Government to begin £635m Public Sector Decarbonisation Scheme

Up to £635 million of government funding will be made available in September to NHS Trusts, schools and local authorities so they can install low carbon heating and energy efficiency measures.

The government has launched the latest phase of its Public Sector Decarbonisation Scheme, promising to provide up to £635m of funding to help schools, hospitals, leisure centres, museums and other public buildings improve their energy efficiency and install a range of clean technologies.

The latest tranche of funding forms part of a £2.5bn programme which aims to support the government’s goal of reducing emissions from public sector buildings by 75%, compared to 2017 levels – before 2037.

Public sector bodies and taxpayers are expected to save an average of £650 million per year on energy bills over the next 15 years.

Saving taxpayers millions

The government today also issued guidance on how public bodies can apply for the latest wave of funding, which is expected to deliver upgrades that can help taxpayers and public organisations save an average of £650m per year on energy bills over the next 15 years.

Upgrades are already under way through earlier rounds of the scheme, with 734 grants awarded to public sector organisations across England so far and Phase 1 alone supporting up to 30,000 jobs in the clean heating and energy efficiency sectors.

Business and Energy Minister Lord Callanan said the scheme was already delivering upgrades to “hundreds of public buildings across England, making them cheaper to run and saving taxpayers millions of pounds each year”.

“By helping even more public sector bodies ditch costly fossil fuels, we are taking an important step towards a more sustainable future while driving economic growth across the country and continuing to support tens of thousands of jobs,” he added.

Salix Finance

The latest wave of funding is to be delivered on behalf of the government by Salix Finance, which also provides financing packages to help public sector bodies undertake energy-saving projects.

Salix Finance Chief Executive, Annie Shepperd, urged public sector organisations across the country to move quickly to curb their energy use ahead of the significant increases in energy costs that are widely expected this winter.

“There is no time like the present to push forward with the decarbonisation agenda as our country must meet its ambitious targets to reduce our carbon footprint and reduce our consumption of very costly energy,” she said.

“Salix are proud to work delivering projects which transform public sector buildings. This vital work is driving down our carbon footprint and making these buildings better places for people to work in and for the public to use, as well as saving money for the taxpayer.”

The tools to decarbonise are more accessible than ever

Sustainable energy solutions and technologies become more accessible everyday thanks to innovations in technology and the wider awareness of climate issues. These help us set achievable net zero goals.

Some quick and easy carbon reduction measures you can take now can include educating your workforce to use energy smartly and more efficiently. Moreover, energy training and awareness programmes help us all find ways to use energy in a better way.

Simple steps to cut business energy costs help, too. The little things like powering down unused equipment, installing energy efficient light bulbs, heating and cooling rooms conservatively, and more all add up to big reductions in energy waste, carbon emissions, and costs.

Advanced distributed energy technologies such as solar and heat pumps are now more accessible and affordable. They also offer positive financial returns down the road. Flexible financing options and access to government grants such as the Salix Energy Efficiency Fund and the Industrial Energy Transformation Fund are available.

There are many government grants and subsidies that support businesses who adopt green initiatives. Businesses can be incentivised by the UK government to electrify their transportation.

Cloud technologies, AI, and big data are transforming the way businesses monitor and manage their own energy portfolio. Energy management software and hardware solutions give businesses live and granular-level information on their energy consumption, enabling them to  quickly make important decisions towards decarbonisation and energy cost savings.

Take your next step towards net zero

We can provide your business with the services, support, and expertise you need to decarbonise your operations so you can reach your commercial and sustainability goals.

Northern Gas and Power has a full team of professional assessors ready to help you analyse where, when, why, and how energy is used in your process, building, site, or organisation. We can also help you identify opportunities to reduce consumption, cost, emissions, and eliminate waste.

Discover more about our services on our website, or give us a call at +44 (0)3 300 300 800 to speak with us directly.