PSDS Phase 5
PSDS Phase 5 Solar Funding — UK Public Sector
Public Sector Decarbonisation Scheme Phase 5 (open through 2027) funds solar PV alongside heat pump and electrification projects across UK schools, NHS, councils, leisure trusts, and universities.
£1.4bn
Phase 5 budget
Up to 100%
Grant intensity
2026–2027
Application window
Public sector
Eligibility
The Public Sector Decarbonisation Scheme (PSDS) is the UK's flagship public-sector low-carbon grant programme, administered by Salix on behalf of DESNZ. Phase 5 (open through 2027) provides capital grants for heat pump installation, solar PV, and energy efficiency across schools, NHS, councils, universities, and other public-sector estates.
Who Is Eligible
- Local authorities (councils, parish councils)
- NHS Trusts and Foundation Trusts
- Schools (state schools, academies, MATs, free schools)
- Universities and FE colleges
- Police, Fire, Ambulance services
- National museums and galleries
- Public-sector leisure trusts (subject to public-sector classification)
- Central government departments and arm's-length bodies
What PSDS Phase 5 Funds
- Heat pump replacement of fossil-fuel heating (primary funding focus)
- Solar PV when integrated with heat pump or electrification project
- Battery storage when integrated
- Building fabric improvements (insulation, glazing)
- Building management systems
- LED lighting upgrades
- Smart heating controls
Grant Intensity
- Typically 80–100% of capital cost where heat pump replaces fossil-fuel heating
- Solar PV typically funded at 50–75% as supporting infrastructure
- Project must demonstrate cost-effectiveness on £/tCO2 abated
- Maximum grant per project: defined per round
Application Process
- Pre-application — register interest with Salix.
- Project design — energy survey, SAP modelling, cost-effectiveness analysis.
- Stage 1 application — submit project proposal with technical specification.
- Stage 2 application — final commercial terms and project plan.
- Award and grant agreement — typically 4–8 weeks after Stage 2.
- Project delivery — typically must complete within 24 months of award.
- Post-installation reporting — verified performance data.
Real PSDS Project Examples (From Our Fleet)
- UK Multi-Academy Trust — 4 schools, 450kWp solar, PSDS funding 70%. Read case study.
- NHS Acute Trust — 380kWp, PSDS funding 75%. Read case study.
- Council leisure centre — 250kWp + air-source heat pump, PSDS funding 95%.
How We Support PSDS Applications
- Energy survey and SAP modelling
- Heat pump + solar integrated design
- Cost-effectiveness analysis (£/tCO2)
- Stage 1 + Stage 2 application authoring
- Project delivery to PSDS spec
- Post-installation monitoring and reporting
Common PSDS Pitfalls
- Solar-only applications without heat pump component — typically rejected. Solar must be integrated with electrification.
- Insufficient cost-effectiveness data — must demonstrate £/tCO2 ratio against PSDS thresholds.
- Site readiness gaps — DNO connection availability, planning consent, building structural survey all required at application.
- Tight delivery timelines — projects must complete within 24 months; late delivery risks grant clawback.
Frequently Asked Questions
What is PSDS Phase 5?
Public Sector Decarbonisation Scheme Phase 5 — UK government grant scheme funding heat pump replacement of fossil-fuel heating, solar PV, and energy efficiency upgrades across public-sector estates. £1.4bn budget; open through 2027.
Can solar-only projects qualify for PSDS?
Generally no — PSDS targets heat pump replacement of fossil-fuel heating as primary outcome. Solar qualifies as supporting infrastructure when integrated with electrification of heating. Standalone solar applications typically rejected.
How much PSDS grant can I claim?
Typically 80–100% of capital cost where heat pump replaces fossil-fuel heating. Solar PV typically 50–75% as supporting infrastructure. Cost-effectiveness on £/tCO2 abated drives grant allocation.
Who can apply for PSDS?
UK public-sector bodies — local authorities, NHS Trusts, schools, universities, police, fire, ambulance, national museums, public-sector leisure trusts, central government departments.
How long does PSDS application take?
Concept-to-award typically 4–6 months. Project delivery must complete within 24 months of grant award. Post-installation verification 2–3 years.
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