DfE’s pilot programme will see solar PV modules installed across some 150 schools and colleges as part of the first phase of the renewal and retrofit programme.
July 28, 2026
A Department for Education (DfE) pilot to assess how power purchase agreements (PPAs) can enable solar installations at schools has been called a “genuinely significant moment for the UK’s clean energy transition”.
However, the PPA template will have to be carefully formulated so as not to “bake in imbalance,” Zoe Stollar, a partner in energy and infrastructure at UK and Ireland law firm Browne Jacobson, has said.
DfE’s pilot programme will see solar PV modules installed across some 150 schools and colleges as part of the first phase of the renewal and retrofit programme. The programme will take place in the Yorkshire and Humber, East Midlands and South East regions.
The £710 million renewal and retrofit scheme is intended to fund projects at buildings that typically cannot be delivered from existing maintenance funding but that are not at the point of needing to be rebuilt.
The PPA pilot will evaluate the model for enabling private sector investment in solar installations on schools and colleges, establishing the best route to market to achieve value for money at scale, regardless of location or building type.
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In theory, DfE’s PPA model would see schools receive the benefits of a solar installation without requiring the upfront capital.
Other government intervention to help with the upfront cost has seen its public energy company, Great British Energy, provide the capital for school solar installations.
Shortly after that was first announced, shortly after AMPYR Distributed Energy’s CEO John Behan wrote to energy secretary Ed Miliband and GB Energy chair Juergen Maier (roles that both have now left) to emphasise the role that private sector investors can play in supplementing government funding, pledging to match the state-owned energy company’s £180 million investment in public sector solar PV.
Rebecca Cullen, senior associate specialising in solar panel provision within education real estate at Browne Jacobson, said: “For many schools, energy bills are one of the largest and most unpredictable items of expenditure they face. The prospect of locking in electricity at a rate below standard grid tariffs, with no upfront capital cost, is genuinely attractive, particularly for schools operating under sustained financial pressure.”
As part of the pilot, DfE has developed a PPA and land lease template to be tested with the sector before being used more widely. DfE will consider applications it has already received for land consent for PPAs and linked land leases up to and including 15 July 2026.
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From 15 July 2026, any PPA for the school estate will need to use the DfE PPA and land lease template.
This is where Browne Jacobson lawyers are urging some caution. Stollar noted that although “a standardised template can be enormously beneficial as it reduces transaction costs, speeds up procurement and gives private sector investors the certainty they need to price risk competitively,” it must be “carefully calibrated”.
“Schools and colleges will be largely non-specialist counterparties in these arrangements, and the terms around tariff review mechanisms, step-in rights, roof condition warranties, and exit provisions will all need to be fair and clearly understood by those signing them,” Stollar added.
Along the same lines, Cullen said: “School leaders and governors need to approach this with their eyes open. A PPA is a long-term contractual commitment, typically running for 15 to 25 years, which involves granting a land lease over part of the school's roof and a new partnership with a private sector counterpart.
“The responsible body – whether that is a local authority, multi-academy trust or the trustees of a voluntary-aided school – needs to get to grips with the nature of obligations they are taking on and ensure they have appropriate advice before signing.
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“A standardised PPA is only as protective as the school's understanding of it.”
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Molly Green
Section Editor, Informa
Molly joined the team in 2024 and has led coverage on the UK sites. Now shifting to a more global view, Molly is interested in how legislation shapes market dynamics, covering the intersection of policy design, investment patterns, and energy transition pathways.
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