Phase 2 of £75m Decarbonisation Fund opens on 7 April

Multi-Academy Trusts (MATs), academies and schools planning to swap their old fossil-fuel heating system for an eco-friendly alternative can apply for a share of a £75m government decarbonisation fund.

The scheme is Phase 2 of the Public Sector Decarbonisation Scheme that was launched last year and allocated £977m (out of a £1bn pot) for carbon-saving energy schemes. Some 324 public sector organisations have benefited, with £72 million going to education.

The next tranche of £75m (effectively £50m in “new” money) is focused more narrowly on the decarbonisation of heat. Phase 2 opens for applications on 7 April 2021 and all projects must be completed by 31 March 2022.

What is the scheme for?

The scheme aims to tackle one of the greatest challenges to the UK’s 2050 Net Zero target – decarbonising the way buildings are heated. As fossil-fuel-based heating systems approach the end of their working lives the government sees an ideal opportunity to encourage transition to low-carbon heating.

Criteria:

Applicants must be using a fossil-fuelled heating system and
It must be coming to the end of its useful life.

If this is the case at your MAT, academy or school you can apply for a grant for a new low-carbon heating solution. Your application must include at least one measure that decarbonises part or all the heating within a building.

Who can apply?

Maintained schools within the state education system, including academies, MATs, free schools and nursery schools.

What’s on offer

The fund offers grants up to a maximum of £5m per application for projects that reduce non-traded emissions. There is no minimum sum.
There is a £325/tCO2eLT threshold.
Applicants can use their own funds to top up a project.
Multi-Academy Trusts can apply for a number of sites.
Schools, academies and MATs successful in Phase 1 can apply again.
Applicants funded under Phase 1 will have their original projects checked to make sure they are on target for their agreed completion date.
Funds will be allocated on the basis of first come, first served.

It is important to note that the grant will only fund the additional/marginal cost of implementing the low-carbon solution. Schools and academies will be responsible for the “like-for-like” cost of replacement.

What technologies are included?

You can request funding for any low-carbon technologies, from air source heat pumps to heat recovery, biomass to wind. Systems that run even partially on fossil fuels are excluded.

As the scheme has a “whole building” approach, technologies such as Solar PV or LED lighting can also be included if they support the heat project.

How to apply

An online form will be available from 7 April:

https://www.salixfinance.co.uk/Phase_2_PSDS

Salix Finance is the government body operating the scheme.

However, applicants will also have to provide comprehensive supporting documentation describing the project and what technologies will be used, as well as a delivery plan setting out a financial profile of how funding will be drawn down over the lifetime of a project.

Expert chartered building surveyors such as Surveyors to Education can assist in all these areas.