Hundreds of NHS trusts 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, the NHS, and devolved governments to install solar panels, build local clean power. and bring down energy bills.

In England around £100m of funding will support nearly 200 NHS sites, covering a third of NHS trusts, to install rooftop solar panels, with potential to sell leftover energy back to the grid.

The first panels are expected to be in hospitals by the end of this summer, saving money for the next academic year.

Increased spending

The announcement comes as hospitals 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.

The NHS is the single-biggest public sector energy user, with an estimated annual energy bill of £1.4bn, a figure which 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 the NHS and schools of up to £400m over around 30 years.

Estimates suggest that the average NHS site could save up to £45,000 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.

Reinvesting on the frontline

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.”

Minister of State for Health, Karin Smyth, added: “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.”

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 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.

And 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 £15m-20m over the next two decades.

The support will target hospitals with buildings that are able to accommodate solar panels in areas of England most in need.

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 £8.3bn 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.

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Charles Wood, deputy director at Energy UK, said: “It’s great news to see hospitals benefitting first from this commitment to local and community energy projects.

“Cutting energy bills not only means more funding for these essential public services, but also shows how the shift to clean energy can directly benefit local communities and give them a real stake in such initiatives.

“We hope that these projects are just the start of a real growth in community-led energy, creating jobs, boosting growth, and lowering energy costs by making the most of local resources.”

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, the NHS has 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.”

Commenting on the announcement, Saffron Cordery, interim chief executive of NHS Providers, said: “Spiralling energy costs have landed NHS trusts with huge bills at a time when they can least afford it.

“The measures are good for NHS trusts, good for the environment, and good for taxpayers.”

The full list of hospitals benefitting from funding can be accessed here.

The panels could be installed on hospital rooftops or ground mounted in car parks or other areas on NHS sites.