Public Sector Decarbonisation Scheme (PSDS) & Salix for business solar
Not for private businessPublic-sector ONLY, administered by Salix — private companies cannot apply, and it mainly funds heat decarbonisation rather than solar.
Who qualifies
PUBLIC SECTOR bodies in England only (plus reserved functions in the devolved administrations): central government, local authorities, NHS trusts, schools, colleges, universities and other bodies meeting the 'public authority' definition under the Procurement Act 2023. Private companies are explicitly ineligible. Administered by Salix Finance on behalf of DESNZ.
How much it is worth
Phase 4 capital funding by financial year: £86m (2025/26), £427m (2026/27), £427m (2027/28). Grants require applicants to contribute at least 12% of total project costs. The scheme funds low-carbon heating (e.g. heat pumps, heat networks) and associated energy-efficiency measures — solar PV is generally supporting/enabling at best, not the core purpose.
Where it stands in 2026
Phase 4 open/awarded and delivering; project completion deadline 31 March 2028. The Phase 4 application portal opened 9 October 2024 and closed 25 November 2024, with awards from around May 2025. Earlier phases are winding down (Phase 3c running to 31 March 2026). Government confirmed in mid-2025 that no further PSDS funding beyond existing commitments will be made available.
What to do instead
- 1Not applicable to private businesses — do not attempt to apply; you are ineligible.
- 2Eligible public bodies apply through Salix Finance when an application window is open (the Phase 4 window has already closed).
- 3Public bodies can access the linked Low Carbon Skills Fund via Salix to develop heat-decarbonisation plans.
Key facts, checked against official sources
- Public sector ONLY — private companies cannot apply under any circumstances.
- Administered by Salix Finance for DESNZ; eligibility tied to 'public authority' under the Procurement Act 2023.
- Phase 4 funding: £86m (25/26), £427m (26/27), £427m (27/28); min 12% applicant contribution.
- Primarily funds low-carbon HEATING (heat pumps/heat networks), not solar PV.
- Phase 4 application window already closed (opened 9 Oct 2024, closed 25 Nov 2024); completion by 31 March 2028; no new funding beyond existing commitments.