Post-PSDS: live funding routes for schools right now

Phase 4 closed November 2024 [Salix], and the government has confirmed no further PSDS investment beyond currently-awarded projects [Salix]. These are the routes that are live for schools today.

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 10 Aug 2026

The live routes

Largest school-specific allocation, announced April 2026. State-school estate. Closest replacement for a PSDS heat-pump scheme by ticket size.
Annual DfE round. Decarbonisation eligible where it remedies a condition need. Academy-only.
Publicly-owned company funding rooftop PV directly. Pulls solar out of the PSDS bundle.
Residential-led but has public-estate touchpoints, especially for co-located residential blocks.
Not a fund. Procurement vehicle for ESCO-led performance contracts. Pair with capital grant or PPA.
Free regional advisory. Expanded role after LCSF closure. First port of call for pre-application help.

Closest to PSDS-equivalent for £400k–£3m

DfE Renewal & Retrofit is the closest single replacement by ticket size, but the decision route is different. PSDS scored on Grant Carbon Cost; R&R is allocated by DfE on condition need and educational impact. Schemes built for PSDS need to be re-narrated to that test.

What to do now PSDS has closed

  1. Do not wait for a Phase 5. The government has confirmed no further PSDS funding [Salix], so an existing pre-feasibility pack should be re-narrated to a live route rather than held for a PSDS window that is not coming.
  2. Run the scheme through the grant-size estimator to understand its £/tCO2e against the Phase 4 benchmark (£510), which several live schemes still use as a value-for-money reference.
  3. Apply to DfE R&R or CIF where eligible.
  4. See Will there be a Phase 5? for the government's stated position.