Decoding the Public Sector Decarbonisation Scheme

Is your public sector organisation curious about ways to decarbonise, but unsure of where to begin?


The Public Sector Decarbonisation Scheme (PSDS) was launched by the Department for Business, Energy and Industrial Strategy and offers £1 billion of grant funding to public sector bodies for capital energy efficiency and heat decarbonisation projects. The purpose of this programme is to improve the energy efficiency of buildings and install low carbon heating measures in line with the Government’s target of reaching Net Zero Carbon emissions by 2050.


Securing government funding can be difficult, and between the application process and undertaking the works themselves, proper guidance is key. At GEP Environmental, our team has helped many public sector bodies secure PSDS funding, we are supporting Salix with delivery of the PSDS scheme after being appointed to the Technical Due Diligence framework,  meaning we are uniquely placed to advise on the best ways to secure this valuable grant funding. We’ve shared our tips for securing funding for the PSDS below:


  • Prepare early: the application form and process are thorough, so early preparation is key to success. We recommend outlining feasibility options, and then refining the scope of those options ahead of the application. By considering project scope and feasibility, it’s far more likely that your organisation will choose a project that is deliverable, effectively decarbonises the building and meets the funding criteria.


  • Undertake a ‘whole-building’ approach: when considering decarbonisation projects, it’s essential to consider the entire building – from the layout and use to the heating systems and insulation. Considering the ‘whole-building’ optimises the configuration of the project - ensuring that each step the organisation takes to achieve decarbonisation is measured, and that all activity is balanced and goal-oriented. This kind of forward planning is also essential to meet the Carbon Cost Threshold specified by Salix.


  • Consider the technical expertise required to deliver the project: just as every building is unique, every decarbonisation project is unique – and as such, technical advisory and project management are key to delivering an effective decarbonisation plan. It’s essential to consider the technical expertise ahead of the project to ensure the project’s viability – in some cases when public sector bodies have not engaged technical advice and begun projects, they then realised that the projects were not deliverable – resulting in funding being returned.


  • Engage early with contractors and the supply chain: in the case of the PSDS, it’s essential to read the fine print – projects must be delivered within a certain time frame, so it’s key to engage with suppliers early and schedule the projects well within the allotted time (we recommend scheduling in a bit more time, if possible, to anticipate any project slippage). We also recommend considering procurement options at this stage – should your organisation prefer to award through a framework, it’s best to consider that process (and any specific procurement requirements) earlier rather than later to ensure that your preferred supplier can be appointed and deliver the work required within the allotted timescale.


Securing funding for the PSDS doesn’t need to be complicated, and our team of experts is standing by to answer questions you might have about the scheme.

For more information about the Public Sector Decarbonisation Scheme or to speak to one of our qualified environmental consultants contact our London and South East team who will put you in touch with the GEP Environmental team.


GEP Environmental are an appointed company featured on our Energy Efficiency Consultancy (N8C) framework.

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