Salix Finance has confirmed that the Public Sector Decarbonisation Scheme (PSDS) Phase 3b will open for applications for heat decarbonisation projects from September.
The PSDS scheme makes available 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 PSDS scheme is designed to help upgrade heating systems in public buildings, to ones often powered by cleaner, cheaper and renewable energy.
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. Energys Group delivered over 70 LED lighting upgrades under Phase 1 of the PSDS Scheme.
Phase 3 of the Public Sector Decarbonisation Scheme was also announced in 2021, and the first phase of PSDS Phase 3 is Phase 3a which closed to new applications in November last year. These projects are currently being delivered.
Salix, who administrate the scheme, says: “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.
LED Lighting upgrade projects are not eligible for this phase of funding. However, successful applications made by organisations who qualify for heat decarbonisation upgrades can be used to fund other carbon saving technologies such as Solar PV, LED lighting. The key focus of this scheme, however, is to move public sector buildings away from inefficient fossil fuel powered heating.
Applicants have 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.
- 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.
Salix has organised a schedule of webinars to explain the details. Its website contains all the information you need to know about PSDS Phase 3b including scheme Guidance Notes, FAQs, Terms and Conditions, application form and questions as well as a selection of videos to help guide you through the scheme.
How we can help
For organisations with a heat decarbonisation plan in place who would like advice on LED lighting or other low carbon upgrades, please contact our school’s team.