DfE Solar Power Purchase Agreements (PPA) Pilot

The Department for Education (DfE) is inviting organisations to participate in a Preliminary Market Engagement (PME) exercise to help shape a standardised private investment model for rooftop solar installations across schools and colleges in England.
As part of the Department's wider ambition to improve, renew and decarbonise the education estate, DfE is piloting a Power Purchase Agreement (PPA) model that will enable schools and colleges to benefit from solar energy infrastructure without upfront capital investment.
This engagement seeks feedback from solar developers, investors, lenders, community energy organisations and other relevant stakeholders on the Power Purchase Agreement model, which includes a PPA and associated lease arrangements. We are looking to understand whether the proposed approach is commercially viable, financeable, scalable and capable of delivering value for money across a diverse education estate.
The feedback gathered through this exercise will help refine the model before its wider implementation and support DfE's ambition to make solar deployment more accessible for schools and colleges across England.
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Background
Through the Great British Energy Solar Partnership and related programmes, solar panels have already been installed across a number of educational settings, demonstrating significant benefits including:
• Reduced energy costs for schools and colleges.
• Lower carbon emissions and progress towards sustainability objectives.
• Improved resilience through on-site electricity generation.
• Strong financial returns, with early evidence suggesting average payback periods of approximately 3 to 6 years.
The Education Estates Strategy (https://www.gov.uk/government/publications/education-estates-strategy) identified solar installation through private investment as a key opportunity to accelerate decarbonisation across the education estate. This PME will help inform the design and delivery of a...