Through Phase 4 of the Public Sector Decarbonisation Scheme, the Department for Energy Security and Net Zero will make capital funding available from 2025/26 to 2027/28.

The portal will open for applications in mid-October and will close on 25 November 2024. Applications will then be assessed and all successful applications will be awarded funding by approximately the end of May 2025. Projects must be delivered by 31 March 2028.

The purpose of the decarbonisation scheme

The main aim of the decarbonising heat in the public sector scheme is to reduce direct carbon emissions in public sector buildings.

Each building covered by the application must be served by a fossil fuel heating plant at the end of its life (generally 10 years or older) and applications must propose low-carbon heating for all buildings.

Other requirements include a minimum contribution of 12% from the applicant towards total project costs and a whole building approach to incorporate building fabric improvements and energy efficiency measures as appropriate.

The latest phase will involve targeted funding driven by an application’s grant carbon cost, rather than a first-come first served basis. The carbon cost will be calculated by dividing the requested grant value by the direct carbon savings delivered by the measures that are funded by the grant only. Applications must have a grant carbon cost of no more than £510 per tonne of direct carbon saved over the lifetime of the measures (£510/tCO2e LT).

According to scheme delivery organisation Salix, applications with a lower grant carbon cost are more likely to receive funding.

It is also worth noting that the scheme’s definition of ‘public sector organisation’ has changed to align with up-to-date legislation. Organisations must meet the definition of a ‘public authority’ as defined by the Procurement Act 2023. This may impact the eligibility of higher education institutions.

Further details, along with application forms and guidance, are available from the Salix website.

Where we fit in.

Batchelor Air Conditioning & Refrigeration has extensive experience across the education and healthcare sectors and is ready to guide you through the decarbonisation measures available.

We recently completed the installation of a Daikin VRV (variable refrigerant volume) heat pump system, replacing an old oil boiler in what was originally a 19th-century Victorian school.

VRV (also known as VRF) can provide cooling and heating at the same time, making the technology an ideal choice for buildings where multiple rooms have different needs. It can also integrate into a building’s ventilation and wet heating systems and recover waste heat from cooling to use in heating. You can learn more about VRV/VRF systems and how they operate here.

For support and expert guidance on the decarbonisation of public sector buildings, contact Batchelor Air Conditioning & Refrigeration.

Use the contact form, call 01234 712 901 or email info@batchelor.co.uk.