Public Sector Decarbonisation Scheme PSDS Solar PV for UK Schools Guide

Key Takeaways

• The Public Sector Decarbonisation Scheme (PSDS) provides capital funding for public sector bodies to install heat decarbonisation and energy efficiency measures.
• The initiative underpins the UK government objective of reducing emissions from public sector buildings by 75% by 2037 against a 2017 baseline.
• Administered by Salix Finance, the scheme funds rooftop solar arrays as indirect carbon reduction measures alongside heat pumps.
• Enabling measures such as electrical upgrades, smart metering, and battery energy storage can be included within grant proposals.
• Preparatory energy audits and engineering plans can be funded via the companion Public Sector Low Carbon Skills Fund.
• All commissioned school solar generation systems must be formally registered with the local Distribution Network Operator (DNO).

Grant Architecture and Policy Objectives

Maintained schools, academies, and multi-academy trusts across England face rising utility expenditure:

• Scheme Core Purpose: The Public Sector Decarbonisation Scheme provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures.
• Carbon Reduction Goal: The Public Sector Decarbonisation Scheme supports the aim of reducing emissions from public sector buildings by 75% by 2037, compared to a 2017 baseline.
• Delivery Body: The department’s delivery body, Salix Finance, manages the Public Sector Decarbonisation Scheme. Visit the Salix Finance site for more information about the scheme.
• Planning Support: The Public Sector Low Carbon Skills Fund provides grants for public sector bodies to put in place a heat decarbonisation plan, providing them with information they need to develop future applications to the Public Sector Decarbonisation Scheme.
• Geographic Scope: Both the Public Sector Decarbonisation Scheme and the Public Sector Low Carbon Skills Fund are open to public sector bodies in England and areas of reserved public services across the UK.

Multiannual Funding and Scale

The scheme has delivered significant public investment across multiple programmatic phases:

• Phase 3 Capital: Phase 3 of the Public Sector Decarbonisation Scheme will provide over £1.425 billion of grant funding over the financial years 2022 to 2023 and 2025 to 2026, through multiple application windows.
• Widespread Delivery: Hundreds of public buildings across England have installed energy-saving solar panels thanks to a pioneering Government decarbonisation scheme.
• Educational Institutions: Schools, hospitals, libraries, town halls and more can boast an array of solar PV panels helping to power their sites, thanks to the Public Sector Decarbonisation Scheme .
• Net Zero Alignment: The scheme, delivered by Salix, was launched in 2020 aimed at supporting the UK’s efforts to reach net zero by 2050.

Technical Categorisation: Indirect Carbon and Enabling Measures

When assembling grant applications, schools must correctly classify solar PV equipment:

• Indirect Carbon Categorisation: Measures that only save indirect carbon (typically electricity savings) such as Solar PV, LED lighting and energy efficient ventilation.
• Enabling Infrastructure: Measures that do not save carbon but enable the installation of measures that do. This can include measures such as electrical infrastructure upgrades, metering, energy storage, etc.
• Deploying on-site solar panels offsets daytime electricity demands driven by heat pumps, kitchen catering equipment, and classroom IT hardware.

Grid Notification and Compliance

Educational installations must adhere to statutory electrical utility standards:

• DNO Registration Duty: If you are planning to install an energy device in your home or small business, you are required to register your energy device with your Distribution Network Operator ( DNO ), the company that is responsible for bringing electricity to the property where you are installing the device.
• This connection filing enables the local distribution operator to confirm network hosting capacity and issue connection approvals.