Public Sector Decarbonisation Scheme

October 2020

The Public Sector Decarbonisation Scheme ("PSDS") gives central government and local authorities in England a major opportunity to decarbonise public sector non-domestic buildings by installing heat pumps.

The £1bn scheme run by Salix for BEIS will provide up to 100% of the cost of capital projects designed to decarbonise public buildings.

The purpose of the scheme is to help make eligible buildings more energy efficient and install low carbon heating systems like heat pumps, heating controls, glazing and insulation.

Eligible bodies can apply for up to 100% grant funding for projects that meet one or more of the four Category Definitions:

  1. technologies contributing to heat decarbonisation – like heat pumps and connection to low carbon heat networks
  2. technologies reducing overall energy demand – like insulation
  3. technologies enabling future decarbonisation projects – like metering or electrical infrastructure
  4. technologies replacing coal or oil fuelled heating – where low carbon heating would not be viable

Information on how to apply and the very tight timescales are shown on the Salix website.

Opportunity for heat pump installers?

The Public Sector Decarbonisation Scheme sounds like a great opportunity for heat pump installers and the £1bn Public Sector Decarbonisation Scheme has been welcomed by the Ground Source Heat Pump Association as it displays good intentions by government. However, the very tight timescale for implementing this heat decarbonisation scheme means that very few projects are likely to be installed within the limited timeline available.

Beware, however, that funding for the Public Sector Decarbonisation Scheme is limited to £1bn and that BEIS expects installations to be completed by 31 March 2022.

Remember that to provide effective and efficient heating, a heat pump must be installed by a contractor with experience in the design and installation of heat pump systems.


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