Public Sector Decarbonisation Scheme
The Public Sector Decarbonisation Scheme provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures.
Phases 1, 2 and 3 of the Public Sector Decarbonisation Scheme are now closed to applications.
Phase 1 of the Public Sector Decarbonisation Scheme provides £1 billion in grants as part of the Chancellor’s ‘Plan for Jobs 2020’ commitment to support the UK’s economic recovery from COVID-19, supporting up to 30,000 jobs in the low carbon and energy efficiency sectors.
Phase 2 of the Public Sector Decarbonisation Scheme provides £75 million of grant funding for the financial year 2021/2022. It has a stronger focus on heat decarbonisation than Phase 1, in order to deliver greater carbon emission reductions. It supports the public sector in taking a ‘whole building’ approach when decarbonising their estates.
Reflecting the importance of the public sector’s role in meeting the government’s commitment to net zero by 2050, the Net Zero Strategy and Heat and Buildings Strategy confirmed that Phase 3 of the Public Sector Decarbonisation Scheme will receive £1.425 billion of funding over the period 2022/2023 to 2024/2025. Further detail will be published in due course. Applications are submitted at the risk of the applicant.
Applications will be assessed, and funding awarded to eligible projects, in the order in which applications are received. Grant offers will only be made after the total funding for the Phase 3 Public Sector Decarbonisation Scheme is confirmed. We do not expect to be able to inform applicants if they have been successful until 2022.
Phases 1, 2 and 3 of the Public Sector Decarbonisation Scheme are managed by the BEIS delivery body Salix Finance. For more information about the scheme, please see the Salix Finance site.
Documents
Last updated 6 October 2021 + show all updates
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PSDS Phase 3 now open to applications.
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Further information about Phase 3 added. It will open to applications on Wednesday 6 October 2021.
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First published.