Ask ME about the Public Sector Decarbonisation Scheme

£75 million available in public sector funding for decarbonisation schemes

On 17th March 2021, Salix Finance announced that Phase 2 of the Public Sector Decarbonisation Scheme (Phase 2 PSDS) will be delivered in 2021-22. The government has allocated £75 million of funding and this is available to eligible organisations as grants.

 It will have a stronger focus on heat decarbonisation than Phase 1 in order to deliver greater carbon emission reductions to help meet the UK’s Net Zero 2050 targets. Phase 2 PSDS will support the public sector in taking a ‘whole building’ approach when decarbonising their estates.

 Phase 2 PSDS opens to applications at 14:00 on 7 April 2021. It will close when sufficient high-quality applications have been submitted, with all successful projects needing to be complete by 31 March 2022.

Who can apply?

The organisations eligible to apply for the Grant Scheme are the same as for Phase 1 PSDS. These include:

• Central government departments and their non-departmental government bodies (set out in Public Bodies1 as published by the Cabinet Office)
• For central government departments where their roles are reserved (i.e. not devolved to Scottish, Welsh and Northern Irish Governments) funding may be used for estates located anywhere within the UK
• Emergency services
• Institutions of further and higher education
• Local authorities
• Maintained schools within the state education system, including academies, Multi-Academy Trusts and free schools; nursery schools maintained by a local authority
• NHS Trusts and Foundation Trusts
• Non-departmental public bodies

Schools funded by charities, private schools, private colleges and private universities are not eligible to apply. Phase 2 PSDS will offer grants of up to a maximum of £5m per application for projects that reduce non-traded emissions. There is no minimum sum.

Eligible technologies

Examples of eligible technologies can be found in this list provided by BEIS. As Phase 2 PSDS is focused on heat decarbonisation, funding for fossil-fuelled heating is excluded from the scheme, this included gas replacement boilers and combined heat and power technologies that run even partially on fossil fuels. 

 Eligible technologies have been split into 3 project types. As an innovative manufacturer of low carbon heating, energy-efficient chillers and ventilation technologies, our product ranges fall within all 3 project types. These categories are described like so:

How can Mitsubishi Electric help you?

At Mitsubishi Electric we are committed to being a leading voice within the push to decarbonise heating and cooling in the built environment. We understand that Phase 2 PSDS offers a very real chance to bring projects forward that can make a tangible difference. As such, we have appointed Kevin Pocock, one of our Business Development Managers to head up our response to this grant scheme. Kevin brings a wealth of experience and knowledge to this role, having been our principal point of contact for Education and Public Sector clients for many years.

If you would like any further information please do not hesitate to contact Kevin Pocock directly via email or connect with him on LinkedIn. He will be happy to discuss your project and what Mitsubishi Electric can do to help you achieve your funding goals.