Hospitals in England will be offered funds to ensure they become energy efficient as the government attempts to cut the £600 million annual NHS fuel bill.
Health minister Dan Poulter said hospital bosses can apply for a share of £50m for projects to reduce energy costs such as introducing wind and solar power.
The Department of Health (DoH) hope the measures will save hospitals up to £12.5 million each year, which ministers have pledged to invest into front line care.
Dr Poulter said: "Hospitals use a huge amount of power. The NHS is one of the biggest users of energy in the UK, costing almost #600 million every year.
"This fund gives hospitals the go-ahead for all kinds of efficiency projects that will help them reduce the amount of energy they use and, as a result, their energy bills.
"Saving money on fuel and energy bills means more money for the NHS to spend on front line patient care, as well as a healthier environment for future generations."