Salix Finance has confirmed that the Public Sector Decarbonisation Scheme (PSDS) Phase 4 will open from 9th October and will close on November 25th 2025.
Launched on 23.09.24, the main strategic objective of the scheme, which is delivered by Salix Finance, is to reduce direct carbon emissions from public sector buildings.
Through Phase 4 of the Public Sector Decarbonisation Scheme, the Department for Energy Security and Net Zero will make capital funding available from 2025/26 to 2027/28. The value of available funding and the profile split across the three financial years will be confirmed in due course.
Act swiftly… PSDS Phase 4 timelines are tight!!
- Funding for Phase 4 Public Sector Decarbonisation Scheme was confirmed in December 2023 by UK government with details published in February 2024.
- The scheme was launched on 23 September 2024 with the Phase 4 Guidance Notes published on the same day. The portal will open for applications in mid-October and will close on 25 November 2024.
- Applications will be assessed once the application portal closes, and all successful applications will be awarded funding by approximately the end of May 2025.
- Projects must be delivered by 31 March 2028.
Key to eligibility is the existing heating system requirements. Each building within the application must be served by a fossil fuel heating plant at the end of its useful life. This is generally 10 years or older.
Is LED lighting eligible for funding?
LED Lighting upgrade projects are not directly eligible for this phase of funding. However, applicants can include fabric improvements and energy efficiency measures where they reduce the heat or electrical demand of the building being heated by the proposed low carbon heating plant (i.e., insulation, double glazing, LEDs and solar panels).
Energy efficiency measures (i.e., insulation, double glazing, LEDs, solar panels and swimming pool covers) are only eligible for Public Sector Decarbonisation Scheme funding if they are installed in a building that is also installing a Public Sector Decarbonisation Scheme-funded low carbon heating source as part of the same project.
Understanding what’s new
Alongside the Department for Energy Security and Net Zero, Salix Finance has produced a series of Phase 4 Public Sector Decarbonisation Scheme videos. These are designed to help public sector estates team navigate the new scheme. We recommend you take a watch – they’re very helpful
- Introduction and guidance video
- Frequently asked questions video
- Calculating carbon cost explanatory video
- Targeted allocation explanatory video
How Energys 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.
Information correct as at: 27.09.24 / key information taken from Salix Finance’s notes and guidance.
