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Quick answer
Decarbonisation grants for the public sector estate. Grant funding for public sector bodies in England to install heat decarbonisation and energy efficiency measures, administered by Salix on behalf of DESNZ. It is aimed at Public sector bodies (NHS, schools, councils). Eligibility typically requires Eligible public sector bodies in England. Private SMEs can engage as suppliers, not applicants. Application: Competitive phases.
Funding amount
Varies
Region
England
Stage
Any stage
Provider
Salix Finance
Advisor view
This sits inside a fast-moving net zero policy stack. Strong applications show measured carbon impact, credible delivery partners and a project that would proceed but for the funding.
Frequently asked questions
- Who is Public Sector Decarbonisation Scheme really for?
- It works best for organisations that already meet the eligibility test on paper and have the operational maturity to deliver — not for businesses hoping the application will force them to formalise.
- What are the most common reasons applications are rejected?
- Weak evidence, eligibility misses, and applications that read as business as usual rather than the specific intent of the scheme. Most rejections are avoidable with earlier preparation.
- Can early-stage startups apply?
- Sometimes — but the strongest applicants usually have at least minimum trading history, a defined plan and the team to deliver. If you are pre-revenue with no plan, expect to be too early.
- How competitive is it?
- Demand routinely outstrips supply for the high-profile UK programmes. Treat any competitive call as a serious bid that needs four to six weeks of preparation, not a weekend.
- What should I prepare before I apply?
- A short written summary of what you are doing and why it qualifies, your latest accounts or forecasts, and any partner or evidence the scheme expects. Get adviser sign-off before submission.
- What happens after a successful application?
- Expect monitoring, reporting and milestone evidence. Plan the reporting cadence and internal owner before the funding lands, not afterwards.
Who it's for
Public sector bodies (NHS, schools, councils).
Usually too early when
Advisor signal
You have no defined technical project, no carbon baseline, no delivery partners, or you cannot evidence additionality against business-as-usual.
Eligibility
Eligible public sector bodies in England. Private SMEs can engage as suppliers, not applicants.
Evidence you'll need
Project plans, carbon and cost savings data.
Application timeline
Competitive phases.
Common reasons applications fail
Out-of-scope applicant; weak savings case.
What improves your odds
A measured carbon baseline, named delivery and engineering partners, planning consents in train, and a clear additionality case.
Typical successful applicant
A developer, public body, manufacturer or industrial operator with a defined decarbonisation project and finance lined up for the unfunded portion.
Common misconceptions
Headline pots are rarely a single grant — they are programmes with windows, technical gates and co-funding expectations.
What happens next
Salix reviews and contracts successful bids.
What comes next
If awarded, expect quarterly reporting on carbon, cost and milestones. Build the reporting discipline before funding lands.
Funding context
Often combined with private finance, supplier discounts and other DESNZ or local authority programmes.
Related routes
Industries
Objectives
Regions