A new £75m scheme which has massively different criteria to the first scheme

Phase 2 of the Public Sector Decarbonisation Scheme has been announced on 17th March 2020 with applications open for submission on 7th April. It’s a fund of £75million and the same public sector organisations can apply to this as could apply to the last scheme (except social housing is specifically excluded) But don’t think this is a repeat for the first scheme. This is very different.

What Projects Could Apply?

This scheme is very focused around encouraging the installation of low carbon heating solutions so for this fund to be suitable a site will need;

• To have gas, oil or and LPG boiler at the end of its life
• Funding to replace like for like (i.e. for gas to gas) as the scheme only pays for the uplift in costs from a like for like replacement to the low carbon option
• Not to have started yet but able to complete by March 2022.

Are other energy saving measures included?

Once you have a project that involves replacing an end of life system with a low carbon solution such as a heat pump then you can include other energy saving measures. The carbon saving from measures which save on the heating fuel (insulation, windows, draught proofing etc.) will have the carbon that they saved used in the compliance criteria. Energy saving measures which save electricity (LED, PV etc.) can be included but the carbon saving they generate is NOT used to the benefit of the carbon calculation.

What are the compliance calculations?

The project can only be a maximum of £5m per site (no minimum)
The project must cost no more than £325/tonne of carbon saved BUT this is quite a different calculation to round one and is not comparable as:

• The costs are the uplift from like for like boiler replace to a heat pump etc. only NOT the full cost
• The carbon savings are for the heating fuel (gas/oil etc.) only and NOT the electricity saving measures

I think I have a project which could benefit, what should I do?

There is now 3 weeks to get prepared and it is clear that only well developed and fully complete applications will be looked at so now is the time to make sure that you can:

• Prove your currently boiler is at end of life
• Have costs for replacing this for a heat pump or the like and an estimate for how much a like for like replacement would be
• Make sure you have looked at the whole building energy efficiency and include all insulation and similar measures
• Develop all the energy saving calculations, quotes, data sheets, risk registers and programmes for the project
• Get ready for the 7th and ensure you have the authorising official lined up as delays will cost!

This scheme suits those sites where they will needing to replace their boiler before march next year in any case and have funds available to do so. It will then pay for the additional costs of putting in a heat pump etc. instead of the boiler AND fully pay for improvements to the building fabric such as insulation, windows and draught proofing. If you are lucky then you might geta few elements of lighting into the scheme as well!

Inspired Efficiency is well placed to undertake the surveys and audits need to identify the energy saving measures, advise on the most appropriate funding routes and make applications for public sector organisations as well as managing the implementation project. It has recently been successful in obtaining funding for many schools through PSDS.

Please contact Matt Fulford for further information on matt@inspiredefficiency.co.uk – 07971 787363.