Public sector decarbonisation scheme · schools
The PSC scheme for schools, without the marketing copy.
The Public Sector Decarbonisation Scheme (PSDS) was the main capital grant route at school scale for heat-pump and fabric retrofit. It is closed to new applications, and the government has confirmed no further PSDS investment beyond currently-awarded projects. This site answers the eligibility question in 30 seconds, costs your scheme against the £510/tCO2e Phase 4 Grant Carbon Cost ceiling, and routes you to the live alt-funding programmes that have replaced it.
PSDS Phase 4 closed for applications November 2024 [Salix]. At the June 2025 Spending Review the government confirmed no further PSDS investment beyond currently-awarded projects [Salix]; awarded projects stay funded (Phase 3c delivery to 31 March 2026, Phase 4 to 31 March 2028) but no Phase 5 has been announced. The most recent binding rule was Phase 4's £510/tCO2e Grant Carbon Cost ceiling, with a minimum 12% applicant contribution for the like-for-like counterfactual. State-funded schools displacing gas, oil or LPG heating on owned estate were in scope; independent schools and PFI sites without landlord consent were not. Live alternatives for schools right now: DfE Renewal & Retrofit (£710m, April 2026 [DfE]), CIF for academies, GB Energy schools solar, Warm Homes Plan.
Answer all three to see the outcome. Three questions, roughly 30 seconds.
Three outcomes. One lane each.
State school, gas heating, owned estate. PSDS is closed to new applications, so run the £510/tCO2e check to understand your scheme, then take the pre-feasibility pack to a live route like DfE Renewal & Retrofit.
No further PSDS funding is coming. The DfE £710m R&R, CIF, GB Energy solar and Warm Homes Plan are all live. Pivot the bid pack to the right route now.
Independent, PFI without consent, or above the GCC ceiling. PPA, ESCO, Re:Fit and commercial heat-pump finance are the routes. We explain each plainly.
Where are you in the bid stage?
The PSDS pipeline runs pre-feasibility, feasibility, application, award, delivery, reporting. Each stage page is built for the workflow the bursar actually owns at that point. No fluff stages.
Which measures pass the £510/tCO2e ceiling?
Indicative model, school-scale assumptions, gas displacement, tested against the £510 Phase 4 ceiling. Full method on the VfM ceiling page. Measure mix reflects the published Phase 3 and Phase 4 funded-project lists [DESNZ].
| Measure | Lifetime kgCO2e | Capital £ | £ / tCO2e | vs £510 |
|---|---|---|---|---|
| Loft and cavity insulation | 850,000 | £140,000 | £165 | PASS |
| LED relamp (bundled) | 320,000 | £85,000 | £266 | PASS |
| Fabric-first package | 1,100,000 | £310,000 | £282 | PASS |
| Air-source heat pump (with fabric) | 1,500,000 | £480,000 | £320 | PASS |
| Air-source heat pump (no fabric) | 900,000 | £420,000 | £467 | PASS |
| Ground-source heat pump (small site) | 720,000 | £430,000 | £597 | FAIL |