Concept’s guide to Phase 2 of the Public Sector Decarbonisation Scheme
The government recently announced additional grant funding to help decarbonise public sector buildings. Here’s our short guide to Phase 2 of the Public Sector Decarbonisation Scheme.
Phase 2 of the Public Sector Decarbonisation Scheme
If you’re working in a public sector organisation, you may already be familiar with the Public Sector Decarbonisation Scheme, which launched last year.
Phase 1 has now closed, but the government has recently announced a further £75 million of funding under Phase 2, which opened on April 7th 2021.
As with Phase 1, Salix is the delivery partner for the scheme.
Phase 2 of PSDS has an increased focus on heat decarbonisation, and there are some key differences compared to Phase 1, which we’ll explain in this guide.
What is the purpose of the PSDS scheme?
Essentially, PSDS provides funding for capital projects which decarbonise heating systems in public sector buildings.
One of the greatest challenges today in meeting the UK’s 2050 net zero target is decarbonising the way buildings are heated. In fact, most of the buildings in the public sector still rely on fossil fuel-based heating. The funding aims to support public sector organisations to transition to low carbon heating when existing systems reach the end of their working lives.
Which public sector bodies can apply?
The following public sector bodies can apply for PSDS funding:
- 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
For central government departments where their roles are reserved, funding may be used for estates located within the UK.
What projects can be funded under the scheme?
The focus of Phase 2 PSDS is on low carbon heating and heat decarbonisation technologies, such as heat pumps, electric heating, or connections to low carbon heat networks. Onshore wind technology and biomass boilers are also included. The full list of eligible technologies is on the Salix website.
There are ten criteria that projects must meet (the first two criteria are new to phase 2):
- Applicants must have and be using a fossil-fuelled heating system.
- The heating system in question should be coming to the end of its useful life.
- Applications must include a measure to contribute to decarbonising the heating with a low carbon heating system.
- Applicants can include energy efficiency measures and other enabling works where they support a ‘whole building’ approach to decarbonisation.
- The funding provided to save a tonne of non-traded carbon (CO₂e) over the lifetime of the project must be no more than £325 (this is automatically calculated by the online support tool).
- The funding is for capital works, but external consultancy and management fees may be included.
- Reasonable enabling and ancillary works may be included in the application, provided they are directly linked to the core technologies being installed.
- Individual applications can be made up to, but should not exceed, £5 million in value although an applicant can submit more than one application.
- Eligible bodies must either own the building that the funding is being used to upgrade or have a long-term lease arrangement where the contract allows for any savings to be passed to the eligible body.
- Projects must be completed by 31st March 2022.
Key dates and deadlines
Applications for Phase 2 of PSDS open on April 7th 2021 and will close when sufficient high-quality applications have been submitted.
What is the maximum amount we can apply for under the PSDS?
Funding for each individual project that reduce non-traded emissions will be capped at £5 million, although you can apply for multiple projects if you have multiple sites. There is no minimum amount that organisations can apply for.
How to apply for funding through the PSDS
Phase 2 PSDS applications can be made via the Salix website.
How Concept can help
At Concept we have successfully supported many organisations with Salix-funded projects, from initial application through to project delivery.
If you are looking to set long term goals for the decarbonisation of your estate, we can help you develop a robust Decarbonisation Plan – with practical, achievable steps. Get in touch for advice, or if you’d like to learn more.