Public Sector Decarbonisation Scheme Grant Funding

Public Sector Decarbonisation Scheme


One of the greatest challenges today in meeting the UK’s 2050 Net Zero target is decarbonising the way buildings are heated.

In fact, most of the buildings in the public sector still rely on fossil fuel based heating and as these heating systems approach the end of their working lives it is an ideal opportunity to transition to low carbon heating.

£75 million of funding has just been released to the public sector to decarbonise their buildings.

Now is the time to start the process with us and see if you are eligible.

What is this funding?


Salix Finance, as of 07/04/21, is accepting grant submissions for up to 100% grant funding for those in the public sector to install low-carbon heating solutions i.e. heat pumps.

This scheme puts the public sector at the forefront of decarbonising buildings in the UK and in a leadership role to create exemplar projects in our communities that pave the way to help the UK meet its Carbon Budgets and Net Zero commitments.

Who can apply?


  • Central government departments and their arm’s length bodies (set out in the list of departments, agencies and public bodies as published on .GOV.UK). For central government departments where their roles are reserved (i.e. not devolved to Scottish or Welsh Governments or the Northern Ireland Executive), funding may be used for estates located anywhere within the UK
  • Emergency services
  • Institutions of further and higher education
  • Local authorities
  • Maintained schools within the state education system, including academies, Multi-Academy Trusts and free schools
  • Nursery schools maintained by a local authority
  • NHS Trusts and Foundation Trusts

Funding Criteria


The criteria for Phase 2 are carefully defined and every Applicant must study the criteria carefully and demonstrate and provide proof in their application that the project is tackling heat decarbonisation.

To be eligible for the scheme, two new key criteria must be met:

  • Applicants must be using a fossil-fuelled heating system; and
  • The heating system in question must be coming to the end of its useful life

If these criteria can be met, then an application can be built around applying for grant funding for a new low carbon heating solution. Applicants must include, as part of their application, at least one measure that decarbonises part or all, of the heating within a building.

For example, to apply for solar panels or energy-efficient LED lighting then you must submit to install a low carbon heating solution e.g. heat pump.

Working with FPG


The funding is aimed at taking ‘whole building’ approach to heat decarbonisation. This is where FPG can help. We take a holistic approach to our client’s needs and can assess the most appropriate set of technologies for your building.

We offer high quality low carbon heating solutions and assess the suitability of additional technologies for your grant application (solar / LED lighting) to help reduce your energy bills and carbon footprint.

Find out today if you are eligible to take advantage of this great new incentive to make public sector buildings more sustainable and energy-efficient.