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Salix PSDS Phase 4 Announcement

Updated: 2nd October, 2024

Created: 25th September, 2024

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Robert Gould

Partner at Barker | Award-Winning Integrated Property Consultants

Robert Gould

Robert Gould

Partner at Barker | Award-Winning Integrated Property Consultants

Robert joined Barker in 2002 and is a Partner based in our Braintree office. A Fellow of the Royal Institution of Chartered Surveyors, he has over 20 years’ experience of all core building surveying services and provides strategic estates advice to key accounts in the education, commercial, ecclesiastical and public sectors.

An education specialist, he provides the following services: estates and energy strategy, asset management planning, project management and capital funding applications.

Robert works closely with clients to plan and implement energy efficiency and sustainability strategies to save money, reduce carbon emissions and meet ESG objectives.

As a RICS Certified Historic Buildings Professional he provides conservation consultancy for clients with listed and historic buildings.

Robert is an experienced APC Assessor and Chairman and is also an external examiner for Anglia Ruskin University

As a Partner Robert leads the Business Development and Marketing function at Barker, builds relationships with key sector bodies and helps steer the strategic growth of the company.

Email: rgould@barker-associates.co.uk

Tel: 01279 648057

On 23 September 2024, Salix announced Phase 4 of the Public Sector Decarbonisation Scheme.  The fund will focus primarily on the decarbonisation of heat. The application portal will open mid-October 2024

What is Phase 4 of the Public Sector Decarbonisation Scheme??

Phase 4 of the Public Sector Decarbonisation Scheme provides funding for public sector organisations looking to improve energy efficiency and reduce carbon emissions in their buildings.

The scheme offers grant funding to public sector organisations in England and those with reserved functions in devolved administrations to install energy-efficient measures and decarbonise heating systems. The Department for Energy Security and Net Zero will release funding for projects from 2025/26 to 2027/28, with exact allocations confirmed later.

Key Features

  • Eligibility: Open to public sector organisations in England or those with reserved functions in devolved administrations. Buildings must either be owned or leased, with responsibility for maintenance on the applicant. Buildings under Private Finance Initiative (PFI) agreements are also eligible.
  • Heating Systems: The existing heating system must be fossil-fuel-based and over 10 years old.
  • Contribution: Applicants must fund at least 12% of the total project cost, covering a like-for-like replacement of the fossil fuel system.
  • Additionality: Projects must be new and not legally required.
  • Whole-Building Approach: Applicants should consider energy efficiency and building fabric improvements to reduce heat and energy demand.
  • Low-Carbon Heating: All projects must include low-carbon heating systems; fossil fuel-reliant technologies are not eligible.

What are the timescales?

  • Applications open: mid-October (dates to be announced)
  • Applications Close: 25 November 2024
  • Funding Decisions: May 2025
  • Project Completion: 31 March 2028

Single year projects must be completed by 31 March 2026. Multi-year applications are for projects which will take more than one financial year to deliver and are required to complete by 31 March 2028.

What’s different from previous Phases?

  • Targeted Allocation: Funding is no longer awarded on a first-come, first-served basis. Instead, applications will be prioritised based on their “grant carbon cost” (grant value divided by carbon savings). Lower carbon costs have a higher chance of receiving funding.
  • Grant Carbon Cost: To qualify, projects must have a grant carbon cost of no more than £510 per tonne of carbon saved.
  • Updated Public Sector Definition: Aligns with the Procurement Act 2023, which may affect the eligibility of some higher education institutions.

What’s the same?

  • You can still bundle other technologies (such as insulation, BMS controls, Solar PV or LED lighting) as part of a “whole building” approach, where they are supporting the heat decarbonisation bit.
  • The fund is open to the whole public sector.
  • The additionality criteria are the same i.e., the project must not have already started. 

Can we bid for other energy saving measures? 

  • Yes. It is possible to append other technologies to the main heat decarbonisation project where it supports the delivery of the core scheme. For example, Solar PV to offset the additional electrical load from an air source heat pump.
  • However, the carbon savings from these technologies cannot be used to compensate for shortfalls in the carbon calculations of the core project as previously.

What do we do next?

Careful consideration will need to be given to identifying suitable projects.

  • Have you got a heating system at the end of its useful life?
  • Were you intending to replace the system in the next 1-3 years?
  • Do you have the funds to carry out a “like for like” replacement?
  • Do you have a developed feasibility, design or Heat Decarbonisation Plan?

If yes, you may be eligible to submit an application. Barker can assist with this process.

If you would like to discuss your project, please contact us.

Barker will be hosting a webinar on 9 October 1.30pm to discuss PSDS 4.

Register your interest here

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