar panels in 200 public hospitals and 200 schools, with a strong focus on deprived regions.

The initiative, part of the Government’s Plan for Change, involves a total investment of 200 million pounds: 100 million for nearly 200 NHS sites, and 80 million for 200 schools.

“Great British Energy will provide power for pupils and patients,” says Energy Secretary Ed Miliband. The goal, he explains, is to lower energy bills for public institutions and reinvest the savings into frontline services.

This initiative comes amid soaring energy costs. The NHS alone spends over 1.4 billion pounds annually on electricity, more than double the 2019 figure. According to Government estimates, this project could generate savings of up to 400 million pounds over the next 30 years.

The average hospital could save up to 45,000 pounds a year, while a typical school could cut 25,000 pounds off its annual energy bill, especially if solar is combined with complementary technologies such as battery storage.

Model cases: Leeds, Hull and Wolverhampton

The potential of solar in the public sector is already evident. Leeds Teaching Hospitals NHS Trust installed a solar canopy at Wharfedale Hospital’s car park, cutting 43.7 tonnes of CO₂ annually and saving 75,000 pounds a year.

Hull University Teaching Hospital, with 11,000 solar panels, reportedly saved 250,000 pounds a month last summer. Meanwhile, Royal Wolverhampton NHS Trust’s new solar farm on a former landfill site is expected to power the entire hospital for 288 days a year, resulting in savings of 15–20 million pounds over two decades.

A growing solar market: cost-competitive and scalable

The UK offers strong conditions for solar growth. According to the UK Solar PV Power Market Outlook 2024–2033 by Renewable Market Watch™, the country will steadily expand its installed solar capacity through to 2033, supported by public auctions, corporate PPAs and favourable regulation.

The report also highlights the UK’s competitive levelised cost of energy (LCOE) for solar PV, making it a cost-effective option for public buildings with significant daytime energy demand.

Skills and jobs: empowering the next generation

“With this investment, we’re backing our teachers and delivering for young people,” says Education Secretary Bridget Phillipson. Each regional school cluster will include a further education college, working with contractors to promote green skills and careers in renewables.

Initiatives will include work placements, workshops and skills boot camps, especially targeting young people in economically disadvantaged areas.

Community participation and territorial equity

Beyond hospitals and schools, the plan includes 12 million pounds to support community-led clean energy projects, such as onshore wind and hydropower. An additional 9.3 million pounds will be allocated to Scotland, Wales and Northern Ireland, extending the impact across all four UK nations.

“This is a win-win-win: it cuts carbon, cuts costs, and gives back to our communities,” says Dr Richard Smith, Chair of the UK Health Alliance on Climate Change.

Private sector joins the transition

Private players are eager to engage. Mark Apsey, Senior Vice President at Ameresco, states that “energy efficiency and decentralised renewables are the most cost-effective ways to decarbonise the energy system”. Charles Wood, from Energy UK, emphasises the replicability of these projects at a local level.

This interest is fuelled by scale: Great British Energy is expected to mobilise 8.3 billion pounds over this Parliament, from small-scale community initiatives to large-scale industrial clean energy developments.

Resilience, public value and climate leadership

This public solar rollout aims not only to cut emissions and save costs, but also to shield public services from global energy price volatility, foster community engagement, and educate future generations on sustainability.

“It’s about designing in sustainability and designing out missed opportunities,” summarises Minnie Moll, Chief Executive of the Design Council. Solar installations on public buildings, she adds, are a concrete way to reimagine public infrastructure and improve everyday life for patients, pupils and staff.