Sector - Energy, Fuel & Utilities
Clean energy investment across public estate
18 Feb 26

The UK government has announced a significant investment of £74 million to advance clean energy solutions across a range of public buildings, with a particular emphasis on the healthcare sector. The initiative, championed by the Department for Energy Security and Net Zero and supported by Great British Energy, aims to achieve substantial reductions in energy costs for hospitals as well as selected military installations and a prison facility, thereby redirecting consequential savings into essential frontline services.
Specifically, eighty-two NHS Trusts, eight military bases, and one prison will benefit from the deployment of advanced energy efficiency technologies. Hospitals will see the installation of upgraded lighting systems, solar panels, and heat pumps designed to lower ongoing utility expenses and reduce carbon emissions. Notably, Lincoln County Hospital is set to receive over £1.2 million to expand its solar infrastructure, enabling the facility to harness renewable energy on-site. Similarly, The Harbour mental health hospital in Blackpool will be allocated £590,000 for the implementation of state-of-the-art battery storage technology, enhancing the integration of intermittent renewable sources and further decreasing reliance on grid electricity.
The projected impact on the NHS is particularly pronounced, with over 190 sites expected to collectively save nearly £30 million annually in energy expenditures. These retained funds are earmarked for reinvestment into healthcare provision, thereby improving patient services and supporting staff while facilitating long-term operational resilience. Military bases in both England and Scotland, including key RAF stations such as Lossiemouth, Waddington, and Marham, are also slated to benefit from energy usage upgrades, yielding operational cost reductions. Furthermore, HMP Channings Wood in Devon will receive nearly £500,000 for solar panel installation and an additional sum for necessary electrical and plumbing improvements aimed at maximising energy retention.
Central to the funding strategy is a partnership with Great British Energy, which will deliver £9 million for the installation of batteries and solar panels. This commitment builds on the company’s prior investment of £255 million in clean technologies for hospitals, schools, and defence facilities during the previous year.
By channelling these savings back into healthcare and armed forces delivery, the initiative presents clear opportunities for suppliers of energy-efficient technologies, construction contractors with expertise in renewable energy installations, and service providers specialising in building refurbishment and energy management. The government’s focus on operational efficiency and sustainability in public infrastructure demonstrates a robust pipeline for new business in the UK construction and energy services market, with a marked emphasis on the health sector’s transition to a low-carbon future.
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