Solar Panel Funding for Schools in 2026
Schools across the North East are facing rising energy costs while simultaneously being asked to reduce their carbon footprint. Solar panels for schools offer a solution to both challenges, and in 2026 there are more funding options available than ever before. This guide explains the key funding sources and how schools can access them.
Great British Energy and the Local Power Plan
Great British Energy, the government's publicly owned clean energy company, has identified schools as a priority sector for clean energy investment. Through the Local Power Plan programme, Great British Energy is working with local authorities and community organisations to facilitate solar installations on public buildings including schools.
The programme aims to reduce energy costs for schools while supporting the UK's net zero targets. Funding models vary by region and can include direct grants, power purchase agreements (PPAs) where a third party funds the installation and the school buys electricity at a reduced rate, or blended models combining grants with school investment.
Schools interested in the Local Power Plan should contact their local authority energy team or Great British Energy directly to find out what is available in their area. At ALPS Electrical, we work with several North East local authorities on school solar projects and can help facilitate these conversations.
Salix Finance
Salix Finance provides interest-free loans to the public sector for energy efficiency and renewable energy projects. Schools maintained by local authorities and academy trusts can apply for Salix loans to fund solar panel installations. The loans are typically repaid over 8-12 years from the energy savings the system generates, making them effectively cost-neutral.
Key features of Salix loans include zero interest over the full loan term, repayment funded entirely from energy savings, availability for schools that are local authority maintained or part of an academy trust, and the ability to cover the full installation cost including surveys, design and project management.
Salix has funded thousands of public sector energy projects across the UK and is a well-established, reliable funding source for school solar installations.
Public Sector Decarbonisation Scheme
The Public Sector Decarbonisation Scheme (PSDS) provides grants rather than loans for public sector buildings to decarbonise heating and improve energy efficiency. While the primary focus is on heat decarbonisation, solar panels can be included as part of a wider energy improvement package. Schools replacing gas boilers with heat pumps, for example, can often include solar panels in the same PSDS application.
How Much Can a School Save?
School buildings are well suited to solar panels because their electricity usage peaks during school hours, which coincides with solar generation. A typical primary school might install a 30-50kW system, while secondary schools and academies often install 50-100kW+ systems.
- 30kW system: Generates approximately 27,000 kWh per year, saving £7,000-£8,000 per year at commercial rates.
- 50kW system: Generates approximately 45,000 kWh per year, saving £11,000-£14,000 per year.
- 100kW system: Generates approximately 90,000 kWh per year, saving £22,000-£27,000 per year.
These savings go directly back into the school budget, funding teaching assistants, equipment and resources that might otherwise be cut due to energy cost pressures.
Educational Value
Beyond the financial savings, solar panels provide an excellent educational resource. Many of the schools we have installed systems for use the monitoring data in science and maths lessons, teaching pupils about renewable energy, electricity generation and environmental responsibility. We provide schools with access to online monitoring platforms that display real-time generation data, which can be displayed on screens in reception areas or classrooms.
Our Experience with School Solar
ALPS Electrical has installed solar panel systems on several schools across the North East. Our commercial solar team understands the specific requirements of school installations, including working around term times, safeguarding policies, asbestos surveys and the need to minimise disruption to teaching. We handle the entire process from initial energy assessment through to funding applications, installation and ongoing monitoring.
Next Steps for Schools
If your school is interested in solar panels, the first step is an initial energy assessment to understand your current electricity usage and identify the best system size. Contact ALPS Electrical for a free, no-obligation school solar assessment. We will assess your buildings, identify available funding options and provide a clear proposal showing the projected savings and payback period.