Phase 1 Public Sector Decarbonisation Scheme

Latest updates: 

01.02.22 Phase 1 Public Sector Decarbonisation Scheme: Section 98 Grants

For all other projects not covered under Section 31, please see your change request form here.

31.01.22 - Heat Decarbonisation Plans Quality Assurance Checklist

Phase 1 PSDS has provided grant funding to the public sector to put in place or update an existing heat decarbonisation plan. 

Please see here for our guidance which outlines the key elements that we expect to find in all Heat Decarbonisation Plans. These underpin our quality assurance checks.

To make the process as easy as possible for both grant recipients and Salix Finance, we ask you to complete a checklist to submit with your Heat Decarbonisation Plan. Please see the document and complete your checks. Thank you.

13.01.2022 Phase 1 Public Sector Decarbonisation Scheme: Section 31 Grants 

BEIS has given Salix Finance approval to allow Phase 1 Public Sector Decarbonisation Scheme (PSDS) projects that have been funded under Section 31 of the Local Government Act 2003 to have longer to complete.  

Some PSDS Phase 1 grants were made under Section 31 of the Local Government Act 2003 which provides Government with a general power to give grants to local authorities for any purpose. The definition of local authorities includes unitary, district and council councils, Combined Authorities and police and fire authorities.

Under Section 31 it means that if a project cannot be completed by 31 March 2022, Salix Finance can exercise discretion in approving practical completion dates up to, but no later than, 30 June 2022...Read more here. 

The Phase 1 Public Sector Decarbonisation Scheme

Thank you to everyone who has applied to the Public Sector Decarbonisation Scheme - you have done this at a time when you are also managing the impact of COVID-19 on your public services and the lives of your staff and the communities you serve. Thank you for all you do.  

All of us at Salix are delighted that the schemes have attracted such a wide range of inspiring applications from public sector organisations across England looking to tackle climate change, support economic recovery and work towards the UK's net-zero target. 

The funding provided by the Department for Business, Energy and Industrial Strategy has provided a great boost to the public sector at a time when so many are thinking about our environment, our economy and the future of our planet.

Salix is currently assessing projects and we look forward to informing applicants of the funding decisions, supporting grant recipients in delivering projects that will make a great contribution to reducing carbon emissions and supporting jobs. We recognise however that some applicants will be disappointed as the value of applications on both grant schemes outweighs the funds available. We look forward to working with all applicants in the future.

The Phase 1 Public Sector Decarbonisation Scheme has now closed for new applications as of 11 January 2021.  

Organisations funded through the Public Sector Decarbonisation Scheme 

Information on grants confirmed for the Public Sector Decarbonisation Scheme can be found on the PSDS page. This list will be updated regularly until all funding has been allocated. 

If you would like to discuss your application with Salix, please get in touch at [email protected] and a member of the Salix team will be in touch with you shortly. 

The Department for Business, Energy and Industrial Strategy (BEIS) has launched the Public Sector Decarbonisation Scheme (referred to as the Grant Scheme) which will be delivered by Salix. 

The Grant Scheme will offer £1bn of grant funding which aligns with BEIS’ new mission and priorities: fighting coronavirus, backing business, unleashing innovation and tackling climate change. The scheme will also encourage green investment, supporting the Government’s net-zero and clean growth goals. 

The scheme will be available for capital energy efficiency and heat decarbonisation projects within public sector non-domestic buildings, including central government departments and non-departmental public bodies in England only, and will deliver the following objectives:  

  • Deliver stimulus to the energy efficiency and heat decarbonisation sectors, supporting jobs.  

  • Deliver significant carbon savings within the public sector.  

The scheme allows public sector bodies (PSBs) including eligible central government departments and their non-departmental public bodies in England only to apply for a grant to finance up to 100% of the costs of capital energy-saving projects that meet the scheme criteria.  

Further information about eligible bodies can be found here

Key dates

Salix welcomes applications to be submitted as soon as the project scope is designed and approved by the eligible body. 

Application Deadline for applications

All eligible bodies. 23:59 Monday 11 January 2021
Eligible bodies that wish to have their project assessed before the end of 2020. 23:59 Friday 11 December 2020

Applications will be assessed on a rolling basis and Salix expects to inform applicants within 3 weeks of applications being submitted. As covered in the application guidance document, this will be dependent on all required information being submitted at the time of application and authorisation to proceed being provided.

Applications submitted by: Applications assessed by:
Monday 12 October 2020 Friday 30 October 2020
Monday 26 October 2020 Friday 13 November 2020
Monday 23 November 2020 Friday 11 December 2020
Monday 11 January 2021 Friday 29 January 2021

For further information, or to discuss, please contact [email protected]