Schools invited to bid for energy-efficiency funding

The second round of the Public Sector Decarbonisation Scheme has opened, which allows public buildings such as schools and hospitals to receive energy efficiency upgrades, such as low carbon heating, such as heat pumps, and energy efficiency measures including double glazing and loft insulation.

This funding round of up to £635 million is the second part of an overall £1.425 billion due to be allocated through the Public Sector Decarbonisation Scheme between 2022 and 2025.

Up to £635 million of government funding will be made available to public sector organisations so they can install low carbon heating, such as heat pumps, and energy efficiency measures including double glazing and loft insulation.

The funding is available through the Public Sector Decarbonisation Scheme with organisations such as NHS Trusts, schools and local authorities able to apply for grants from September. Public sector bodies and taxpayers are expected to save an average of £650 million per year on energy bills over the next 15 years.

Installing low carbon heating systems, powered by cleaner, cheaper, renewable energy, will allow organisations to cut their use of costly fossil fuels where prices are being pushed up by pressures on global energy markets. It will support thousands of jobs, and also save taxpayers’ money as measures will ensure public buildings are cheaper to heat.

The Public Sector Decarbonisation Scheme supports the aim of reducing emissions from public sector buildings by 75%, compared to 2017 levels, by 2037 - with guidance on how to apply for funding published today.

This funding round of up to £635 million is the second part of an overall £1.425 billion due to be allocated through the Public Sector Decarbonisation Scheme between 2022 and 2025.

The Public Sector Decarbonisation Scheme is delivered on behalf of the government by Salix Finance and applications open in September.