PSDS vs IETF: both UK capital grants are closed — how they differed and what replaces them
Two major UK capital grants funded commercial solar until recently — the Public Sector Decarbonisation Scheme (100% grant, public sector only, closed to new applications in November 2024) and the Industrial Energy Transformation Fund (30-50% match-funded, energy-intensive industry only, closed in July 2025 with no successor). This comparison is kept as a record of how they differed and of what each sector uses now.
Side-by-side comparison
| Feature | PSDS | IETF |
|---|---|---|
| Grant rate | Was 100% of qualifying capex — closed | Was 30-50% of qualifying capex (match-funded) — closed |
| Typical award size | £100k - £5m | £100k - £14m |
| Eligible bodies | Public sector in England — schools, NHS, councils, universities | Energy-intensive manufacturers, food processors, chemicals, paper, metals, ceramics |
| Administrator | Salix Finance (for DESNZ) | DESNZ direct |
| Geographic scope | England only (devolved equivalents elsewhere) | England, Wales, Northern Ireland (Scotland separate) |
| Application process | Pre-application EoI → full application → technical review | Pre-application EoI → full application → Five Case Model → independent technical assessor |
| Time from window opening to award | 4-8 months | 9-15 months |
| Funding round frequency | Phased — Phase 4 (Oct–Nov 2024) was the final round; closed | Phased — Phase 3's Spring 2024 window (closed 19 April 2024) was the last; DESNZ confirmed in July 2025 there will be no further phase and no successor fund |
| Solar-only applications? | Rare — prefers integrated heat pump + insulation + solar package | Rare — prefers solar + process electrification + waste heat recovery |
| Total programme value | £3+ billion (2021-2026) | £500m (2021-2028) |
Which one for your business? Real scenarios
State-maintained primary or secondary school
PSDS (closed November 2024) — was a 100% grant, eligible directly through Salix. Now: the Condition Improvement Fund for academies, a PPA, or the local authority capital programme.
NHS Foundation Trust hospital
PSDS (closed November 2024) — large combined heat pump + solar awards were typical while it ran. New schemes now run on NHS capital or PPAs.
Multi-academy trust
PSDS (closed November 2024), subject to academy-type eligibility while it ran. Academies now use the Condition Improvement Fund's annual rounds.
Local authority (council) building
PSDS (closed November 2024) — councils were eligible directly and most council solar delivered in 2024-2026 was PSDS-funded. New projects run on capital programmes or PPAs.
Food & drink manufacturer (private sector)
IETF (closed July 2025) — was the strongest sector for IETF awards. Now: the AIA plus the 50% first-year allowance, SEG, and the refrigeration-efficiency case on its own returns.
Heavy engineering / steel / metals fabricator
IETF (closed July 2025) — was eligible. Now: tax reliefs + SEG, with any process-electrification or waste-heat case funded on its own economics.
Pharmaceutical manufacturer
IETF (closed July 2025) — was eligible. Cleanroom load still makes the solar economics strong on tax relief alone.
Private hospital (Spire, Nuffield, BUPA)
Neither directly applies. Private healthcare typically uses AIA tax relief + SEG + finance.
Charity, third sector or independent school
Neither directly applies. Use the AIA + SEG + charitable trust funding routes.
Key deciding factors
- Are you a public sector body in England? → The PSDS was the route until November 2024; now CIF (academies), PPAs and capital programmes.
- Are you an energy-intensive manufacturer with Climate Change Levy main-rate liability? → The IETF would have applied; it closed in July 2025, so use the AIA + 50% first-year allowance + SEG.
- If neither, you're in the private commercial market — use tax reliefs + SEG + finance.
- Both the PSDS and the IETF strongly preferred integrated decarbonisation packages over solar-only.
- Both had long preparation timelines (12-18 months of pre-application work was typical).
Comparison FAQs
Could a project use both PSDS and IETF?
No — they targeted different sectors: PSDS the public sector, IETF energy-intensive private-sector industry, with mutually exclusive eligibility at organisational level. The PSDS closed to new applications in November 2024; the IETF closed in July 2025 with no successor fund, its last window having shut in April 2024.
Are devolved-nation equivalents available?
Yes for both. PSDS-equivalent: Scotland (Scottish Government Public Sector Pathway), Wales (Welsh Government Energy Service), Northern Ireland (Invest to Save). IETF-equivalent: Scotland ran the separate Scottish IETF — all three calls are closed and no reopening date has been published (gov.scot, checked September 2026).
How long did an IETF application take?
For the record — the fund is closed — from decision to apply through to grant award was typically 9-15 months. Pre-application preparation (project design, energy auditor, match funding arrangement) typically 6-12 months. Total: 18-24 months end-to-end for complex projects.
Is PSDS funded for solar alone?
Rarely. PSDS scoring favours integrated decarbonisation — typically heat pumps + insulation + LED + solar + BMS as a combined package. Solar-only applications historically underscore against integrated bids.
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