businesssolarfinance

Public Sector Decarbonisation Scheme (PSDS) & Salix for business solar

Not for private business

Public-sector ONLY, administered by Salix — private companies cannot apply, and it mainly funds heat decarbonisation rather than solar.

Public Sector Decarbonisation Scheme (PSDS) & Salix for UK business solar
Be aware: PSDS is frequently mis-listed on 'commercial solar grant' pages, but a private business will never qualify — full stop. It is also a heat-decarbonisation scheme first (heat pumps/heat networks), so even eligible bodies use it primarily for heating, not solar PV. Including it here is purely to set the record straight for private buyers.

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 awarded and delivering (applications closed 25 November 2024); 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). No further phase has been announced.

What to do instead

  1. 1Not applicable to private businesses — do not attempt to apply; you are ineligible.
  2. 2Eligible public bodies apply through Salix Finance when an application window is open (the Phase 4 window has already closed).
  3. 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.

Official information ↗

Sources

Public Sector Decarbonisation Scheme (PSDS) & Salix: common questions

Can my business claim the Public Sector Decarbonisation Scheme (PSDS) & Salix?

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. PSDS is frequently mis-listed on 'commercial solar grant' pages, but a private business will never qualify — full stop. It is also a heat-decarbonisation scheme first (heat pumps/heat networks), so even eligible bodies use it primarily for heating, not solar PV. Including it here is purely to set the record straight for private buyers.

How much is the Public Sector Decarbonisation Scheme (PSDS) & Salix 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.

Is the Public Sector Decarbonisation Scheme (PSDS) still open?

Not applicable to private businesses — do not attempt to apply; you are ineligible. Eligible public bodies apply through Salix Finance when an application window is open (the Phase 4 window has already closed). Public bodies can access the linked Low Carbon Skills Fund via Salix to develop heat-decarbonisation plans.

Other funding your business can use

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