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Public Sector Decarbonisation Scheme: Phase 3

11 October 2021


What is it?

The Public Sector Decarbonisation Scheme (PSDS) provides grants for public sector bodies to fund heat decarbonisation whilst increasing energy efficiency measures. The Department for Business, Energy, and Industrial Strategy (BEIS) appointed Salix Finance as the delivery body of the Scheme to manage Phase 3 as well as previous phases.

The scheme was implemented to help decarbonise the UK’s public sector, in-line with the 2019 announcement of committing to reach net zero emissions by 2050. PSDS was introduced alongside the Low Carbon Skills Fund (LCSF) which is now closed, however PSDS is still open for a few more weeks.

Phases 1 & 2 so far… What Phase 3 covers?

Phases 1 and 2 of the PSDS scheme are now closed. Phase 1 applications closed on the 11th of January 2021, and phase 1 was aimed at helping the UK’s economic recovery from COVID-19, where £1 billion worth of grants were provided to support 30,000 jobs in the low carbon and efficiency sectors.

Phase 2 applications closed on the 13th of April 2021, and phase 2 had a stronger focus on heat decarbonisation in comparison to phase 1. Phase 2 provided £75 million of grant funding to help support public sector bodies looking to decarbonise their buildings.

Phase 3 of the PSDS adopts a similar focus to Phase 2, which is to concentrate on the decarbonisation of heat within the Public Sector. Aiming to combine heat decarbonisation and energy efficiency measures, which is labelled as a ‘whole building’ approach. Public Sector buildings rely on fossil fuel-based heating and as the lifespan of these heating systems diminishes, this creates a perfect opportunity to transition to low carbon heating systems.

Currently there is no confirmation on the amount of funding that will be available for Phase 3 projects, this will be determined after the year’s spending review. However, the 2022/23 budget will have 85% allocated to single-year projects with the remaining 15% being allocated to the first multi-year projects (starting in 2022/23 and ending in either 2023/24 or 2023/25).

Multi-year settlements have been introduced as part of Phase 3 of the PSDS. Multi-year grants will be available for projects lasting up to three years, as long as the costs being incurred are stated within each financial year whereby the work relating to these costs must be completed by 31st of March each year.



Who is Eligible?

Similar to Phase 2, the eligible public sector organisations who wish to apply are as follows:

  • Central Government departments (including their arm’s length bodies).
  • Emergency Services
  • Institutions of further and higher education
  • Local authorities
  • Maintained schools within the state education system
  • Nursery schools maintained by a local authority
  • NHS Trusts and Foundation Trusts

Deadline Dates, Application Process & Dates

Wednesday 6th October 2021 the portal opened for applications, then on Wednesday 3rd of November 2021 the application portal closes to assess applications received.

Applicants should ensure the grant they are applying for is for projects incurring costs no earlier than Friday the 1st of April 2022 and no later than 31st of March 2023 (for single year projects), 31st of March 2024 (for two-year projects) and 31st of March 2025 (for three-year projects).

Applicants who are successful will receive Grant Offer Letters in early 2022.

How Trident can help

At Trident Utilities we will be able to assist your organisation with assessing whether you’re eligible for Phase 3 of the PSDS. Additionally, we can offer guidance during the application process. If successful in the application process and your organisation receives a Grant Offer Letter, Trident will look at the most beneficial technologies tailored to your proposed projects and proceed to assist with the implementation and management of those projects.

Due to the limit of available funds, many organisations may miss out. This doesn’t have to mean the end of your project. Trident can help secure alternative funding arrangements which means you can get started on decarbonising your operations without delay.

Book a meeting with one of our experts to discuss the Public Sector Decarbonisation Scheme: Phase 3.

Please choose a suitable date and time slot opposite and we look forward to speaking with you soon.

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Please call our team on 0345 634 9500 or email us at info@tridentutilities.co.uk.