Hospitals across England are set to receive significant energy efficiency upgrades as part of a nationwide government initiative aimed at reducing carbon emissions and cutting public sector energy bills.
The Department for Energy Security and Net Zero has announced more than £630 million in funding to support energy-saving measures for public buildings, including NHS hospitals, schools, and care homes.
This investment forms part of the government’s broader Plan for Change and Public Sector Decarbonisation Scheme, which is expected to save taxpayers an estimated £650 million per year over the next 12 years by helping public institutions transition to low-carbon heating and improved energy efficiency.
Among the healthcare organisations set to benefit is Northumbria NHS Foundation Trust, which will receive over £14 million to replace fossil fuel heating systems at two of its hospital sites.
The Department for Energy Security and Net Zero has announced more than £630 million in funding to support energy-saving measures for public buildings
The funding will be used to install cleaner, homegrown energy solutions, including heat pumps and other renewable technologies, contributing to the Trust’s long-term decarbonisation objectives and supporting the resilience of local health services.
This initiative follows the launch of Great British Energy’s first major project, which includes the installation of solar panels on approximately 200 NHS sites nationwide.
These investments are designed to reduce operational costs and allow more NHS funds to be redirected towards frontline patient care.
Further funding from the Green Heat Network Fund, worth over £102 million, will support the development of low-carbon heat networks in England.
Among the healthcare organisations set to benefit is Northumbria NHS Foundation Trust, which will receive over £14 million to replace fossil fuel heating systems
These schemes aim to supply groups of buildings, including hospitals, with heat from sustainable sources such as recovered waste heat, geothermal energy, and heat pumps.
The heat networks receiving support include projects in Derby, Bristol, Westminster, Lincoln, East London, Trafford, West Bromwich, and Merseyside.
The Public Sector Decarbonisation Scheme, which opened applications for its fourth phase in October 2024, has a total funding allocation of approximately £940 million, set to run until the financial year 2027/28.
Regional allocations as of May 2025 show significant investment across the country, with the North West receiving over £116 million, Greater London over £113 million, and Yorkshire and the Humber over £81 million.
Regional allocations as of May 2025 show significant investment across the country
With energy upgrades now underway in hospitals, schools, and other vital services, the government’s plan marks a critical step towards decarbonising public infrastructure and securing long-term energy savings for the public sector.
Policy Manager at Energy UK Louise Shooter said: “High energy bills have been a big headache for schools, hospitals, leisure centres and other community facilities in recent years - so it’s great to see them being helped to install energy saving measures and other green technology that will cut energy costs permanently while also enabling them to do their bit to reduce emissions.”
Vice-Chancellor Professor at the University of York Charlie Jeffery said: “Our geothermal project will be a powerful catalyst in our journey towards net zero, offering a significant reduction in carbon emissions and a greener future.
“Beyond its crucial environmental impact, the site will serve as a living laboratory that will drive research, educate our students, and bring benefits beyond our campus.
“The support from the government is a vital catalyst for this transformative endeavour, which we believe will empower the next generation of sustainability leaders and deepen community understanding of renewable energy technologies.”