DECARBONISATION Financial pressures remain one of the most significant
barriers to accelerating estate decarbonisation. NHS organisations face multiple competing capital priorities including backlog maintenance, clinical equipment replacement, digital transformation programmes, and major estate redevelopment projects. Energy infrastructure investments inevitably compete against these priorities. Government grant programmes such as the Public Sector Decarbonisation Scheme have supported early projects. However, the scale of investment required to decarbonise the NHS estate is far greater than the funding available through grant schemes alone.
The role of Power Purchase Agreements Across the commercial and industrial sectors, many organisations now deploy renewable energy infrastructure through third-party financing structures such as Power Purchase Agreements (PPAs). Under a PPA model, a developer funds, installs, and
operates renewable energy infrastructure while the host organisation purchases the electricity generated under a long-term contract. Through partnerships between renewable developers and energy suppliers, including collaborations between Ortus Energy and SSE Energy Solutions, organisations can deploy fully funded solar infrastructure without upfront capital expenditure. In a typical arrangement:
n Ortus Energy develops and delivers the on-site solar installation.
n SSE Energy Solutions provides energy supply expertise and power purchase structures.
n The host organisation purchases electricity generated at an agreed price.
n Operational performance and maintenance responsibilities sit with the infrastructure provider.
For large estates, electricity is increasingly viewed as a strategic input affecting operational resilience, financial planning, and long-term decarbonisation delivery.
Conclusion NHS estates teams have made meaningful progress in improving the energy performance of healthcare buildings. However, the scale of decarbonisation required across the estate remains significant. Meeting long-term Net Zero commitments will require
a broader strategy that combines energy efficiency with expanded renewable technologies including rooftop solar, solar canopies, ground-mounted installations, and battery storage. It will also require new approaches to financing and infrastructure delivery that bring together estates teams, energy providers, and renewable infrastructure developers. The NHS estate represents one of the largest built
infrastructure systems in the UK. With the right strategy, it has the potential to become a major platform for clean energy generation while improving cost certainty and strengthening operational resilience. The opportunity is substantial. The next step is moving from incremental progress toward system-wide transformation.
Bibliography n UK Government. Delivering a Net Zero National Health Service. London: Department of Health and Social Care; 2020.
n NHS England. Estates Return Information Collection (ERIC) Summary Page and Dataset. London: NHS England; 2023.
Ian Johnson
Ian Johnson is public sector lead at Ortus Energy, where he works with NHS organisations and other public sector bodies to accelerate estate decarbonisation through on-site renewable energy and innovative financing models. He specialises in developing fully funded solar infrastructure delivered through Power Purchase Agreements in partnership with SSE Energy Solutions, enabling large estates to reduce emissions, lower energy costs, and strengthen energy resilience without upfront capital investment.
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FBW253 - Net Zero Advertisement -
HEJ.indd 1 06/08/2026 07:59 September 2026 Health Estate Journal 77
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