Guidance

Funding for installing solar photovoltaic panels on schools and colleges

Published 16 July 2026

Applies to England

As part of the renewal and retrofit programme, some solar photovoltaic (PV) panels will be installed on schools and colleges using a form of private investment known as a power purchase agreement (PPA).

The pilot will evaluate the PPA model for private sector investment in solar installations on schools and colleges. It will seek to establish the best route to market that achieves the best value for money at scale, regardless of location or building type.

A PPA is a commercial arrangement in which: 

• a private sector provider finances, installs, and maintains solar panels at no upfront cost to the school or college
• the school, college or responsible body agrees to purchase the electricity generated by those panels at a pre-agreed rate, usually lower than standard grid tariffs
• the provider retains responsibility for maintenance and performance throughout the agreement
• schools, colleges and responsible bodies benefit from renewable energy and energy savings without needing upfront capital investment.

Eligibility for the pilot

The Department for Education (DfE) is piloting PPAs with up to 150 schools and colleges as part of the first phase of the renewal and retrofit programme. This pilot will take place in the same regions as the first phase of the renewal and retrofit programme: 

• Yorkshire and Humber 
• East Midlands 
• South East

DfE is selecting schools and colleges for this pilot based on the same pre-defined selection criteria as for the renewal and retrofit programme.

If your school or college is eligible, DfE will contact you to notify you of the next steps.

Final selection will conclude at the end of the summer, with procurement starting in autumn 2026.

We hope that all schools and colleges will have the opportunity to procure renewable energy in this way from the 2027 to 2028 financial year.

The DfE template for PPA and land lease

As part of this pilot, DfE has developed a PPA and land lease template, which will be tested with the sector before being used more widely.

DfE will consider applications it has received for land consent for PPAs and linked land leases up to and including 15 July 2026.

From 15 July 2026, any PPA for the school estate will need to use the DfE PPA and land lease template. This includes any PPAs submitted to DfE for approval via the School Land Transactions Team whilst the pilot is ongoing.

There will be a pause of a few months while we test the PPA and land lease template. During this time, we will not approve any new cases. Once testing is complete, we will publish the templates and resume approvals. We expect templates to be available in autumn 2026.

Schools not eligible for the pilot

Non-pilot cases will be dealt with by the School Land Transaction Team on the basis that:

• cases submitted up to and including 15 July 2026 will continue to be considered for approval and approved on the terms under which they were submitted 
• cases submitted after 15 July 2026 will only be considered for approval where the approved PPA and land lease templates are used
• cases are submitted for solar panel installation on the roof of buildings in good condition - applications will not be approved where the roof condition is poor

Applications will be assessed for value for money prior to approval.

If you have questions about submitting an application for a PPA whilst the pilot is ongoing, or questions relating to the pilot, contact us through the manage your education estate (MYEE) service, or the normal channels to contact DfE.