The Public Sector Decarbonisation Scheme Overview | Pure Thermal

In 2019, the UK Government committed to reducing greenhouse emissions to net zero by 2050, by putting schemes in place to encourage businesses and individuals to follow suit. The Public Sector Decarbonisation Scheme (PSDS) was developed in 2020 to reduce the level of emissions from public sector buildings, whilst also supporting the economic recovery from the COVID outbreak. It provides grants for the public sector, to fund heat decarbonisation and energy efficiency methods.  Since the scheme launched, two successful phases have been completed, with phase 3 currently in progress. The scheme presently aims to reduce emissions from public sector buildings by 75% by 2037, contributing to a 22% reduction of all UK emissions.

The funding and the deliverance of the scheme is completed via Salix Finance, a non-departmental BEIS (Department for Business, Energy & Industrial Strategy) body that is solely owned by the Government. Salix offers 100% interest-free capital for the public sector, to help reduce emissions and energy costs. Through various funding programmes, public sector corporations will be able to install modern and renewable energy technologies, to replace outdated and traditional methods that only negatively impact the environment.

Phase Timeline

Phase 1 – The PSDS provided £1billion worth of grants over the financial years of 2020/2021 and 2021/2022, to support the UK’s recovery from COVID-19, as part of the Chancellor’s Plan for Jobs 2020. Its goal was to support 30,000 jobs in energy efficiency sectors to reduce carbon emissions and keep costs low.

Phase 2 – Over the financial period of 2021/2022, the scheme provided £75million of funding. Phase 2 had a greater focus on heat decarbonisation, intending to significantly reduce carbon emissions in the public sector. It particularly looked at buildings as a whole, and the way they are heated, as one of the greatest challenges in the public sector is that many buildings rely on fossil fuels for heating systems.

Phase 3 – Phase 3 intends to provide £1.425billion of grant funding over 2022/2023 to 2024/2025, through two application processes, known as phase 3a and 3b. Phase 3b applications will open in September 2022, allocating £635million of funding over 2023/2024 and 2024/2025 – online forms will be available on the Salix Finance website. The main aim of phase 3 is to provide grants to decarbonisation projects where heating systems are essentially exhausted and need immediate replacement.

The scheme delivered by Salix Finance gives applicants in the public sector the opportunity to receive funding towards their heat decarbonisation projects, where new and sustainable systems will be put in place. Organisations can submit separate applications for individual projects, or there is the ability to combine numerous projects into a single application for a single year or multi-year fund distribution.

Here at Pure Thermal, our three main values are pure efficiency, pure sustainability, and pure savings. Since 2015, we have been delivering high-quality, efficient, and sustainable heating and cooling systems, meeting the performance objectives of many decarbonisation projects. We provide next-generation systems, that combine low carbon emissions with high efficiencies, offering heating and cooling solutions to a range of industrial and commercial projects. Our natural heat pumps and chillers use only natural non-F-Gas refrigerants that are completely future-proof, delivering the highest levels of sustainability. If you have not yet found or installed sustainable methods of heating, we offer a fantastic selection.

If you require further information about our natural product range, please contact us on 020 3488 4618 or email, and our team will be more than happy to help.

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