The new funding, announced today, will support public sector organisations to install low carbon heating, such as heat pumps and energy efficiency measures including double glazing and loft insulation.
The grants are available through the Public Sector Decarbonisation Scheme and are forecast to save an average of £650 million per year on energy bills over the next 15 years.
The scheme will open for applications in September.
Business and Energy Minister Lord Callanan said: “By helping even more public sector bodies ditch costly fossil fuels, we are taking an important step towards a more sustainable future while driving economic growth across the country and continuing to support tens of thousands of jobs.”
It is estimated that the NHS, the largest employer in Britain, is responsible for around 4% of the nation’s carbon dioxide emissions.