Written by Declan Adams, Managing Director.
Schools across the UK are facing unprecedented financial pressure. According to the latest Kreston report, around 60% of schools recorded an in-year deficit in 2023/24, triple the number compared to 2020/21. At the same time, funding is expected to rise at a slower rate than costs over the next three years. With squeezed budgets and rising energy bills, school leaders are under pressure to find solutions that cut costs without cutting corners on education.
This is where solar energy steps in as both a cost-saving measure and a smart long-term investment. The Department for Education (DfE) has set clear decarbonisation targets under its Sustainability and Climate Change Strategy. Solar panels not only help schools reduce their carbon footprint, but they also deliver measurable returns, most schools see a typical payback period of 6–10 years, after which the energy generated is essentially free.
By 2025, all schools will also be required to have both a climate action plan and a designated sustainability lead (DfE guidance). Installing solar directly supports these obligations, showing tangible progress toward sustainability goals while strengthening financial resilience.
Here’s why solar panels are one of the best investments a school can make:
1. Long-Term Cost Savings
Schools are high-energy hubs: classrooms, computer labs, HVAC systems, sports facilities, all of it adds up. Switching to solar energy can reduce electricity bills by tens of thousands of pounds each year. Those savings compound over time, meaning schools can redirect more funding into what matters most, education, resources, and student experience.
2. Predictable Budgets
Traditional energy prices are unpredictable and volatile. Solar provides a hedge against rising utility costs, giving schools the ability to plan ahead with more certainty. Instead of scrambling when bills spike, leaders can work with stable, predictable budgets that allow for smarter financial decisions.
3. Educational Value for Students
Solar panels aren’t just silent power generators; they’re hands-on teaching tools. Schools can integrate real-time solar production data into STEM lessons, giving students a tangible connection to sustainability, renewable energy, and technology. Beyond academics, it positions the school as forward-thinking and innovative. This is something that parents, students, and communities notice and value.
4. Sustainability & Reputation
Modern schools are under growing pressure to lead by example on environmental responsibility, and the Department for Education’s decarbonisation targets make that expectation crystal clear. Installing solar panels helps schools directly contribute to these national goals, reducing carbon emissions, cutting reliance on fossil fuels, and demonstrating measurable progress toward net zero. It’s a visible, credible commitment that builds trust with parents, students, and the wider community, showing that the school is not only eco-conscious but also financially strategic in how it invests for the future.
5. Grants & Incentives
Here’s where solar gets even more appealing: many schools qualify for government grants, low-interest loans, or state/federal incentives that make installation significantly more affordable. Nonprofits can also explore third-party ownership models such as Power Purchase Agreements (PPAs), which allow schools to benefit from solar energy without the upfront capital costs.
6. Long Asset Life
Solar panels are built to last typically 25 to 30 years, with minimal maintenance required. Once installed, they continue generating clean, free energy for decades, quietly delivering financial and environmental returns that outlive multiple generations of students.
The Bottom Line: Solar panels help schools tackle today’s financial challenges while preparing for tomorrow’s sustainability requirements. With strong ROI, alignment with DfE targets, and the ability to ease budget pressures, solar is one of the smartest investments a school can make for its students, staff and community.
Hear from a school we partnered with and the impact solar has had on their facilities:
“Since partnering with Kembla to install solar panels across our trust, we’ve seen a noticeable drop in our energy bills; in the last 12 months, 33% of our electricity needs were met by our solar panels. Based on our current savings, we’re on track to achieve a payback period of 5-7 years at some of our schools, with the solar panels expected to provide electricity for 25-30 years in total. We’re proud to be addressing government sustainability targets while making a positive impact on the planet for our students and the wider community.”
CFO, West Midlands MAT
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