PSDS vs private PPA for school solar

For school rooftop solar, the choice is capital grant or PPA. The right answer depends on whether the school has capex headroom and on balance-sheet treatment.

Oliver Wakefield-Smith
Founder · Digital Signet
Verified for Phase 4 / Phase 5 watch · refresh expected on Phase 5 window opening
Primary source · Salix Finance PSDS portal salixfinance.co.uk/PSDS last verified 22 Jun 2026

Decision

Ownership and balance sheet

Grant-funded PV sits on the school's balance sheet as an asset. PPA assets sit on the PPA-party's balance sheet; the school records a contractual energy-purchase commitment.

Governance

PPA above ESFA thresholds needs DfE consent for academies. Grant-funded works need trust board ratification only.

20-year worked example

A 100kWp rooftop array generates ~85,000 kWh/yr. At 0.207 kgCO2e/kWh that is ~352 tonnes lifetime. Capital £115,000 (mid-band). £/tCO2e ~£327, marginal. Under a PPA at £0.10/kWh for 20 years the school pays roughly £170,000 across the contract life, retains no asset, transfers no capex. Net economics favour grant materially where the GCC passes.

GB Energy schools solar

For identified state schools, the GB Energy stream pre-empts both routes.