The fabric-first hierarchy for PSDS bids

Salix and DESNZ require evidence that fabric-first has been considered on heat-pump bids [DESNZ]. Done well, fabric is the lever that takes an above-ceiling ASHP scheme to a passing one.

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

The hierarchy

  1. Reduce demand (airtightness, insulation, glazing).
  2. Improve controls (BMS, zoning, setbacks).
  3. Decarbonise the residual heat demand (heat pump).
  4. Generate (solar PV) and store.

What counts

How it moves £/tCO2e

A 30% reduction in heat demand from fabric works typically cuts the heat-pump kW required by 30% and capital by ~25%. That moves a marginal £450-550/tCO2e bid comfortably clear of the £510 Phase 4 ceiling, and would have been essential to pass Phase 3's tighter £325 threshold.

Evidence Salix wants

Heat-loss model before and after fabric, narrative on options considered, justification for what is and is not in scope. Bids that skip the fabric-first narrative are typically queried at portal stage [Salix].