Details of Phase 4 of the Public Sector Decarbonisation Scheme
Updated 23 September 2024
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In September 2024, the Department for Energy Security and Net Zero (DESNZ) confirmed that Phase 4 of the Public Sector Decarbonisation Scheme (PSDS) will open for applications in mid-October, supporting more public buildings such as schools and hospitals to switch to cleaner heating and cut their emissions, accelerating to net zero.
Phase 4 of the scheme will run from 2025/26 to 2027/28.
Budgets will be confirmed through the Spending Review.
While grants for Phases 1, 2 and 3 of the scheme have been awarded based on the order in which applications were submitted, grants for Phase 4 will be awarded through a targeted allocation process. This will ensure funding is targeted towards high-quality projects that contribute most to the scheme’s direct carbon saving goal. The sector soft caps policy will remain in place to ensure funding is distributed across health, education and other public sector organisations in proportion to the sector’s carbon emissions.
To support applicants to Phase 4 of PSDS funding, maps identifying where heat networks are expected to provide the lowest cost, low carbon heat to buildings have been made available. When considering applying for PSDS funding, these maps will enable applicants to make informed decisions about managing future heating costs and can be used to identify where heat networks exist and/or are highly likely to grow or be built.
The details and guidance notes for Phase 4 of the PSDS have now been published on https://www.salixfinance.co.uk/. Anyone who is interested in accessing more details about Phase 4 should also subscribe to Salix Finance’s newsletter via their website for timely updates.