The UK government and state-owned firm GB Energy will invest £200 million to install rooftop solar panels on schools and NHS sites, predominately in England.
It is the first major project announced for Labour’s flagship GB Energy, and it comes as the company continues its search for a permanent chief executive.
The Department for Energy Security and Net Zero (DESNZ) said the investment in rooftop solar projects will help the schools and NHS trusts save “hundreds of millions on their energy bills”.
The funding includes £80m to support rooftop solar for around 200 schools in England, alongside a further £100m for nearly 200 NHS sites.
Meanwhile, there will be £9.3m funding for devolved governments to use for renewable energy schemes on either public sector buildings or new community projects.
This includes £4.85m for Scotland, £2.88m for Wales and £1.62m for Northern Ireland.
GB Energy community funding
Elsewhere, community energy groups will be able to apply for a share of £5m in grant funding for local clean energy projects.
There will also be £6.8m in funding included for existing local net zero hubs across England.
A DESNZ spokesperson told Energy Voice that GB Energy will commit £90m from its initial £8.3bn budget to fund the solar partnership
This includes £50m for NHS hospitals and £40m for schools, with the health and education departments providing match funding.
© Supplied by Milton Keynes UniverMeanwhile, the £20m allocated for community groups and devolved governments will come from GB Energy’s budget.
The government allocated an additional £50m in funding for GB Energy on top of its existing funding to deliver the solar scheme and its first-year investments, the spokesperson said.
Chancellor Rachel Reeves had allocated £100m for GB Energy over its first two years as part of the government’s first budget in October.
It comes amid reports that the Labour government is considering cutting the £8.3bn budget for GB Energy amid efforts to increase UK defence spending.
However, the DESNZ spokesperson told Energy Voice the government “remains fully committed” to the GB Energy budget.
Solar energy for schools and hospitals
DESNZ said the NHS is the “single biggest public sector energy user” in the UK, with an estimated annual energy bill of £1.4bn.
The government said the GB Energy investment “could see millions invested back into frontline services”, with the project targeting socio-economically deprived areas.
Overall, the government said the project could see lifetime savings for schools and the NHS of up to £400m over close to 30 years.
Currently, only about 20% of schools and under 10% of hospitals have solar panels installed, according to the government.
UK energy secretary Ed Miliband said money for schools and hospitals is currently “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,” he said.
© Kenny Elrick/DC ThomsonLast year, Miliband vowed to push for a “rooftop revolution” as part of efforts to triple the UK’s solar energy capacity by 2030.
Meanwhile, education secretary Bridget Phillipson said the installation of solar panels will support pupils to develop green skills and promote careers in renewable energy.
GB Energy chairman Juergen Maier said the project is a “first step” in the publicly-owned company’s efforts to 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,” Maier said.
“We will work closely with communities to learn from the scheme so we can scale up energy projects across the country.”
GB Energy focus
Earlier this year, Maier listed long duration energy storage and floating offshore wind as key priorities for GB Energy’s initial investments.
Interim GB Energy chief executive Dan McGrail told Energy Voice his priority in the role will be narrowing down its list of potential investment areas.
Delivering smaller-scale community energy projects is another focus for GB Energy, with the company’s founding statement committing to support the delivery of Labour’s local power plan.
GB Energy’s start-up board also includes British Hydropower Association (BHA) chief executive Kate Gilmartin, who was previously a founding member of trade body Community Energy England.
But Scotland’s energy minister Gillian Martin has previously said she does not want to see GB Energy “reinvent the wheel” in areas like community energy, where the Scottish government has already invested in bodies like Local Energy Scotland.
