Skip to main content
Collection

Public Sector Decarbonisation Scheme

The Public Sector Decarbonisation Scheme provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures.

Updates to this page

From:
Department for Energy Security and Net Zero
Published:
1 October 2020
Last updated:
13 March 2025
Show all updates

  1. Added links to Public Sector Decarbonisation Scheme evaluations.

  2. Updated details on the continuation of Phase 4 of the Public Sector Decarbonisation Scheme.

  3. Added link to details of Phase 4 of the Public Sector Decarbonisation Scheme.

  4. Due to technical issues, Phase 3c is being re-run. The new application portal for Phase 3c will open on Tuesday 7 November at 2pm and close on Friday 10 November at 2pm.

  5. The application portal for Phase 3c is now open.

  6. We expect the Application Portal for Phase 3c to open on Tuesday 10 October at 2pm.

  7. Phase 3c will open to applications in autumn 2023. The Phase 3c guidance note and application form are available on the Salix Finance website.

  8. Phase 3c of the Scheme is expected to open to applications in autumn 2023.

  9. Phase 3b closed on 31 October 2022.

  10. Phase 3b open for applications 12 October 2022.

  11. Phase 3b will open for applications on 12 October 2022.

  12. Phase 3b application portal is expected to open for applications in October 2022.

  13. Phase 3b application window is planned to open in September 2022.

  14. PSDS Phase 3 now open to applications.

  15. Further information about Phase 3 added. It will open to applications on Wednesday 6 October 2021.

  16. First published.

The Public Sector Decarbonisation Scheme supports the aim of reducing emissions from public sector buildings by 75% by 2037, compared to a 2017 baseline.

The department’s delivery body, Salix Finance, manages the Public Sector Decarbonisation Scheme. Visit the Salix Finance site for more information about the scheme.

The Public Sector Low Carbon Skills Fund provides grants for public sector bodies to put in place a heat decarbonisation plan, providing them with information they need to develop future applications to the Public Sector Decarbonisation Scheme.

Both the Public Sector Decarbonisation Scheme and the Public Sector Low Carbon Skills Fund are open to public sector bodies in England and areas of reserved public services across the UK.

Phases in delivery

Phase 4 of the Public Sector Decarbonisation Scheme

In September 2024, the Department for Energy Security and Net Zero (DESNZ) confirmed the continuation of the Public Sector Decarbonisation Scheme (PSDS) for financial years 2025 to 2026 to 2027 to 2028, supporting more public buildings such as schools and hospitals to switch to cleaner heating and cut their emissions, accelerating to net zero.

Phase 4 closed to new applications in November 2024.

Past phases

Phase 3 of the Public Sector Decarbonisation Scheme will provide over £1.425 billion of grant funding over the financial years 2022 to 2023 and 2025 to 2026, through multiple application windows:

  • Phase 3c closed to new applications in November 2023
  • Phase 3b closed to new applications in November 2022
  • Phase 3a closed to new applications in November 2021

Phase 2 of the Public Sector Decarbonisation Scheme provided £75 million of grant funding for the financial year 2021-2022. It had a stronger focus on heat decarbonisation than Phase 1 in order to deliver greater carbon emission reductions. It supported the public sector in taking a ‘whole building’ approach when decarbonising their estates.

Phase 1 of the Public Sector Decarbonisation Scheme provided £1 billion in grants over the financial years 2020-2021 and 2021-2022 as part of the Chancellor’s Plan for Jobs 2020 commitment to support the UK’s economic recovery from COVID-19. It aimed to support up to 30,000 jobs in the low carbon and energy efficiency sectors and reduce carbon emissions from the public sector.

Scheme evaluation

Contents