Government launches Phase 3 of the Public Sector Decarbonisation Scheme
The government has announced a third phase of the Public Sector Decarbonisation Scheme to fund low carbon heating projects in public sector buildings.
As with previous rounds, grants will be awarded to projects which include the replacement of end-of-life fossil fuel heating systems (such as gas boilers) with low carbon heat sources, such as heat pumps or solar thermal.
To encourage a “whole building” approach to decarbonisation, heating system replacements should also be ‘bundled’ with energy efficiency measures such as building management systems, insulation, and metering. The full list of eligible technologies is on the Salix website.
Tackling the heat challenge
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 move to low carbon heating when existing systems reach the end of their working lives
Public sector bodies in England are eligible for funding, including NHS Trusts, maintained schools and local authorities.
Changes to the scheme
Phase Three brings some important changes compared with previous schemes. There is no funding cap, so applicants an apply for any grant value they like. However, the total amount of funding available is not yet known and will be announced after the government’s spending review in the autumn.
The third phase also allows for multi-year funding. 15% of the pot will cover more complex projects where boilers are expected to come to the end of their working lives in the next two or three years, and where the work to prepare the buildings for low carbon heating needs to start in the financial year 2022/23. For example, buildings may require significant upgrades to their fabric or electrical infrastructure before low carbon heating can be installed.
Dates and deadlines
The scheme opens for applications on Wednesday 6th October 2021 and closes at 2pm on Wednesday 3rd November 2021. For more information, read our guide to Phase 3 of the Public Sector Decarbonisation Scheme.
The application portal opens on 6th October 2021 on the Salix website.
