The pro's and con's of installing solar panels in schools and colleges

Last year the DfE published guidance to help schools access the funding they need to plan for and decarbonise their buildings. It has set a target to reduce greenhouse gas emissions by 75% by 2037 across education settings. 

Having a climate action plan is the first step for individual schools and colleges to take. The DfE suggests that head teachers prioritise the actions they need to take as follows: 

1. Making their school as energy efficient as possible by insulating, controlling how much energy used and adopting energy efficient equipment
2. Replacing fossil fule boilers with low-carbon alternatives such as heat pumps; and
3. Installing renewable generation such as solar PV.

This post focuses on solar panels. 

Benefits of solar panels

The DfE believes that solar panels provides the greatest average savings on fuel bills across a range of measures: 

Funding options

The initial outlay is considerable, and most schools and colleges will need to look at the options available to them. 

The Great British Energy Initiative (GBEI) is a £200 million government backed scheme, launched in March 2025, to boost renewable energy across the UK. The program aims to fund solar panel installations for 200 schools and 200 NHS sites, with £80 million of the fund earmarked specifically for schools. It targets schools and hospitals with buildings that can accommodate solar panels, particularly in areas of England most in need, primarily in the North East, West Midlands, and North West. The government has pre-selected the schools that will benefit from the initiative, with 11 schools having already received their funding in June. The remaining schools set to benefit will be announced soon, with all installations expected to be completed by the end of the year.

Additionally, local authorities and councils offer support for solar panel installations. For instance, South Gloucestershire Council has agreed to install solar PV systems on all its council-run schools and buildings over 2025 and 2026, funded through borrowing over the next 19 years. And Herefordshire Council offers an interest-free loan for the full or partial cost of energy efficiency measures, including solar PV installations.

Several companies also offer solar PV installation at no upfront cost as part of various schemes. Electron Green, for example, offers UK schools a solar PV system installed at no cost, covering everything from design and installation to ongoing maintenance and insurance schools pay for the solar electricity they consume. Similarly, Shawton Energy offers fully funded solar PV for the education sector, estimating significant savings on electricity bills. 

There are plenty of other providers and schools and colleges will need to undertake proper checks on companies before reaching a decision.

Examples of Cost Savings

The cost savings from solar panel installations can be substantial. The GBEI estimates that schools could save £25,000 annually through the installation of solar panels along with complementary technologies such as batteries. However, the actual savings can vary depending on the size and energy consumption of the school. For example, the yearly savings for schools that have already received panels through the GBEI range from £4,500 to £44,500 per annum, with payback periods of between 5 and 12 years.

Other case studies also highlight significant savings. A primary school in Great Yarmouth saved £21,211 per annum, amounting to £530,281 over the 25-year contract. Similarly, a high school in Bolton saved £35,000 annually, while a secondary school in Manchester saved £15,800 annually. And an independent day school in Macclesfield saved £85.6k annually and lifetime savings of £2.14m. These examples demonstrate the substantial financial benefits that solar panels can bring to schools.

How long do they last?

Solar panels have a long lifespan, typically lasting between 25 to 30 years. This means that the initial investment can provide long-term financial benefits. With average savings of £25,000 per year, it would take the government 16 years to recoup its investment in the GBEI, while the panels continue to generate savings for an additional 9 to 14 years.

How we can help

Irwin Mitchell is well placed to help organisations navigate the complex and evolving regulatory landscape for delivering renewable energy schemes. Our experts are located throughout England and are experienced in advising on a wide range of energy related projects, and in 2023 we invested in Scottish law firm Wright Johnston & Mackenzie, a leading provider of legal services to the renewable energy sector.

Our multi-disciplinary team has acted on some of the largest renewable energy schemes in the UK and together we are able to provide clients with the legal support and advice needed at all stages of the project lifecycle, and ultimately to bring these schemes to life.           

Find out more about our renewable energy credentials here and if you would like to get in touch, please contact Stelios Coutsavlis or Claire Petricca-Riding.

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