What is PSDS and who can apply?
PSDS stands for Public Sector Decarbonisation Scheme, which is a grant funding initiative from the Government to inject capital into low carbon schemes for public sector organisations, such as schools, hospitals and local councils. PSDS provides up to 100% grant funding for any low or zero carbon initiatives that meet the eligibility requirements, so if you’re a public sector organisation who wants to implement a scheme to lower your carbon footprint and save some money through solar, heat pumps, connection to a district heating scheme, lighting, BMS upgrades or other renewable technologies, PSDS can provide all the investment required.
Why did the Government develop PSDS?
The aim they have is twofold. One aspect is the decarbonisation of public sector buildings, and the other is to help with the Covid response from the Government, to invest money and generate more jobs within the green industry.
Can PSDS be paired with other funding or private finance?
It can. PSDS can provide up to 100% grant funding for projects that meet the eligibility criteria. There may be projects that will deliver additional carbon savings that would require the support of further investment, and in these cases you can look to take a blended approach between grant funding, private investment or third party finance to deliver the right project.
For PSDS phase 1 there was no cap to the funding – the biggest single grant that Salix, who administer the scheme, awarded was £78.2m, and the smallest was £5,300. This funding is to help everyone within the public sector at any level, whether you’re a school who wants to install LED lighting or a large NHS Trust who wants to completely de-steam their site.
What are the key factors to successfully gaining PSDS funding?
The Government are looking for a balance between carbon reduction and the amount of grant funding required. So, if you’ve got a scheme which will save you a few tonnes of carbon but it costs £50m, then the tonnes of carbon saved per pound invested won’t be substantial and that particular project won’t be as desirable to fund.
The timescales for submission are very short, and the level of interest leads to a large number of applications and an oversubscription for the funding available. Our advice would be to develop your project and complete as much detailed work as you can in advance of making an application. This is an opportunity to make a significant investment into the energy infrastructure on your site, putting you well on the path to net zero carbon.
How can Vital help with the funding application?
We have successfully gained funding for six clients in Phase 1 which delivered over £100m of investment into the public sector. Applications are required to be submitted by the organisation that’s eligible to receive PSDS funding. We can complete all the documentation on your behalf, including the application form and the supplementary details, such as programmes, risk registers, drawings, and you simply approve and submit the application online.
How can I benefit from Vital’s support with my PSDS application?
We have a proven track record of helping new and existing clients gain PSDS funding. Of the £1bn fund, we helped secure £100m for public sector organisations. We have the in-house capability to complete feasibility studies, surveys and data analysis required to develop a qualifying scheme. We have the expertise to optimise the solution to ensure the project has the best possible chance of securing grant funding, and self-deliver the construction, operation, and performance guarantee over the lifetime of the asset.