The Public Sector Decarbonisation Scheme (PSDS) is the main grant-funding programme for phasing out fossil fuel heating plant and improving energy efficiency in public sector sites, including schools and colleges. The aim of the scheme is to reduce direct carbon emissions from public sector buildings as far as possible.
The scheme is run by Salix Finance and PSDS4 provides capital funding from 2025/26 to 2027/28.
Applications can be made for the funding of low-carbon heating systems (e.g. air source heat pumps and grounds source heat pumps). Where suitable, applications can also include fabric improvements and energy efficiency measures to reduce the heat or electrical demand of the buildings due to be heated by the proposed low-carbon system.
For a building to be eligible, it must have a fossil fuel heating plant that is 10 years or older. It is also important that the project has not already started and would not take place without PSDS funding.
Applicants are responsible for contributing the cost of a like-for-like replacement of the existing fossil fuel system or a minimum of 12% of the total project cost.
The scheme is open for grant applications from 9th October to 25th November, so time is of the essence! Grant funding will be allocated based on application grant carbon cost to ensure that the maximum carbon emissions are reduced. Funding will be awarded by the end of May 2025 and projects must be delivered by 31st March 2028.
PSDS is by far the best funding route for school estate decarbonisation. If you think your school, college or multi-academy trust could benefit from low carbon heating systems and energy efficiency improvements, then this could be the scheme for you. For free of charge support with your grant application, get in touch with us as soon as possible at: https://www.reenergisegroup.com/contact-us/