Phase 4 Public Sector Decarbonisation Scheme

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

An additional financial year of funding has been granted for Phase 4. It focuses on buildings in the public sector (local and central government departments) and what it describes as ‘arm’s length’ bodies in England. There is no minimum or maximum grant on offer as long as applicants can contribute the cost for a like-for-like replacement of the existing fossil fuel heating plant at a minimum of 12% of total project costs.

Guidance documents and further information can be found on the Salix Finance website.

The solution for you

Heat decarbonisation in the built environment

At Mitsubishi Electric we have been working on and championing innovative solutions that help to reduce carbon emissions from the built environment for decades.

Our expertise and pivotal technology has enabled us to develop renewable heating solutions that can address decarbonisation head-on. Our range of commercial Ecodan, e-series and Climaveneta air source heat pumps can lower running costs and reduce carbon footprints.

 


Find out more about low carbon heating solutions here
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A focus on low carbon and renewable heating

One of the programmes included in this push is the Public Sector Decarbonisation Scheme (PSDS). The Government has set aside £1.17 billion for universities, schools, local government, central government departments and NHS Trusts.

The money is available to allow these organisations to install energy efficiency measures and low carbon heating technologies. Since heating can make up almost 50% of the operational costs of a building, switching to a more efficient approach not only reduces the nation’s carbon emissions, it can also significantly reduce energy bills


Salix Funding Phase 4
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Who can apply?

Public sector bodies that are contracting authorities in England are eligible to apply for Phase 4 of the PSDS. These include.

  • Central government departments and their arm’s length bodies
  • 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

Public bodies may apply jointly, with an agreed ‘lead applicant’.

An important point is that energy savings from the PSDS must benefit the applicant. For example, take a university that outsources its estate management to a company which pays the organisation’s energy bills. In this case, the university would not be eligible for the grant since it would not benefit directly from the energy savings.

Organisations which are not eligible for the grant include public corporations; registered charities; social housing and private organisations.

What are the Phase 4 PSDS main eligible measures?

The focus of the grant scheme is to make public sector buildings more energy efficient and to encourage a move towards low carbon heating technologies.

Energy efficiency measures can include installation of better insulation and glazing, for example. A project might involve adding better heating controls; or it could involve the removal of a gas boiler for replacement with a heat pump.

The most important criterion for a project is that it must cost no more than £510 to save 1 tonne of carbon (CO2e) over the lifetime of the project

Eligible Projects

In Phase 4, project categories have been replaced with a targeted allocation system. The scheme now prioritises projects that best demonstrate carbon cost effectiveness and carbon reduction potential. Heat pumps offer a highly effective solution for heating and hot water in buildings.

The full Phase 4 Public Sector Decarbonisation Scheme (PSDS) Guidance can be found here.

Get in touch today

Mitsubishi Electric is here to assist public sector bodies with low carbon HVAC technologies.

Download PSDS Whitepaper

Mitsubishi Electric have collated a white paper about Phase 4 of the Public Sector Decarbonisation Scheme to help navigate securing funding for your project.