Eligible Technologies

The purpose of the Grant Scheme is to help make eligible buildings more energy efficient and install low carbon heating measures, for example, insulation, glazing, heating controls, and heat pumps.

The projects must also fit into one or more of the below four categories:

Category One Technologies that directly contribute to the heat decarbonisation of a building by installation of a low carbon heating. For example, heat pumps and connections to low carbon heat networks.
Category Two Technologies that do not directly contribute to the heat decarbonisation of a building but reduce overall energy demand and so will support future heat decarbonisation. For example, insulation, glazing, ventilation.*
Category Three Technologies that do not reduce carbon emissions but enable future heat decarbonisation projects to take place – these technologies are exempt from the requirement to meet the £500/tCO2 lifetime criteria. For example, metering, electrical infrastructure, battery storage.*
Category Four

Technologies that are only permitted if:   
(a) they are used to replace coal-fuelled heating systems or oil-fuelled heating systems, 

(b) if, in Salix’s reasonable opinion, it has been demonstrated that it is not viable for a low-carbon heating system to be installed within the building as a replacement for the coal-fuelled heating or oil-fuelled heating system.  

For example, gas-fired CHP and gas boiler replacement projects would fit into this category provided they meet the above conditions. 

*Projects that fall into Category 2 and Category 3 must meet either one of criteria A, B or C as outlined below. Supporting commentary and evidence is needed to demonstrate how each Category 2 and 3 project meets any one of the criteria. 

Criteria A: Category 2 and 3 measures are combined with measures in Category 1. 

Criteria B: Category 2 and 3 measures are for buildings that already use low-carbon heating for all their heating requirements. 

Criteria C: A written commitment is made to future heat decarbonisation for the buildings in which measures are installed, which includes all of the following: 

(i) A commitment to produce and submit to Salix, a Heat Decarbonisation Plan by 30 September 2021. 

(ii) An explanation within the Heat Decarbonisation Plan setting out how the building(s)’ fossil fuel heating systems will be replaced by low carbon heating when the fossil fuel system(s) reaches the end of their natural lifetime. It is important to consider what will happen when your current heating plant has reached the end of its life and suitable upgrades have not been made to your building to manage this. The type or types of low carbon heating systems, and the likely timescale for this, must be identified. A template for this Heat Decarbonisation Plan is provided if there isn’t an existing document, and this can be used to help create this plan if support is needed. 

(iii) The Heat Decarbonisation Plan must include details of how it has been approved by their public body, how this plan is going to be implemented and that there is a commitment to apply for and utilise funding where available to deliver the Heat Decarbonisation Plan. 

The Heat Decarbonisation Plan will enable public bodies to plan their approach to decarbonisation and their contribution to meeting the 2050 net zero target. 

A full list of technologies eligible through the grant scheme can be found below or downloaded here.    

Street lighting is not eligible for this Grant Scheme, but can still apply for the Salix Energy Efficiency Loan Scheme. Boiler upgrades without certain conditions explained in Category 4 above are also not eligible for the Grant Scheme, but can apply for the Salix Energy Efficiency Loan Scheme

Information about RHI Tariffs 

Eligible bodies are not able to apply to the Grant Scheme for projects that will also utilise the renewable heat incentive (RHI). Ofgem rules on claiming RHI state that organisations looking to utilise RHI must repay other Public Grants beforehand. Therefore, an organisation would not be able to claim the RHI in conjunction with the Public Sector Decarbonisation Scheme. 

For further information, please email [email protected]