This is where you will find all the information you need to know about the latest phase of the Public Sector Decarbonisation Scheme, Phase 3b. This includes the scheme Guidance Notes, FAQs, Terms and Conditions, alongside their client journey slides as well as a selection of videos to help guide you through the scheme.
Once you have read this information, please do join one of their webinars currently scheduled for August 5, 9, 12 and 16 where you will have a chance to meet the Salix team as well as representatives from the Department for Business, Energy and Industrial Strategy (BEIS). They look forward to seeing you.
Funding: The Public Sector Decarbonisation Scheme provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures.
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 we know 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.
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.
We are always grateful for client feedback and a lot has been learned since launching PSDS and all feedback has been carefully considered. And 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.
The scheme, delivered by Salix Finance, gives Applicants 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.
Application types:
- 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.
