Public Sector Decarbonisation Scheme (PSDS)

What is the Public Sector Decarbonisation Scheme?

The Public Sector Decarbonisation Scheme (PSDS) provides grants for public sector bodies to fund energy efficiency and heat decarbonisation measures with the aim of reducing emissions in public sector buildings such as schools, NHS hospitals and council buildings.


The Department for Business, Energy, and Industrial Strategy (BEIS) launched Phase 1 of the PSDS in autumn 2020 with a £1 billion grant fund to support the development of energy efficient and heat decarbonisation projects.


Phase 2 of the PSDS provided £75 million of grant funding for the financial year 2021 to 2022 and was launched to provide funding to those public sector organisations that were ready to take that step to a low carbon heating future. Phase 2 opened on 7 April 2021 and closed to applications on 13 April 2021.


Phase 3 of the Public Sector Decarbonisation Scheme has been launched by the Department of Energy Security and Net Zero, it will provide £1.425 billion of grant funding over the financial years 2022/2023 to 2024/2025. Phase 3a closed to new applications in November 2021. Phase 3b, closed applications on the 31st of October 2022 and is set to provide £635 million of funding over the 2023/2024 and 2024/2025 financial years. Phase 3c has been announced and is expected to open up to applications in Autumn 2023.


At RAM we have successfully supported many organisations with Salix-funded projects, from initial application through to project delivery.


Energy Efficiency

What is a Decarbonisation Plan (Low Carbon Skills Fund)?

The plan will include:


  • Determining the appropriate decarbonisation strategy
  • Defining the outline technical scope, cost versus net benefit, and potential programme for a range of project options, and how they all knit together: i.e., the decarbonisation plan
  • Advising on the detailed financial impact of the various financing options: e.g., self-financing, 3rd-party loans, government, or local authority grants
  • Supporting grant applications where applicable, where these are available to help offset the capital outlay in advance of the project
  • Determine next steps


Results are presented in a concise report, intended to be suitable for use by governing bodies or board members and estate management staff alike. The content at this stage always assumes no prior knowledge of low-carbon technologies, to ensure no reader will be left behind in the ensuing discussion. The report includes an executive summary and recommendations.




Public Sector Decarbonisation Scheme (PSDS)

How can we support you?

RAM provide full support and unrivalled experience with advising and delivering public sector projects, with an extensive track record.


We take time to understand our clients’ requirements and develop appropriate and cost-effective solutions to deliver projects. Our specialist knowledge and technical expertise combine to provide a first-class service. As a leading firm in the UK market, we have a national capability. We pride ourselves on delivering the very best service, with the utmost transparency, integrity, and dedication.


If you have won funding for the PSDS or need advice, we can help. Contact us to speak to an expert today.