Public Sector Decarbonisation Scheme due to open

  • 01/09/2022
  • Written by NHS Procurement in Partnership

Member trusts may be interested to learn that a government funding opportunity, aimed at decarbonising public sector buildings, is available to them for updating hospital heating systems to greener, low carbon ones and implementing energy efficiency measures.

The government’s Public Sector Decarbonisation Scheme (PSDS) will once again be inviting NHS and foundation trusts to apply for funding to replace fossil-fuel heating technologies with greener, more efficient, low to zero carbon systems.  The scheme, which takes a ‘whole building’ approach to decarbonising heating, is also open to emergency services and local authorities.

Funded by the Department for Business, Energy and Industrial Strategy (BEIS) and delivered by Salix Finance, the scheme launched in autumn 2020 as part of the government’s ‘Build Back Greener’ campaign.  The application window for Phase 3b of the scheme is due to open sometime in September.

To qualify, applicants must be using a fossil-fuelled heating system which is coming to the end of its useful life.  Funding for capital works (external consultancy and management fees may be included) can be used for public sector estates anywhere in the UK.  The new heating system, alongside energy efficiency measures, must meet the heat demand of the original end of life fossil fuel heating system.

Application forms are available to download for completion now from the Salix Finance website.

Time is of the essence as, once the applications portal opens in September, applications will be allocated on a first-come-first-served basis until a sector cap is reached. For more details and to avoid missing the applications window, you can keep up to date with the latest information on the scheme by signing up for the Salix Finance bulletin.

Guidance notes on Phase 3b of the scheme, giving eligibility criteria and key dates for submitting applications, can be found on the Salix Finance website.

It is expected successful applicants will be notified by the end of January 2023.

All applicants awarded funding for single year projects must complete all projects by Sunday 31 March 2024.  Those successful for multi-year projects must complete by Monday 31 March 2025.

PSDS Phase 3 will provide £1.425 billion of grant funding to the wider public sector between 2022-2025, in support of the aim to reduce carbon emissions from public sector buildings by 75% by 2037.  In Phase 3a of the scheme £329,562,913 was secured in funding by the NHS across 28 trusts.

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