The Public Sector Decarbonisation Scheme (PSDS) is a government grant program designed to support public sector bodies, including schools, in implementing energy efficiency and heat decarbonisation measures. The scheme aims to reduce carbon emissions from public sector buildings while enhancing cost-effectiveness.

PSDS offers a golden opportunity for educational institutions to embrace energy efficiency and contribute to a sustainable future. At Eddisons, we have a proven track record in assisting schools, NHS hospitals, and council buildings with successful PSDS applications and project delivery property advice to clients across the education sector. Clients trust Eddisons because we understand the challenges faced – from restricted project timescales to the importance of minimising disruptions during term time and exams.

Phase 4 of the Public Sector Decarbonisation Scheme

As applications for Phase 3 of the PSDS scheme closed in November 2023, details for Phase 4 were released in February. Of the pledged £1.17 billion funding pot confirmed in December 2023, £670 million has been made available for 2025/2026 with up to £335 million already allocated to the second year of phase 3c. Of the remaining budget, a proportion will also be assigned to the Trailblazer devolution deals.

Changes to the Phase 4 application process

While further guidance on Phase 4 will be released in Summer 2024, we can expect to see a move away from the previous “first come, first served” process seen during phases 1-3. Instead, Salix have announced that applications will undergo evaluation using a targeted allocation approach, favouring projects that are able to deliver the best return on investment and maximise the potential for carbon emission reductions.

Coupled with the narrower budget allocation, the new application process will likely require a more strategic and thorough approach to thoroughly showcase the merits of their plans.

Therefore, it is vital that public sector organisations are ready to take that step to a low carbon heating future, and put a plan in place as early as possible in order to be fully prepared to submit their application as soon as the fund opens.

At Eddisons, we have successfully supported many organisations with Salix-funded projects, from initial application through to project delivery. Contact us to discuss how we can assist with submitting your PSDS application this year.

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To discuss how the Public Sector Decarbonisation Scheme can benefit your educational institution, contact Eddisons for expert guidance and support.