UK to Invest $260 Million on Solar Panels for Schools and Hospitals

UK Commits $260 Million to Solar Panels for Public Services

LONDON (Reuters) - GB Energy will lead a 200 million pound ($260 million) solar panel project for hospitals and schools, Britain said on Friday, in the first investment for the state-owned company since it was set up last year with the aim of lowering energy bills.

A key part of the Labour government's plan to improve public services in Britain and help revive the economy, GB Energy was established in October to drive investment in renewables.

The 200-million-pound deal could help dampen speculation around GB Energy's funding ahead of a budget update speech from finance minister Rachel Reeves next Wednesday, when she is expected to announce cuts to public spending plans.

GB Energy will pay for solar panels on the roofs of schools and hospitals, in this first major project, with the first installations expected to be made this summer, the government said.

A jump in energy bills since the Ukraine war has heaped extra pressure on already strained health and education budgets, but the new solar panels and related renewable schemes will help cut those costs, the statement said.

"Great British Energy's first major project will be to help our vital public institutions save hundreds of millions on bills to reinvest on the frontline," energy minister Ed Miliband said.

"This is our clean energy superpower mission in action, with lower bills and energy security for our country."

GB Energy will make this investment alongside the government as the parliamentary process to finalise its creation is not expected to complete until next month.

Of the total investment, about 80 million pounds has been earmarked for schools in England, while 100 million pounds will go on hospitals. GB Energy will also work with devolved governments on solar projects for their schools and hospitals.

($1 = 0.7717 pounds)

(Reporting by Sarah Young, editing by Alvise Armellini and William James)