Public Sector Decarbonisation Scheme

The Public Sector Decarbonisation Scheme (PSDS) provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures. As a consultancy specialising in energy management and net carbon neutral projects, CO2 Target has been working with public sector organisations to identify feasibility and process grant applications for the scheme. We understand how to make a compliant grant application.

Managing Decarbonisation Scheme Applications

Our experienced, independant team will work with your organisation to assess your assets and create an action plan on each area. Plans will include the development of heat decarbonisation and energy management upgrade projects. We provide ongoing project management support and assist with all grant applications.

The scheme, delivered by Salix Finance, gives organisations the opportunity to submit separate applications for separate projects or combine several projects in a single application for a single year fund allocation or a multi-year fund allocation.

Who Can Apply?

Public sector bodies that are contracting authorities in England as defined in the Public Contracts Regulations 2015 are eligible to apply for Phase 3b of the PSDS.

This includes:

Central government departments and their arm’s length bodies (set out in Public Bodies as published by the Cabinet Office). For central government departments where their roles are reserved (i.e., not devolved Governments of Scotland, Wales and Northern Ireland), funding may be used for estates located anywhere within the UK

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

Exclusions: Public Corporations and private sector organisations are not eligible. Registered charities are also not eligible, unless they are also non-departmental public bodies as defined by the Cabinet Office.

Decarbonisation Scheme Funding

Phase 3b will allocate up to £635m of funding to public sector organisations, to be spent in financial years 2023/24 and 2024/25. This is split by financial year, with up to £402m to be allocated for 2023/24 and up to £233m to be allocated for 2024/25.

The Scheme

The PSDS scheme is designed to help upgrade heating systems in public buildings, to ones often powered by cleaner, cheaper and renewable energy.

This will help reduce fossil fuels as well as making public buildings more comfortable and cheaper to warm. This is important as CO2 Target knows most of the buildings in the public sector still rely on burning fossil fuels for heating, hot water and catering.

The Department for Business, Energy and Industrial Strategy (BEIS) initiated the PSDS funding to help meet the UK Government’s carbon emissions targets. Phase 1 of PSDS was launched in 2020, followed by Phase 2 in 2021.

Did your organisation benefit from previous phases of this scheme? Work with CO2 Target and benefit from funding to help you achieve your decarbonisation goals. Register for a FREE Public Sector Decarbonisation Fund Eligibility Assessment

Phase 3

Phase 3 of the Public Sector Decarbonisation Scheme was also announced in 2021. The first phase of PSDS Phase 3 is Phase 3a which is now closed to new applications. These projects are currently being delivered.

Although Phase 3b PSDS builds on Phase 3a, refinements have been implemented to reflect stakeholder feedback regarding the proportion of funding made available for financing projects that deliver over more than one financial year.

Other changes sharpen the scheme’s focus on cost effective decarbonisation of heat and the overall achievement of carbon emission savings.

Application Types & Deadlines:

Single year applications are required to complete their projects by 31 March, 2024.
Multi-year applications are for projects which will take more than one financial year to deliver and are required to complete by 31 March 2025. The intention is also to allow Applicants to apply for funding at the Phase 3b application window for projects with spend in 2024/25 only, using 2023/24 as a planning year.
On application, organisations must state whether they intend to apply for a single year project or a multi-year project.

Working With CO2 Target

CO2 Target can work with your staff to submit separate applications for separate projects. Alternatively, we can combine several projects in a single application for a single year fund allocation or a multi-year fund allocation.

By using CO2 Target for your application, you will benefit from receiving a feasible, actionable plan based on our assessments of your assets. Our independent approach means we can create solutions at the best possible cost. Since no two buildings are the same, an energy solution should be tailored to a building. In other words, off the peg systems or those that only focus on one aspect of energy won’t deliver you the best results.

Co2 target has a proven track record in supporting grant and funding applications to achieve funding for energy saving solutions, energy management and decarbonisation goals. Once the grant is secured our independent, specialist engineers and project managers will oversee the project delivery, ensuring all programmes are completed within time and budget

Let us help you apply for the Public Sector Decarbonisation Scheme funding. Get in touch today.