Labour’s flagship public energy venture, Great British Energy, has taken a major step forward, officially passing through Parliament and making its debut investment – allocating £200 million to deploy solar panels across schools, hospitals and public buildings.

Framed as a cost-saving measure, Miliband aims to restore public support for net zero amid opposition rhetoric warning of the expense associated with clean power. By focusing on schools and hospitals, the expenditure is positioned as a win-win for both public services and net zero, aligning decarbonisation with community and national interest.

The rooftop solar rollout is a strategic first move – low-risk, quick to deploy, and publicly visible. Relatively uncontroversial, it offers measurable bill reductions whilst avoiding difficult debates around land use and planning. It aims to prove the concept; that a publicly backed UK energy company can deliver cost-effective, tangible results – and reinvest benefits into public services.

However, questions remain. £200 million may seem a good headline, but it is a drop in the ocean of the investment that the UK needs to meet net zero targets. Whilst not intended to be a leading player, rather a market catalyst, GB Energy’s effectiveness will depend on answers to three key questions.

Can it operate at the right scale?

The UK’s energy transition requires around £50 billion in annual investment through to 2030. In that context, £200 million is a modest start. However, GBE is due £8.3 billion via the National Wealth Fund over five years – still short of national needs, but significant. Initial funding has already begun, with £300 million earmarked for offshore wind supply chain development, and over £16 million to hospitals and community energy schemes across Scotland and Wales.

GBE will be fully operational from October, when it will begin large-scale capital deployment. The question is whether, as promised, that funding will be used to unlock difficult, system-critical technologies – such as floating offshore wind – or continue to be diverted into politically convenient, lower-impact projects.

When will we gain more clarity around its role and remit?

Following legislative approval and Royal Assent, GBE now has the legal mandate to operate across the UK, with full consent from devolved administrations.

However, crucial details are still absent. Will it invest directly or via partnerships? What level of risk will it take? How will it select projects? Does it expect commercial or concessional returns?

Likewise, while the organisation will be governed by an independent board, the degree of operational independence from the government is unclear. Without a clearly defined remit, GBE could get stuck between political expectations and commercial realities.

Can it earn the confidence of the market and the public?

To catalyse private investment, GBE must appear credible – clear in purpose, efficient in delivery, and backed by a strong leadership team.

So far, developers, investors, and supply chain actors are still unclear on how – or when – to engage. The rollout of rooftop solar will be watched closely; with any sign of delay or dysfunction potentially damaging credibility before larger opportunities reach the table.

However – Dan McGrail, interim CEO, has pledged a ‘proof and progress’ approach, addressing critics who have questioned the company’s pace and utility. Furthermore, the confirmation that it will not source solar panels linked to forced labour has been praised internationally, a sign that GBE could become an ethical leader in clean energy procurement.

But this credibility may yet be tested further. Recent reports indicate the Treasury may scale back parts of GB Energy’s planned funding in the upcoming spending review. Though the full extent is unclear, any cutbacks risk not only slowing delivery, but also sends mixed signals just as GBE seeks to build momentum.

GB Energy’s first investment has delivered an effective political message – but the true test begins in October. Its ability to become a credible force in the UK’s energy transition still depends on whether it can scale rapidly, operate efficiently and earn the trust of both the industry and the public.