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Phase 2 Public Sector Decarbonisation Scheme


Salix Finance, on behalf of the Department for Business, Energy and Industrial Strategy BEIS, announced a second round of funding towards heat decarbonisation entitled Phase 2 Public Sector Decarbonisation Scheme (PSDS). The Government has allocated £75m towards heat decarbonisation in this round of funding, and this is available to eligible organisations as grants.

Applications open on Wednesday 7th April 2021 and there is a maximum of £5m per application but relevant organisations can submit several applications. The approved schemes must be delivered by 31st March 2022.   

Phase 2 PSDS is aimed at taking a ‘whole building’ approach to heat decarbonisation. One of the greatest challenges today in meeting the UK’s 2050 Net Zero target is decarbonising the way buildings are heated. Phase 2 PSDS has been launched to provide funding to those public sector organisations which are ready to take that step to a low carbon heating future. 

The BEIS (Department for Business, Energy and Industrial Strategy) require that applications be assessed by Salix in the order in which they are received on the Salix application portal.    

What happens when the scheme becomes oversubscribed? Salix will indicate on its website each morning by 11 a.m, the value of the applications received as they are collected. Salix will close the application portal when all available funds can be allocated and an appropriate reserve list will then be created. This ensures that the funds available will be fully allocated as some projects submitted for assessment decrease in value, some are non-compliant and some applications are withdrawn.   

Time is clearly of the essence and CPC’s Utilities Services framework provider, Dukefield Energy are well placed to assist you should you wish to make an application.  Please contact  them today for more information on 03453 020041 or [email protected]

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