Blog: How can public sector buildings benefit from the PSDS with Kensa

The Public Sector Decarbonisation Scheme (PSDS) is a fund dedicated to heat decarbonisation and capital energy efficiency projects in non-domestic public sector buildings across England, such as hospitals, schools, libraries, museums and the MOD estate. The funding is provided by BEIS and the scheme is delivered by Salix Finance.

The application window for Phase 3b closed on 31 October 2022. Phase 3c will follow in 12 months’ time. All public sector bodies should look to use the scheme to initiate decarbonisation projects in their buildings. The funding is specifically designed to help with capital costs of decarbonisation projects; therefore, all public sector bodies should take advantage of the scheme to initiate these projects in their buildings.

Ground source heat pumps (GSHPs) offer a solution for heat decarbonisation and the technology is eligible for the funding which could cover up to 88% of installation costs. GSHPs are the most efficient and effective way to decarbonise heating, the technology delivers heat with the lowest carbon emissions, lowest running costs and lowest lifecycle cost.

(The Kensa Q ground source heat pump – large capacity model for commercial buildings)

The Commercial team at Kensa has worked with many organisations across a variety of different projects – from leisure centres to schools to fire stations – and has completed and rolled out successful bids in all previous rounds of the funding stream.  Projects eligible for PSDS funding now include those such as the retrofitting of three Northumberland County Council Fire Stations, where electric heating was replaced with GSHPs with predicted savings in energy bills of nearly £200,000 over 20 years.

(Stamfordham School was fitted with low-carbon heat pumps as part of the Public Sector Decarbonisation Scheme with Kensa)

The PSDS window for application, award, to completion is 12-months. To ensure successful completion and project funding, I would advise to start planning as soon as you can. In our experiences those acting early have the very best outcomes with the Fund.

Where possible, start any pre-project processes now, such as planning, external efficiency measures and potential DNO upgrades. By having this ready ahead of your project being awarded funding, you have a huge advantage to ensuring the installation programme is delivered in line with the funding’s schedule.

We provide upfront support to clients to prepare for funding, which is key to any successful bid. For public sector customers wanting to install ground source heat pumps, we offer a free feasibility report that can be included within funding applications.

The feasibility reports can include all the information required, from a fabric first approach to reducing total heat losses, through to the full deep retrofit of the entire heating system and controls overhaul. With full carbon saving and cost analysis provided, we also issue full high-level programmes and risk analysis for the projects.

The application window for Phase 3b closed on 31 October 2022. For those just starting to review possible projects, we can help you with the preparation for Phase 3c, which is due to open in 2023. It is never too early to get in contact.

Book a one-to-one feasibility study

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In addition to the PSDS support Kensa is also able to provide an additional reduction in capital cost through the innovative Kensa Utilities funded ground array model. Further details on how this can enhance a funding offer and how Kensa are delivering a renewable alternative to the gas supply infrastructure can be found at



Author: Ian Goodchild, Non-Domestic Director of Sales, Kensa Contracting.

Ian joined Kensa in early 2021 to head up the commercial arm of Kensa Contracting, Ian and his team now help Kensa’s public and private sector clients, with their commercial decarbonisation projects.





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