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A private funding route to decarbonisation


When it comes to decarbonisation, the NHS does not have a technology problem – it has a funding problem. At a time of geopolitical instability, pressure on public finances, and persistent energy price volatility, NHS organisations need a credible, fundable route to deploy proven technologies such as LED lighting, solar PV, battery storage, and EV charging. John Gahan, CFO and interim CEO of eEnergy, argues that public funding support is welcome, but the scale of the challenge means the NHS also needs practical private sector models designed to work with NHS finance, procurement, and estates realities.


If the NHS is serious about decarbonising its estate, it must first solve the issue that has slowed so many projects for so long: funding. That is the real pain point for procurement officers, estates directors, and finance teams. Most already know the technologies exist: LED lighting can cut waste quickly; solar PV can generate clean electricity on site, whether on roofs, the ground, or across car parks; battery storage can improve resilience and reduce peak demand; and EV charging is becoming an increasingly practical requirement for fleet, staff, and visitor infrastructure. The question is not whether these technologies work, but whether there is a route to deploying them that NHS finance teams can support and CFOs can engage with. This matters now more than ever. NHS leaders


are trying to decarbonise estates while dealing with an ageing-built environment, constrained budgets, operational pressure, and growing demand to improve overall resilience. Estates teams are being asked to reduce waste, cut carbon, support frontline care, and modernise infrastructure, all while capital remains tight and governance rightly rigorous. Layer onto that a more volatile geopolitical and energy backdrop and the case for action becomes stronger. Energy efficiency and on-site generation are no longer simply sustainability measures; they are increasingly a hedge against uncertainty.


The scale of the opportunity According to the latest Estates Returns Information Collection, the NHS estate in England consumed more than 11 billion kilowatt hours (kWh) of energy in 2024/25. That underlines just how large the energy burden remains across the estate. eEnergy estimates that around 30 per cent of energy used across the public and private sectors is unnecessarily wasted. If that estimate is even broadly right, the opportunity is substantial. Eliminating avoidable waste is not a marginal gain exercise – it is a major financial and operational opportunity for the NHS. This is especially relevant in healthcare, as every unnecessary kWh consumed is money that cannot be spent on patient care, clinical services, staffing, or frontline resilience. Every inefficient asset left in place continues to drain revenue. Every year of delay locks in avoidable waste. The financial effect is not abstract – it is immediate, cumulative, and felt across the estate. Yet this is where too many projects stall. Even when


the estates and operational case is compelling, capital is scarce, approvals are slow, and finance teams are rightly cautious about anything that creates balance sheet complexity or competes with other pressing investment


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priorities. The result is a familiar pattern: estates teams know what should be done, but the route to delivery is blocked. That has left many organisations reliant on government-backed funding. Government subsidy is, of course, always welcome, but it is often competitive and can frequently be difficult to navigate. More importantly, it is not guaranteed.


Finding the right route for your estate In practice, NHS organisations tend to face four broad routes: capital expenditure (CapEx), government funding, a funded delivery model, or delay. For many Trusts, the challenge is not identifying the right technology but identifying the route that can actually get approved and delivered. The limitations of the traditional routes are well


understood. CapEx can work, but only where there is room in already stretched capital plans and where decarbonisation projects can compete successfully against other priorities. In reality, many sensible energy projects lose out because the capital budget is already committed elsewhere or because the estate has more urgent demands. That does not make the project wrong; it simply means it never reaches the front of the queue. Government funding is valuable and should be welcomed. Schemes such as the NHS Energy Efficiency Fund and wider public support for solar PV have an important role to play in accelerating progress, but public funding is not a complete answer. It can be episodic, competitive, and, most importantly, time-consuming. Internal resources, a proper business case – as well as the right timing – are all necessary ingredients. Many Trusts know what they want to do, but do not always have the


Four practical routes to NHS energy project delivery: CapEx, government funding, funded delivery, or doing nothing.


eEnergy


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