The Department for Education's (DfE) pilot programme will install solar PV modules at approximately 150 schools and colleges as part of the initial phase of the renewal and retrofit initiative.
This pilot aims to assess how power purchase agreements (PPAs) can facilitate solar installations in schools, marking what has been described as a significant step in the UK's clean energy transition.
Zoe Stollar, a partner in energy and infrastructure at Browne Jacobson, emphasized that the PPA template must be carefully designed to avoid creating imbalances.
The installations will take place in the Yorkshire and Humber, East Midlands, and South East regions. The £710 million renewal and retrofit scheme targets projects in buildings that cannot be funded through existing maintenance budgets but do not yet require complete rebuilding.
The PPA pilot will test a model for attracting private sector investment in school solar installations, aiming to identify the most effective way to achieve value for money at scale, regardless of location or building type.
Under the DfE’s proposed PPA model, schools could benefit from solar installations without needing to provide upfront capital.
Other government efforts to address upfront costs include Great British Energy, the public energy company, which has provided capital for school solar projects.
Following this announcement, AMPYR Distributed Energy’s CEO John Behan wrote to the energy secretary and GB Energy chair, highlighting the potential for private sector investors to supplement government funding and pledging to match the state-owned company’s £180 million investment in public sector solar PV.
Rebecca Cullen, a senior associate at Browne Jacobson specializing in solar panel provision for education real estate, noted that energy bills are among the largest and most unpredictable expenses for many schools. The opportunity to secure electricity at rates below standard grid tariffs, with no upfront capital cost, is especially appealing for schools facing ongoing financial pressures.
As part of the pilot, DfE has created a PPA and land lease template to be tested within the sector before broader implementation. The department will consider applications for land consent for PPAs and related land leases up to and including 15 July 2026.
After 15 July 2026, any PPA for the school estate must use the DfE’s PPA and land lease template.
Browne Jacobson lawyers advise caution, with Stollar noting that while a standardized template can reduce transaction costs, speed up procurement, and provide private sector investors with the certainty needed to price risk competitively, it must be carefully calibrated.
Stollar added that schools and colleges are generally non-specialist parties in these agreements, so terms regarding tariff review mechanisms, step-in rights, roof condition warranties, and exit provisions must be fair and clearly understood by those signing.
Cullen echoed this sentiment, stating that school leaders and governors must approach these agreements with full awareness. A PPA is a long-term contractual commitment, typically lasting 15 to 25 years, involving a land lease over part of the school's roof and a new partnership with a private sector entity.
The responsible body - whether a local authority, multi-academy trust, or trustees of a voluntary-aided school - must fully understand the obligations involved and seek appropriate advice before signing.
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