The UK Government’s Public Sector Decarbonisation Scheme (PSDS) is designed to support the reduction of emissions from the UK’s public sector buildings – the target for which is a reduction of 75% by 2037, when compared to 2017. With three phases of the scheme now completed and a fourth now open for applications, here’s all you need to know about it and the most up to date details that have been published thus far.
What is the Public Sector Decarbonistion Scheme?
The UK is full of historic buildings and many of these are owned and operated by public sector bodies and organisations. If the UK is to reach its goal of achieving net zero carbon emissions by 2050 – these buildings will need to be greener, or more specifically ‘decarbonised’.
The Public Sector Decarbonisation Scheme is a fund created by UK government and delivered by Salix Finance, that provides vital moneys to the public sector to decarbonise these buildings. The money can also be used towards other energy efficiency measures, such as draught proofing and insulation.
Previous phases
Phase 1
Value: £1 billion
Years delivered: 2020 – 2022
Summary of completed projects
Phase 1 of the PSDS focused largely on the skills required to decarbonise public sector buildings. It came as part of the Chancellor’s Plan for Jobs 2020 and supported the creation of 30,000 new jobs across the green energy sector.
Phase 2
Value: £75 million
Years delivered: 2021 – 2022
Summary of completed projects
Phase 2 of the PSDS focused more on the decarbonisation of entire buildings and once again was delivered through a series of grants to various public sector bodies.
Phase 3
Value: £1.425 billion
Years delivered: 2022-2023 / 2025-2026
Summaries of awarded projects
The most comprehensive phase of the PSDS so far, Phase three is being delivered in three parts, with three application windows – the last of which closed in November last year. Once again, the grants are provided for projects which will decarbonise entire buidings and public sector estates.
Phase 4
Value: To be decided at the Spending Review
Years delivered: 2025 – 2026 / 2027 – 2028
The application period for Phase 4 of the PSDS opened on 9th October 2024 and is due to close on 25th November 2024. The criteria for public sector bodies who wish to apply for the PSDS must meet the criteria outlined on the Salix website.
Changes to awards made under Phase 4
In previous phases, grants have been allocated on a first-come, first-served basis. Phase 4 is the first phase that will be allocated on a targeted basis. This means each application will be allocated in line with each project’s forecast ‘grant carbon cost’.
The grant carbon cost is calculated by dividing the requested grant value by the direct carbon savings that will be made by the grant funding only. The lower the grant carbon cost, the more likely a project is to be successful.
At ThermaMech we’ve worked on numerous PSDS funded projects, here close to our base in Bristol and in other parts of the country. With vast experience in handling the unique challenges and constraints of working with public infrastructure, we are uniquely placed to support you in any future project. To find out more about our work on such projects, visit our case studies page.
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