Air-source heat pumps under PSDS

Air-source heat pumps are the most common measure in PSDS school awards [DESNZ]. They clear the £510/tCO2e Phase 4 ceiling comfortably when paired with fabric works; standalone ASHP on a leaky building runs close to the ceiling and can breach it [Salix].

Oliver Wakefield-Smith
Founder · Digital Signet
Verified for Phase 4 (final phase) · refresh expected on any Salix or DESNZ policy change
Primary source · Salix Finance PSDS portal salixfinance.co.uk/PSDS last verified 22 Jun 2026

Realistic £/kW band

£1,200 to £2,300 per kW installed for a school retrofit, mid-band £1,700/kW. Includes wet-system upgrade (radiators, pipework), buffer vessel, controls, and electrical works.

kgCO2e and £/tCO2e

Replacing 620,000 kWh/yr of gas (typical 3,000m² primary) displaces ~85 tonnes CO2e/yr. Over 20 years that is 1,700 tonnes. A £700k ASHP scheme scores £412/tCO2e: under the £510 ceiling but with limited headroom, so fabric works are what pull it clear.

Does it need a wet-system upgrade?

Almost always yes. Schools sized for 70-80°C flow need to step down to 45-55°C for an ASHP. That means larger radiators (or fan-coil), possibly new pipework. Salix funds the wet-system upgrade as enabling works [DESNZ].

Phase 3/4 examples

ASHP-led schemes in the Phase 4 funded-project list [DESNZ] tend to cluster around £280 to £320/tCO2e where fabric was included; without fabric they push toward the £510 ceiling and are filtered out if they breach it.

See: fabric-first, GSHP, estimator, case awards, £510 ceiling.