07/11/2024
Insights
The Public Sector Decarbonisation Scheme (PSDS) Phase 4 opened for applications on 9 October 2024. This long-awaited phase of the scheme gives public sector organisations, including nurseries, schools, academies, and further education providers, the opportunity to apply for capital funding for the three financial years covering 2025/26 to 2027/28.
The application portal closes at 2pm on Monday 25 November 2024, so there’s no time to waste if you want to secure a grant to fund heat decarbonisation and energy efficiency measures in your school.
In this guide, we cover everything you need to know to apply for the scheme with confidence. We discuss the basics and provide insights into the application process, including the steps you can take to increase your chances of success.
What is the Public Sector Decarbonisation Scheme Phase 4?
The PSDS Stage 4 is the latest phase of a grant program from the Department for Energy Security and Net Zero (DESNZ) that awards funding to public sector organisations for decarbonisation projects and energy efficiency measures. The grant enables public sector buildings to reduce their emissions by switching to cleaner methods of heating.
Phase 4 of the grant is more targeted than previous phases. It focuses on projects that reduce emissions and provide the best value for money. Successful applicants must contribute at least 12% of the total project cost.
As well as updating HVAC systems or switching to low-carbon heat technology, applicants must consider the improvements they can make to the building fabric to reduce their energy demands. The successful applicants will receive funding by the end of May 2025 and their projects must be delivered by 31 March 2028.
Who is eligible for PSDS Stage 4?
A broad range of public sector organisations throughout England and those with functions in Scotland, Wales and Northern Ireland are eligible for PSDS funding. That includes everything from central government departments and local authorities to schools and hospitals. The following education providers are eligible:
Nursery schools maintained by the local authority
Schools in the state education system, including maintained schools, free schools, academies and multi-academy trusts (MATs).
Further education providers
An application will only be successful if the project would not take place without PSDS funding. The grant does not cover decarbonisation or energy efficiency measures required by law and you can not have already started the project. No projects involving the use of fossil fuels will be eligible and each building in the application must be served by a fossil fuel heating plant that’s at least 10 years old.
Applicants must own the building or have a lease arrangement that makes the public sector organisation responsible for its operation and maintenance. Crucially for some schools, buildings with Private Finance Initiative (PFI) arrangements are also eligible.
The importance of the grant carbon cost
In previous phases of the Public Sector Decarbonisation Scheme, grants were awarded on a first-come, first-served basis. Phase 4 is more targeted, with the grant carbon cost of a project one of the key factors in an application’s success.
The grant carbon cost is a relatively simple calculation you can perform by dividing the full value of the grant by the direct carbon savings it will deliver. Projects with a grant carbon cost of less than £510 per tonne are more likely to be successful.
Helping you access PSDS Phase 4 funding
If you want to alleviate the upfront cost of replacing your school’s outdated fossil fuel heating system, we can help you secure funding. At Eddisons Education, we have a proven track record of obtaining PSDS funding for schools UK-wide and delivering projects within restricted timescales. Find out more about the Public Sector Decarbonisation Scheme and get in touch for expert support with your funding application.
Get in touch with the Eddisons team
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