Energy Efficiency Grants for Schools and Trusts (Salix LCSF Phase 4)

What was the announcement?

On 28^th March 2023 the Department for Energy Security and Net Zero (via Salix Finance) announced that the public sector can now bid for Phase 4 of the Public Sector Low Carbon Skills Fund to develop heat decarbonisation plans for their estates.

The fund is £17million and follows two previous rounds.

What is the Public Sector Decarbonisation Scheme?

The PSDS was launched in October 2020 to help the public sector develop decarbonisation plans and delivery energy efficiency works. Now in its fourth iteration, it is expected that an announcement on Phase 4 PSDS will follow this autumn.

What is the Public Sector Low Carbon Skills Fund?

The Public Sector Low Carbon Skills Fund will provide grants to help all eligible public sector bodies to source specialist and expert advice to identify and develop energy efficiency and low carbon heat upgrade projects for non-domestic buildings.

The focus of the fund is to support organisations who are planning to replace aging heating systems to move these to low carbon alternatives.

How is this different to previous PSDS and LCSF and other Salix funds?

The funding is for funding advice to develop energy strategies and decarbonisation plans for heating systems.

It is not funding for capital works such as LED lighting and Solar PV Panels.

Unlike previous Salix funds such as SEEF the scheme is grant funding not a loan.

Previous PSDS/LCSF applicants can reapply subject to certain restrictions.

What are the funding options?

Phase 4 Public Sector Low Carbon Skills Fund includes three funding options:

1. Funding to develop or improve a heat decarbonisation plan incorporating any output outlined in the scheme criteria section.
2. Develop standalone detailed design(s) from pre-existing heat decarbonisation plan(s).
3. A combination of options one and two above, to develop or improve a heat decarbonisation plan(s) and develop a standalone detailed design(s) from a pre-existing heat decarbonisation plan(s).