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09 Feb 2026
3 minutes read

Clean energy upgrades: what the latest £74 million announcement means for NHS estates

The government’s latest press release confirms a further £74 million of investment to support clean energy upgrades across 82 NHS Trusts, alongside military sites and a prison.

For NHS estates directors and sustainability teams, the announcement feels like another nudge, perhaps even a welcome shove, towards accelerating decarbonisation plans that, until now, have been hard to progress under constrained budgets.

What’s included in the funding?

The package covers a suite of technologies that many trusts have been trying to find capital for:

  • Solar PV
  • Battery storage
  • Heat pumps
  • Modern energy management systems
  • Energy efficient lighting and retrofit measures

Trusts will also benefit from £9 million delivered in partnership with Great British Energy, specifically for solar and battery deployment, building on the company’s previous investment in public sector clean energy projects.

A handful of sites were name checked, including Lincoln County Hospital, receiving over £1.2 million for solar panels, and The Harbour in Blackpool, which will install £590,000 worth of battery technology.

Why this matters to NHS estates teams

The headline is simple: over 190 NHS sites stand to save almost £30 million a year. That’s money that can be reinvested directly into patient care, backlog maintenance or broader estate transformation.

But the strategic context is just as important. NHS organisations are under growing pressure to meet net zero obligations, often without the capital flexibility to make large scale energy upgrades. This announcement won’t solve everything but it does start removing one of the biggest barriers: upfront cost.

For estates directors, this could be an opportunity to bring forward projects sitting on the “would do, if only we had the funding” list.

The direction of travel is unmistakable

It’s also clear that the government sees public sector decarbonisation as a priority. Clean energy upgrades form part of wider policy momentum. From planning reform to clean power commitments. Mills & Reeve’s own insights have tracked how rapidly the sector is shifting, as the UK aims to become a “clean energy superpower” with up to 95% clean electricity by 2030.

The NHS sits at the centre of that transition. Estates teams are not just responding to a compliance challenge; they’re shaping the future resilience and affordability of healthcare infrastructure.

 

How Mills & Reeve can help NHS trusts take forward clean energy projects

We help NHS clients navigate the legal frameworks behind EPCs, long‑term partnering arrangements, grant processes and risk allocation. With projects involving solar, heat pumps, storage and integrated energy systems, getting the structure right early prevents delays later.

Turning funding into delivery

Announcements like this one are helpful, but what really matters is converting funding into well‑scoped, well‑procured, and well‑delivered projects. That’s where many trusts experience bottlenecks, especially when balancing safety, backlog maintenance and operational continuity.

If your trust is exploring clean-energy upgrade or you're unsure where to start, our teams can help you scope, structure and delivery projects with confidence.

 

Our content explained

Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.