Why is solar power underused in the public sector?

Public finances remain under pressure, while fitting solar panels is a quick way to cut expenditure. Gareth Simkins, senior communications adviser at the trade association Solar Energy UK, explores why so many public buildings are yet to go solar—and how more can in the future

Solar panels are hardly a universal sight on the nation’s public buildings. Reliable figures for how many have them are unavailable but the Department of Energy Security and Net Zero (DESNZ) says that only around 20 per cent of schools – which of course make up a significant part of the public estate – run on solar power.

For the public sector more broadly, installing solar energy systems is not only in line with the need to economise, it is a prominent and visible response to the climate emergency.

But for schools in particular, there are wider benefits, helping pupils “develop green skills, promoting careers in renewables and supporting growth in the clean energy workforce,” according to education minister Stephen Morgan.

So what has got in the way of retrofitting more rooftops?

Subsidies

In 2010, solar panels were far more expensive than now, so the feed-in tariff subsidy was established to stimulate the rooftop market. As costs fell, the subsidy was gradually lowered and eliminated entirely in 2019, making the rate of return less attractive. With higher energy prices, the situation has of course since changed, making solar energy a more economic prospect.

Planning

For some time, larger arrays of rooftop solar panels required planning permission, adding cost and delay. Common sense prevailed and they are now subject to permitted development, without any size limit, in both England and Scotland. Planning permission is still needed for installations on non-domestic buildings in Wales and Northern Ireland.

Upfront cost

According to DESNZ, installations with capacities between 10 and 50 kilowatts became 10 per cent cheaper between 2023/24 and 2024/25. The range is around what would be expected on top of an office block or the roof of a school building, around 3-15 times larger than a typical home solar system.

But cost remains the biggest stumbling block to installing more public sector photovoltaics. As one senior Government official, who preferred not to be named, confirmed: “The financial resources available to local authorities remain tight. Though installing solar panels is clearly a great way to produce long-term savings, justifying that over funding front-line services can be a challenge.”

Fortunately, in March, Great British Energy announced £180m of funding to fit solar and battery energy storage systems on 200 schools and 200 NHS sites across England. Some are already complete, being expected to save a typical school around £25,000 a year, or £45,000 for NHS sites. A further £9.3m was allocated for similar projects in Wales, Scotland and Northern Ireland.

GB Energy is relying on the Solar Stewardship Initiative, a supply chain traceability system set up in part by Solar Energy UK, to ensure that the raw materials used in manufacturing panels are processed without forced labour – a concern of purchasers and the industry alike.

“Just like households, schools and hospitals alike have been beset by high energy bills over recent years, pulling precious funds from where they should be going. So every penny put into solar photovoltaics and energy storage for public buildings means more cash for the services we all depend on – and help teach the next generation the value of renewable energy,” said Chris Hewett, chief executive of Solar Energy UK.

Alex Green, head of Let’s Go Zero, a branch of the sustainable energy charity Ashden that offers advice on decarbonising schools, said: “Long term investment in decarbonising the school estate presents an opportunity to lead public sector decarbonisation by example and free up funds for reinvestment. A coordinated approach will mobilise the finance industry and supply chain, while delivering resilient schools for our children and contributing to the Government’s targets to reduce emissions and generate clean power.”  

Additionally, the Public Sector Decarbonisation Scheme has provided £530m for over a thousand projects since 2020, many of them involving solar energy. But this is still scratching the surface, considering the tens of thousands of buildings that make up the public estate, from military bases to libraries.

Finance

The Treasury can only stretch so far, so barriers to using other sources of funding must be overcome.

As a recent report on financing the decarbonisation of schools by Ashden and the Green Finance Institute notes, the National Wealth Fund cannot lend directly to schools to support with upfront costs. Restrictions on school borrowing hinder private investment and unclear Government policy on decarbonising the school estate has made delivery partners “hesitant to commit resources, hindering the market’s readiness for widespread decarbonisation measures,” it states.

However, hundreds of volunteer-led community energy groups around the country raise funds from local people to install solar panels and other energy efficiency upgrades on public and community buildings. Thousands of recipient buildings benefit from an immediate reduction in energy bills, while investors make a moderate profit from selling the power generated.

But why have more sites in the public sector not taken this route?

Duncan Law, head of policy and advocacy at Community Energy England, explained that while asset owners may have an inclination and interest towards installing solar panels, they can be held back by a lack of relevant expertise, capital and drive. All of that can be provided by community energy groups, alongside long-term operation and maintenance, too. 

In some cases, lack of progress has been self-inflicted. For example, just as one Greater London community energy group’s first projects were ready for investment, a local authority officer demanded a ‘roof rental’ charge so large it rendered the projects uneconomic. In others, only a peppercorn payment applies. So the group turned instead to facilities that were outside of the council’s influence, such as an academy school and place of worship, though a more positive relationship between them is now being built.

Another source of help is Solar for Schools – which both facilitates community energy projects in the education sector and assists in obtaining grants, including from private sources. Last year, it secured a £3m loan to grow its network of solar-powered schools around the country, topped up with crowdfunded bond finance.

Grid

In some cases, large rooftop arrays cannot be built – for now, at least – as the local grid cannot accommodate the power produced. Vital upgrades to the grid are slow and waiting times for connections can extend to many years, delaying reductions in energy bills. Fortunately, plans are afoot to remedy the problem by slashing red tape and reforming the queue for connections.

Buildings

In rare cases, pre-installation surveys find that roofs cannot take the weight of solar panels, though developments in lightweight, thin-film systems could make such projects deliverable in the future.

Listed buildings and those in conservation 
areas can also pose a stumbling block, as the need to secure consents can cause undue delays. The government is expected to liberalise the regime for solar installations, and already one council, namely Kensington and Chelsea, allows panels to be installed on listed buildings without prior consent if they do not face roads and do not protrude more than 20cm from the roof.

MCS

Finally, the most important thing to consider is securing a reliable and fully qualified installer, avoiding cowboy operators. Always ensure that your solar and battery energy storage installer is a member of MCS, the standards body for smaller-scale sustainable energy systems, by checking on mcscertified.com.

solarenergyuk.org