Phase 4 Public Sector Decarbonisation Scheme

Tips for submitting a successful Public Sector Decarbonisation Scheme application

Applications for Phase 4 funding of the Public Sector Decarbonisation Scheme (PSDS) will close in just over two weeks, but it isn’t too late to submit applications.

PSDS has been set up to support the public sector in reducing emissions from its buildings by 75% by 2037, compared to a 2017 baseline.  For Phase 4 announced in September, it is committing £1bn over three years. This is working towards more public buildings such as schools and hospitals to switch to cleaner heating and cut their emissions.

Applications need to be in by 25th November, so there is time. But it is anticipated that there will be high volumes of applications, so it pays to be thinking about this now.  Here’s some pointers to help you navigate the application criteria:

How are applications categorised?

Applications are awarded by carbon score and prioritised by sector. This is an important change to previous schemes that have acted on a first-come, first-served basis. This change sets out to maximise the carbon reduction for the budget.

Consider combining sites and schemes

The good news is that sites and schemes can be bundled to maximise benefits and value for money. Using the example of window replacements, individual sites that may not meet the carbon payback requirements when considered alone could be included in a broader programme alongside sites that comfortably meet the threshold to maximise benefits.

Take a holistic view

It is worth looking holistically at what can be delivered together, for example programmes by geography or work type.  Using the example of window replacements again, if may be more appropriate to make a bid that replaces all of the windows in your estate (if you operate a large number of buildings) rather than bundling all sorts of different works within the same site (external, cavity, and loft insulations for example).

Getting some help

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.

Details and guidance notes for Phase 4 can also be found at https://www.salixfinance.co.uk/

For further inspiration, success stories of nine projects supported by PSDS funding have been published by the funding agency, Salix, which can be seen here.

Wolfson College at University of Oxford for example, which has beaten its net zero target by six years, decarbonising an inefficient, 1970s-built estate.

Birmingham Women’s and Children’s NHS Foundation Trust, which has not only reduced emissions with its decarbonisation programme, but it has also improved the experience for patients.

NACF and its member public sector frameworks covering the UK, would be happy to advise further on specific routes to market to help get the most from your funding applications. We can also point you in the direction for the best way to seek specialist advice on maximising the chances of securing funding.