£1 billion available in public sector funding for decarbonisation schemes

At the end of September 2020, the Government announced the Public Sector Decarbonisation Scheme (PSDS). This £1 billion scheme has been set up to help public sector bodies to fund energy efficiency and heat decarbonisation measures as part of the Chancellor’s ‘Plan for Jobs 2020’ commitment. The aim of which is to boost the UK’s economic recovery from Covid-19 as well as the Government’s net-zero and clean growth goals, supporting up to 30,000 skilled jobs in the low carbon and energy efficiency sectors.

Overseen by the Department for Business, Energy, and Industrial Strategy (BEIS) and delivered by Salix Finance, applications are currently open for public sector bodies to avail themselves of the fund, with the deadline for applications on January 11th 2021.

The solution for you

Removing carbon from 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.

We have put together a dedicated white-paper to assist public sector bodies with specific details of what technologies are covered by the fund and how best to apply for the grant.


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mitsubishi electric decarbonisation scheme advice

A focus on low carbon and renewable heating

The purpose of the Grant Scheme is to help Public Sector organisations to decarbonise their building infrastructure. There is, quite rightly, a particular focus on low carbon and renewable heating measures as well as the promotion of further secondary measures that help to reduce heating demand, such as; insulation, glazing, replacement air conditioning and chiller systems.


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Who can apply?

The following public sector bodies in England are eligible to apply for the Grant Scheme.

  • 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

Up to 100% grant funding can be applied for by eligible bodies for projects which meet the compliance criteria and there is no minimum or maximum grant value. All applications will be reviewed by Salix Finance on a case by case basis.

Eligible technologies

Funding is available for projects that fall within the 4 distinct categories. As an innovative manufacturer of low carbon heating and ventilation technologies our product ranges fall within categories 1 and 2. These categories are described in the literature like so:

Technologies that directly contribute to the heat decarbonisation of a building by installation of a low carbon heating. For example, heat pumps and connections to low carbon heat networks.

Find out more about our Commerical Heating range

Technologies that do not directly contribute to the heat decarbonisation of a building but reduce overall energy demand and so will support future heat decarbonisation. For example, insulation, glazing, ventilation.

Find out more about our full product range

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 this new grant scheme 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.