The PSDS closed to new applications in November 2024 and no further phase has been announced. What public-sector bodies can use for solar PV instead, by nation.
The Public Sector Decarbonisation Scheme (PSDS) was the UK government's largest single capital fund for public-sector net zero infrastructure in England, delivered by Salix Finance for the Department for Energy Security and Net Zero. It ran in phases from 2020: Phase 1, Phase 2, Phase 3a to 3c, and Phase 4, whose application window opened in mid-October 2024 and closed to new applications in November 2024. Phase 4 was the final phase. As of September 2026 no further phase had been announced — the GOV.UK scheme collection, last updated in March 2025, lists Phases 1 to 4 only.
Two things about how it worked still matter, because so much solar marketing gets them wrong. First, it was heat-led: solar PV was fundable only in a building whose fossil-fuel heating was being replaced under the same bid, never as a standalone rooftop-PV grant. Second, it was competitive and oversubscribed — windows were committed within hours or days of opening — so even while it ran, "plan around PSDS" was poor advice for a solar-only project.
Any page, adviser or installer that tells a school, NHS trust or council in 2026 that it "can apply to PSDS" or that "PSDS funds up to 100%" is working from withdrawn guidance. This page is kept as a record of the scheme and, below, as a map of what public bodies can actually use for solar PV now.
| Status | Closed to new applications since November 2024 |
| Phases run | Phase 1 (2020/21–2021/22) · Phase 2 (2021/22) · Phase 3a, 3b, 3c (2021–2023) · Phase 4 (window mid-October to November 2024) |
| Future phase | None announced as of September 2026 |
| Scope while it ran | Heat-led — solar PV was fundable only alongside replacing fossil-fuel heating in the same bid |
| Delivery | Awarded Phase 4 projects deliver through to 2027/28 |
| Eligible nations | England only; Scotland, Wales and Northern Ireland run separate schemes |
There is nothing to apply for. The PSDS closed to new applications in November 2024 and no new window had opened as of September 2026. Do not budget for it, and do not let a consultant charge you to "get application-ready" for a round that does not exist.
What public bodies can use for solar PV instead:
1. A third-party-funded power purchase agreement (PPA). An investor funds and owns the array on your roof and sells you the electricity below grid price. No capital outlay, which is why it has become the default route for schools and trusts since PSDS closed. See our PPA guide.
2. Academies: the Condition Improvement Fund. CIF runs annual rounds for eligible academies and sixth-form colleges; energy-efficiency and building-fabric projects can qualify. Check the current round's guidance before scoping.
3. Scotland and Wales: Salix loan schemes. Scottish public bodies can use the Scottish Public Sector Energy Efficiency Loan Scheme at 0%; Welsh public bodies can use the Salix Wales loan at a low fixed rate (2.45% in September 2026). There is no equivalent Salix loan in England — see why the England Recycling Fund is closed.
4. Your own capital programme. Councils and trusts still fund solar from capital budgets and prudential borrowing on the strength of the bill savings; the Smart Export Guarantee then pays for exported surplus. Take your own financial advice — this site is an independent guide, not a lender or an installer.
Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Public Sector Decarbonisation Scheme (PSDS): closed to new bids since November 2024 typically combines well with:
The England Recycling Fund closed to new applicants in 2010 and all funds closed on 31 March 2025. Public-sector solar finance in England, S...
No new loans — closed to new applications since 2010; all funds closed 31 March 2025
The IETF closed in July 2025: no Phase 4, no successor fund, last window April 2024. What energy-intensive sites in England, Wales and NI us...
Closed — was 30-50% of project capex; no new awards since the Spring 2024 window
Smart Export Guarantee 2026 guide for UK businesses — best export tariffs, eligibility for 50kWp+ systems, how to register, and how to combi...
3p–15p per kWh exported (2026 fixed tariffs)
The Public Sector Decarbonisation Scheme (PSDS) was the UK government's largest single capital fund for public-sector net zero infrastructure in England, delivered by Salix Finance for the Department for Energy Security and Net Zero. It ran in phases from 2020: Phase 1, Phase 2, Phase 3a to 3c, and Phase 4, whose application window opened in mid-October 2024 and closed to new applications in November 2024. Phase 4 was the final phase. As of September 2026 no further phase had been announced — the GOV.UK scheme collection, last updated in March 2025, lists Phases 1 to 4 only.
As of May 2026, the scheme's funding status is: Phase 4 window closed November 2024; no further phase announced (checked September 2026). We re-check application windows monthly — if this is critical to your planning, request an eligibility check for the current programme status.
Typical award range: No new awards — closed to applications since November 2024. The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.
Salix Finance Ltd (on behalf of DESNZ). Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.
The scheme is closed. Any adviser, installer or web page presenting a 2026 PSDS window, a "Phase 5" or a "Round 5" is working from withdrawn guidance — there is none. Do not re-use old "up to 100%" figures. Grant shares varied by phase and bid, and none of it is available now. If your organisation holds a Phase 4 award, delivery deadlines run to 2027/28 and earlier phases saw grants clawed back for missed milestones — treat the programme dates as hard.
Tell us your business — we map every active 2026 grant to your sector, size and postcode, and tell you which ones stack.
Free 60-second eligibility check tells you whether Public Sector Decarbonisation Scheme (PSDS): closed to new bids since November 2024 applies — and which other schemes can stack.
Run free eligibility check Or call 0800 246 1132