PSDS
Public Sector Decarbonisation Scheme
For qualifying schools, NHS, councils & public estates
PSDS (Public Sector Decarbonisation Scheme) is administered by Salix Finance on behalf of DESNZ. It funds heat decarbonisation projects on the public estate — schools, NHS trusts, councils, universities and other public-funded bodies. Phase 4 funding (allocated 2025-2028) covers heat pump installs, fabric upgrades, on-site solar PV, energy efficiency measures and accompanying enabling works.
Eligibility
Who qualifies for PSDS
- Public-sector body (school, MAT, NHS trust, council, university, etc.)
- Project decarbonises an existing public-estate building
- Heat pump or low-carbon heating measure is the primary action
- Energy-efficiency measures (fabric, controls) included where cost-effective
- Project meets DESNZ value-for-money tests
- Phased delivery within funding window
Not eligible
Who's excluded
- Privately-owned premises (use the commercial route + Capital Allowances instead)
- New-build projects
- Standalone solar PV without accompanying heat decarbonisation
- Replacement of recently-installed equipment
The process
How PSDS works, end to end
We handle the entire application — you never speak to the granting body. The grant is paid to AMP and deducted directly from your invoice.
1. Initial feasibility
We work with your estates team to scope the heat-loss situation, identify low-hanging fabric improvements and design a heat pump + solar (optional) package.
2. Salix expression of interest
You submit an Expression of Interest to Salix via the PSDS application portal. We provide all technical inputs.
3. Full application
If shortlisted, the full application goes in with detailed energy modelling, costs, payback and carbon savings.
4. Award and contracting
Successful awards are confirmed and contracts signed within the financial year window.
5. Procurement
Public-procurement rules (PCR 2015 / Procurement Act 2023) apply. AMP can quote via your existing framework (e.g. NEPO, YPO, Crown Commercial Service).
6. Install with minimal disruption
School-term scheduling, NHS clinical-area phasing, council-office out-of-hours — we structure works around operational realities.
7. Grant draw-down
Salix releases funds in tranches against verified completion milestones. We invoice the public body who passes through the grant claim.
Context
What you need to know
PSDS is the single largest funding source for heat decarbonisation in the UK public estate. The current Phase 4 window covers £1.17 billion across 2025-2028, with school MATs, NHS trusts and county councils as the largest beneficiaries to date.
For schools specifically, the Low Carbon Skills Fund (LCSF) accompanies PSDS by funding the technical specialist work (heat-loss surveys, BMS reviews, decarbonisation pathway plans) that precedes the capital application. AMP routinely supports schools through this LCSF feasibility stage before the main PSDS capital ask goes in.
For NHS trusts, PSDS sits alongside the NHS Net Zero target (Carbon Reduction Plan compliance for any new contract over £5m per PPN 06/21). Heat decarbonisation contributes directly to Scope 1 reduction in the NHS Carbon Footprint Plus.
Services this grant funds
What you can install with PSDS
PSDS FAQs
Can a private-sector business apply?
How much funding is available per project?
Does PSDS fund solar PV alone?
Our accreditations
Accredited, certified, and backed by independent standards
MCS Certified
NAPM47760
Heat pumps & solar
NICEIC Approved
D124458
Electrical contractor
Gas Safe Register
947841
Gas appliances
Heat Geek Trained
Heat pump design specialists
TrustMark
Government endorsed
Quality scheme
SafeContractor
Approved
H&S accredited
ISO 9001
2015
Quality management
ISO 14001
2015
Environmental management
ISO 45001
2018
OH&S management
PAS 2030
:2019
Retrofit standard
NAPIT
Member
Electrical inspection
F-Gas Certified
Air conditioning refrigerant
MCS Certified
NAPM47760
Heat pumps & solar
NICEIC Approved
D124458
Electrical contractor
Gas Safe Register
947841
Gas appliances
Heat Geek Trained
Heat pump design specialists
TrustMark
Government endorsed
Quality scheme
SafeContractor
Approved
H&S accredited
ISO 9001
2015
Quality management
ISO 14001
2015
Environmental management
ISO 45001
2018
OH&S management
PAS 2030
:2019
Retrofit standard
NAPIT
Member
Electrical inspection
F-Gas Certified
Air conditioning refrigerant
Every accreditation listed is independently verified. We carry the registration numbers — ask for any on request.
Get a free quote with PSDS grant applied
We handle the entire application and deduct up to 100% capital from your quote. Free survey, fixed-price install, MCS certified.