Decarbonisation
Unlocking Net Zero Success Through Smart Property Investment
Act now to access £230 million of Public Sector Decarbonisation Scheme (PSDS3c) funding for your property decarbonisation plans, says Kelly Crews.
The Department for Energy Security and Net Zero (DESNEZ) and its delivery partner Salix Finance have made £230 million available for low-carbon and energy-saving improvements to public sector buildings for 2024/25, with further funding for 2025/26 to be confirmed this autumn.
Phase 3c of the Public Sector Decarbonisation Scheme (PSDS) will support the work of councils, NHS Trusts, universities, schools and government agencies or departments to make their property climate change resilient and meet Net Zero targets.
With an additional financial year of funding granted by DESNEZ for Phase 3c, it increases the value of the overall funding to the scheme and will enable Phase 3c projects to be delivered across two years.
There are two application types in PSDS phase 3c:
It is important to prepare in advance when applying for PSDS funding, understanding the buildings you wish to target and identifying the most suitable low carbon solutions whilst ensuring you meet PSDS funding criteria.
The application guidance including the application form is available now on the Salix Finance website here
Funding is extremely competitive, so it is vital to start preparation now.
Our Decarbonise Today team has specialists to help you take advantage of the latest round of Public Sector Decarbonisation Scheme funding. We can support the preparation of your grant application, procurement routes, and overall delivery of your project. We understand the PSDS scheme and the importance of being ready to apply when the portal opens for submissions in the Autumn.
Our specialist team has over 30 years’ combined experience and includes:
We will assign a dedicated person to work with you to develop your application. We will base our advice on current and recent experience of delivering projects on the ground to ensure project viability and mitigate delivery risks.
PSDS encourages a ‘whole building approach’ while also replacing ‘end of life’ fossil fuelled heating systems with low-carbon solutions such as heat pumps.
The grant funding has value for money criteria and will fund up to £325 for each ton of carbon emissions saved over the project lifespan. Every applicant must pay for the ‘like for like’ replacement costs of the fossil fuel system, contributing a minimum of 12% of the project cost. Application requirements are quite complex, so it is worthwhile appointing experienced advisers.
Funding is chiefly for capital costs, but the cost of external consultancy and management fees may be included.
Click here to speak with our team
Click here to go directly to the funding portal