The comprehensive spending review in June 2025 confirmed that Great British Energy would have £8.3 billion to invest, according to the Energy Saving Trust's review of the company's first 12 months1. The figure covers the whole of this parliament and had previously been announced as the intended investment in the publicly owned green power company1.
Great British Energy, also called GB Energy, is a publicly owned and operationally independent clean energy company1. It was established in law by the Great British Energy Act, which received Royal Assent on 15 May 20251. The company does not supply electricity directly to households; instead it works with the private sector to co-invest in emerging energy technologies so they can compete with more mature ones1.
"GB Energy won't supply electricity directly to households."
The company has five stated functions: developing clean energy projects through its partnership with the Crown Estate; investing in and owning renewable energy projects; incentivising local power through the Local Power Plan; helping build clean energy supply chains in the UK; and working with Great British Nuclear to deliver new nuclear projects1. Technologies it is intended to support include green hydrogen made by water electrolysis, floating offshore windfarms and tidal power, alongside scaled investment in onshore wind, solar and nuclear1.
Spending reported so far includes £700 million announced for clean energy supply chains, bringing committed funding to £1 billion for companies that will help deliver GB Energy's plans, and £10 million invested in supporting new clean power projects with mayoral strategic authorities in England1. In June 2025, 11 schools in England installed solar panels as part of a rooftop solar roll out, which is set to save those schools £175,000 a year1. The company's headquarters is in Aberdeen, with plans to add sites in Glasgow and Edinburgh over time1.
| Item | Figure |
|---|---|
| Confirmed funding to invest | £8.3 billion |
| Committed to clean energy supply chains | £1 billion |
| Announced for supply chains (further) | £700 million |
| Invested in new clean power projects | £10 million |
| Annual saving from first 11 school solar installations | £175,000 |
The funding was previously said to come from an increased windfall tax on oil and gas companies, at £1.2 billion over the course of the parliament, and from responsible borrowing1. The Energy Saving Trust reports that there is no firm commitment on what proportion of the £8.3 billion will go to the Local Power Plan, which is intended to generate up to eight gigawatts of energy through projects developed with local communities1. The UK government has said some profits from local energy projects will go back to the community, with discounts on local energy bills given as one possible use1.
Why it matters for households
GB Energy is not an energy supplier and does not sell electricity to homes, so the confirmed £8.3 billion does not change any household's bill directly1. Its stated initial aims include lowering energy bills for every household by an average of £300 a year, increasing energy security by reducing reliance on imported fossil fuels, delivering green electricity by 2030 and creating jobs through local energy generation1. Those are aims rather than outcomes, and no household-level savings from the company's investment have been reported.
For a home's energy independence, the relevant part is ownership and generation rather than supply. The company develops, owns and operates renewable assets, while specific projects are owned by local councils and communities1. Community benefit arrangements already exist elsewhere: the Energy Saving Trust cites Fintry Development Trust in Scotland, where part of a wind farm is community owned and 2023 profits took the form of £1,000 grants for households to install energy efficiency upgrades1. The proposed Local Power Plan would see GB Energy partner with local communities, with the aim of reducing strain on the grid and ensuring local people benefit from the energy their area produces1.
What happens next
The Department for Energy Security and Net Zero was to publish a statement of strategic priorities for GB Energy in 2025, after which the company would develop and publish its strategic plan in response1. A framework document explaining how the two organisations work together was also due in 20251. The Energy Saving Trust says it will update its page as more is known about Great British Energy1.
Sources1 cited
- Great British Energy: 12 months on - Energy Saving Trust, energysavingtrust.org.uk