From October 2026, 150 more English schools will pilot a zero-upfront-cost solar model, where private investors fund, install, own and maintain panels while schools buy the electricity at a discounted rate. Secondary schools with solar and LED lighting already save £58,600 a year on average; primaries save £21,000.
TL;DR · LAST REVIEWED 16 Jul 2026
- The government announced on 16 July 2026 that 100 more schools will join the existing Great British Energy Solar Partnership, backed by up to £40 million.
- A separate new pilot will see 150 schools and colleges across Yorkshire & Humber, the East Midlands and the South East get solar funded entirely by the private sector at no upfront cost.
- Under the private-sector model, a third-party investor funds, installs, owns and maintains the panels, and the school simply buys the electricity generated at a rate below its normal tariff.
- Secondary schools that have installed solar plus LED lighting are already saving £58,600 a year on average; primary schools are saving £21,000.
- Several established UK providers already deliver solar PPAs to schools, including Solar Options for Schools, named directly in the government's announcement.
KEY FACTS
- 245 schools and colleges already have government-funded solar via the Great British Energy Solar Partnership
- 100 more schools joining, backed by up to £40 million
- 150 schools/colleges piloting the new zero-upfront private-sector PPA model (Yorkshire & Humber, East Midlands, South East)
- Secondary schools with solar + LED average £58,600/year savings; primaries average £21,000/year
- Total Great British Energy Solar Partnership investment: up to £255 million (schools, colleges, NHS and military sites)
- National PPA rollout targeted for all schools/colleges from 2027-28
- DfE's 2025 pause on school solar PPAs was lifted in January 2026, reopening this funding route
The Government's Two-Track Solar Programme for Schools
The 16 July 2026 announcement from the Department for Education, Department for Energy Security and Net Zero and Great British Energy actually covers two separate funding tracks. The first is an expansion of the existing Great British Energy Solar Partnership, which already has 245 schools and colleges fitted with government-funded solar, and will now add 100 more, backed by up to £40 million of government investment. The second, newer track is a private-sector solar pilot covering 150 schools and colleges across Yorkshire & Humber, the East Midlands and the South East, where installation is entirely funded by private investment rather than public money. These are different mechanisms with different funding sources, and the private-sector pilot is the one expected to inform a wider national rollout from 2027-28, with the stated ambition that every school and college in England will eventually be able to access solar.
What a Solar Power Purchase Agreement Actually Is
A solar Power Purchase Agreement (PPA) is a long-term contract in which a third-party investor funds, installs, owns and maintains a solar system on a site's roof or land, and the site simply buys the electricity that system generates at an agreed rate, typically well below the standard grid import price. Because the school, college or business does not pay for the equipment or installation, a PPA removes the capital cost barrier that has historically stopped many organisations investing in solar even where it would clearly pay for itself over time. UK solar PPAs commonly run for 10 to 25 years, with the site paying only for the electricity used and, in most structures, three standard options at the end of the term: extend the agreement, buy the system at its fair market value, or have it removed. In the government's private-sector school pilot specifically, schools, colleges and the government will not pay a penny upfront; private investment funds, installs, owns and maintains the panels, subject to quality checks, and schools buy the electricity generated at a rate significantly cheaper than their normal tariff.
Why This Funding Route Matters Now
Until recently, most state-funded schools financed solar through the Public Sector Decarbonisation Scheme (PSDS), a capital grant administered by Salix Finance and usually bundled with a heat pump project. PSDS is now closed to new applications, with its fourth and final phase closing in November 2024 and no further funding committed beyond projects already awarded. Separately, a temporary pause on school solar PPAs introduced in 2025, which had affected some state-funded schools and academy trusts, was formally confirmed lifted by the Department for Education in a January 2026 Parliamentary response. Together, these two changes mean that a PPA is now, for most schools without an existing PSDS award, the practical route to installing solar without diverting money from teaching budgets, which is precisely the gap today's private-sector pilot is designed to fill at scale.
Which Companies Are Already Delivering School Solar PPAs
The government's own announcement names Solar Options for Schools directly, quoting its CEO and founder Robert Schrimpff, who states the organisation has worked with schools and the Department for Education for a decade. Beyond the company named in the release, several other UK providers are already active in delivering solar PPAs specifically to the education sector. Kembla has delivered a 450kWp solar PPA across five schools within Education Impact Trust, forecasting more than £36,000 saved in the first year alone and close to £950,000 over 20 years. Spectrum Energy Systems, an MCS-certified and NICEIC-approved installer and RECC member, designs and delivers school solar projects funded through capital budgets, PPAs or existing PSDS awards, and works through public-sector procurement routes including Crown Commercial Service frameworks. Spirit Energy and AR Power are established commercial solar PPA providers whose client base includes schools and other public-sector sites alongside private businesses. Larger commercial and utility-scale solar PPAs in the UK are also arranged through energy-supplier corporate-PPA desks and specialist infrastructure funds, though the school-specific end of the market is served mainly by smaller specialists focused on that sector.
What Schools and Trusts Should Check Before Signing a PPA
Any school or trust considering a solar PPA should confirm the installer holds the accreditations typically required for public-sector procurement, including MCS certification, NICEIC approval and RECC membership. It is worth understanding which procurement route applies, since options generally include Crown Commercial Service frameworks such as RM6314, local authority renewable energy frameworks where available, or direct award below the relevant procurement thresholds for smaller projects. Schools should also clarify the tariff structure and whether it includes an annual escalator, confirm the three end-of-contract options available to them, and, where the panels sit on a leasehold building, check that the remaining lease term covers the full length of the proposed PPA.
RELATED GUIDES
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
What is the difference between the Great British Energy Solar Partnership and the new private-sector pilot?
The Great British Energy Solar Partnership is funded with government investment, up to £255 million in total across schools, colleges, NHS and military sites, and already covers 245 schools and colleges. The new pilot is funded entirely by private investment, covering 150 schools and colleges across three regions, with no government or school money used to pay for the panels themselves.
Do schools pay anything upfront for a solar PPA?
No. Under a solar PPA, a private investor funds, installs, owns and maintains the system. The school pays only for the electricity the system generates, at a rate below its normal tariff, with no upfront capital cost.
Why did school solar PPAs pause in 2025, and are they available again now?
A temporary pause introduced in 2025 affected some state-funded schools and academy trusts considering PPAs, related to how long-term PPA arrangements are treated under public sector borrowing rules. The Department for Education formally confirmed in a January 2026 Parliamentary response that the pause is no longer in effect and schools can proceed with PPA projects.
How much can a school realistically expect to save?
The government states that secondary schools which have installed solar alongside LED lighting upgrades are saving £58,600 a year on average, and primary schools £21,000 a year on average. Actual savings for any individual school depend on system size, roof space, daytime electricity demand and the specific tariff agreed.
Which companies deliver solar PPAs to UK schools?
Solar Options for Schools is named directly in the government's July 2026 announcement. Other established UK providers active in the schools and public-sector PPA market include Kembla, Spectrum Energy Systems, Spirit Energy and AR Power, alongside larger commercial solar PPA providers that also serve public-sector and business clients.
SOURCES
- GOV.UK - Hundreds more schools to save on bills as government solar drive slashes millions off energy costs – accessed 16 Jul 2026
- Department for Education - Get help buying for schools: Energy – accessed 16 Jul 2026
- GOV.UK - Great British Energy – accessed 16 Jul 2026
