Hundreds of schools across the UK will benefit from new rooftop solar power and renewable schemes to save money on their energy bills, following a £200m investment from the UK government and Great British Energy.

In another step forward for the Government’s Plan for Change, the Energy Secretary, Ed Miliband, announced on Friday 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 and devolved governments to install solar panels, build local clean power, and bring down energy bills.

In England around £80m in funding will support around 200 schools 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 by the end of this summer, saving money for the next academic year.

Rocketing bills

Schools have been hit with rocketing energy bills in recent years, costing taxpayers millions of pounds and eating into budgets.

This has been driven by the UK’s dependency on global fossil fuel markets.

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 £400m over around 30 years.

Estimates suggest that on average, a typical school could save up to £25,000 per year on its 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 £12m 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 energy bills.

A further £9.3m will power schemes in Scotland, Wales, and Northern, Ireland including community energy or rooftop solar for public buildings.

Saving at the school gates

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, added: “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.”

And Great British Energy chairman, 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.”

Targeting deprived areas

Currently only about 20% of schools have solar panels installed, but the technology has huge potential to save money on bills.

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.

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 £8.3bn 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 on Friday, 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, chief executive 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, added: “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.”

Private funding

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.

Chris Hewett, chief executive of Solar Energy UK, said: “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 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, added: “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.”

Huge potential

Following the announcement, Alex Green, head of Let’s Go Zero, the zero-carbon schools campaign run by climate solutions charity, Ashden, said: “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, 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 pro-active 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 looks forward to supporting the Government to realise this potential.”