Communities to benefit from share of £630m to install green energy measures

Schools, universities, hospitals and museums to boost their energy efficiency 

More than £600 million of clean energy projects are set to go ahead, thanks to the latest phase of the Public Sector Decarbonisation Scheme.

Schools, universities and hospitals and more will benefit from a share of £630 million to make energy saving and clean power upgrades under the latest round of the scheme. 

The fund, launched in October 2024, is worth £940 million and will run until financial year 2027/8. 

Although the majority of public organisations have received their grant offer letters under the latest phase, some grants are still to be awarded. A list of those awarded can be seen on gov.uk

The scheme is delivered by our teams at Salix on behalf of the Department for Energy Security and Net Zero.

It will pay for a range of measures including heat pumps, solar panels, insulation and double glazing, helping to reduce the UK’s reliance on fossil fuels.

The government say this will contribute to significant savings for taxpayers over the next 12 years.

Salix chief executive Kevin Holland said: “It’s more important than ever that we focus on what is happening to our planet, with a key priority to reduce carbon emissions from buildings.

“We’re proud to deliver these energy efficiency projects together with our stakeholders.

“Government funding and effective partnerships will help to achieve the UK’s ambitious net zero 2050 goals.”

Rossendale Borough Council has secured £1.4 million from the scheme to support its ambition to become carbon neutral by 2030.

Rossendale Councillor Adrian Lythgoe, Lead Member for Corporate Services and Environment said: “Achieving the national green agenda begins with action at a local level.

“This project demonstrates how effective collaboration, and strategic investment can transform public spaces into cleaner, more energy-efficient environments.

"It brings us closer to our net-zero target by 2030, while also reinforcing our commitment to delivering a high-quality environment for residents. 

“By significantly reducing carbon emissions, lowering our reliance on fossil fuels, and modernising key leisure facilities, we’re investing in a more sustainable future for Rossendale." 

Hull City Council has secured £4,935,960 million of funding. The grant will support the council’s match funding contribution of £1,778,148 million towards the delivery of the project which will see the Guildhall, Hull City Hall, Hull History Centre and the Wilson Centre subject to building energy efficiency and decarbonisation works.

Benefits of the works include estimated carbon savings of 3400 tonnes over the next 20 years and £154,000 of energy savings annually.

Cllr Charles Quinn, portfolio holder for environment at Hull City Council, said: “This grant will support the council towards the delivery of the project which will see the Guildhall, Hull City Hall, Hull History Centre and the Wilson Centre subject to building energy efficiency and decarbonisation works.”

The London Borough of Richmond Upon Thames has secured a major £7 million grant.

Cllr Julia Neden-Watts, Chair of the Environment, Sustainability, Culture and Sports Committee, said: “Tackling the climate emergency requires bold, practical action.

“This funding allows us to accelerate our transition to net zero, reducing our carbon emissions and making real improvements to community buildings.

“These sites are known and used by many Richmond residents and play a valuable role in the life of the whole borough. I am delighted that the council is making progress towards a cleaner, healthier future – and doing so in a way that benefits the whole community.”

The projects awarded also include the University of York’s pioneering geothermal-powered heating network, which has received £35 million to capture energy from beneath the Earth’s surface to help deliver low-carbon heat to buildings on campus.

The National Portrait Gallery has been awarded over £5 million to switch from gas heating to heat pumps in its main public gallery and Orange Street building, which houses the archives of the library. 

The Horniman Museum and Gardens has won £600,000 to help to upgrade its Butterfly House on its Grade II listed site in London with double glazing and draught-proofing. 

Minister for Energy Consumers Miatta Fahnbulleh said: “Clean heat and lower energy bills can go hand in hand. 

“That is why we are providing even more support for Britain’s buildings – from schools to museums and galleries, helping to rebuild vital public services as part of the Plan for Change.”