Phase 3b of the Public Sector Decarbonisation Scheme (PSDS) is due to open for applications in September. The PSDS provides public sector organisations with grants to fund heat decarbonisation and energy efficiency measures.
Phase 1 launched in September 2020, followed by Phase 2 in April 2021, and Phase 3a which closed to applicants in November 2021. Successful projects that received funding can be found here – schemes webpage, along with short summaries on how the funding was used to implement heat decarbonisation projects.
Why are the Government offering this funding?
Heat contributes to 37% of the UK’s overall carbon footprint! And the majority of public sector buildings still rely on burning fossil fuels as a primary resource for their heating, hot water, and catering.
In an effort to decarbonise, the Government have introduced PSDS to help organisations reduce their heating emissions and work toward the UK’s 2050 Net Zero goal.
What does Phase 3b cover?
Phase 3b aims to help upgrade heating systems in public buildings to ones powered by cleaner, cheaper and renewable energy; helping to reduce fossil fuel reliance and provide lower energy costs to public sector organisations.
Salix announced that they have allocated up to £635m of funding for public sector organisations which is to be spent in the financial years 2023/24 (up to £402m) for single year applications and 2024/25 (up to £233m) for multi-year applications. Download a copy of the guidance notes here.
Who is eligible?
The scheme is open to the following public sector bodies in England, Scotland, Wales and Northern Ireland.
- Central government departments and their arm’s length bodies
- Emergency services
- Institutions of further and higher education
- Local authorities
- Schools within the state education system, including maintained schools, academies, Multi-Academy Trusts and free schools
- Nursery schools maintained by a local authority
- NHS Trusts and Foundation Trusts
When is the application deadline?
The application process for Phase 3b opens in September, but the official date is still to be announced. As with previous rounds of funding, we expect that the window for applications will close very quickly so it’s important your application is ready as soon as the window opens. The PSDS is administered by Salix Finance and you can find the questions that will appear on the application form on their website.
Application types
Those seeking single year applications must complete their projects by 31st March 2024, whilst those applying for a multi-year applications (which are designed for projects that will take more than one financial year to complete) are required to complete by 31st March 2025. Salix has intended that any applicants that apply for funding at the Phase 3b application window for projects with spend in 2024/25 only, use 2023/24 as a planning year.
Please note: Your business must state whether they intend to apply for a single year project or a multi-year project when applying.
How the UK’s leading energy and sustainability advisor can help
We have over 20 years’ experience supporting public sector organisations just like yours. We help them manage and optimise their energy, and reduce their carbon footprint – we are the perfect partner to support you with your application.
Get in touch today to speak to an energy expert about your business’ decarbonisation plans on 01772 689250 or email hello@inspiredenergy.co.uk. https://inspiredenergy.co.uk/