Scotland’s path to net zero is accelerating—and now, with Phase 2 of the Public Sector Heat Decarbonisation Fund officially open, public sector organisations across the country have a golden opportunity to take practical action on their carbon reduction goals.
From the Borders to the Highlands, this is a crucial window for local authorities, universities, colleges, and other public bodies to decarbonise their heating systems, cut emissions, and improve the long-term energy performance of their buildings.
At C3 Group, we partner with public sector organisations across the UK to provide end-to-end support—from strategic heat decarbonisation planning through to funding guidance and project delivery.
What is the fund for?
Delivered by Salix Finance on behalf of the Scottish Government, the Public Sector Heat Decarbonisation Fund provides capital grant funding to support the replacement of fossil fuel-based heating systems with low-carbon alternatives. This includes:
- Heat pumps
- Low-carbon heat networks
- Energy efficiency upgrades such as building fabric improvements and smart energy controls
The fund is designed to help organisations reduce their carbon footprint, improve energy use across public estates, and make meaningful progress toward Scotland’s national climate targets.
To secure funding, applicants must demonstrate how their proposed project aligns with a long-term decarbonisation plan, reduces emissions, and improves building performance.
Who can apply?
This funding round is open to a wide range of Scottish public sector organisations, including:
- Local authorities
- Colleges and universities
- Arm’s length external organisations (ALEOs)
- Other public institutions operating within Scotland
If you’re unsure about your eligibility or whether your project is in scope, C3 Group can help you interpret the funding criteria, assess feasibility, and shape a strong application.
Key dates to know
- Applications open: Monday, 29 April 2025 at 2 p.m.
- Applications close: Monday, 27 May 2025 at 2 p.m.
With just four weeks to submit once the portal opens, it’s vital to act quickly and get your project plan and funding application ready in advance.
How C3 Group can support you
C3 Group offers complete support for public sector organisations aiming to secure Salix funding and deliver compliant, impactful decarbonisation projects. Our expertise includes:
- Strategic carbon reduction planning
- Energy audits and feasibility studies
- Funding application support
- Technical specification and design
- Full project delivery and commissioning
We’ve supported schools, NHS Trusts, universities, and councils across the UK—ensuring their projects meet funder expectations and deliver long-term value. Whether you’re looking to retrofit a historic building or modernise an entire estate, our team knows how to navigate the process and ensure your bid is competitive.
We also work closely with installation partners like GW Power, allowing us to offer a joined-up, turnkey service from concept to completion—with a single point of contact throughout.
Why now?
Scotland’s public sector plays a central role in delivering on the nation’s climate commitments—and the funding available through this scheme won’t be around forever. By acting now, organisations can not only cut operational emissions and energy costs, but also lead by example in their communities.
We’re already working with public sector clients across Scotland to prepare applications for this round. Our aim is to ensure every project is application-ready before the deadline—technically robust, funder-aligned, and strategically sound.
Let’s take the next step
If you’re considering a heat decarbonisation project or want to make sure your application meets the criteria, now is the time to start.
Contact C3 Group today to arrange a consultation. We’ll walk you through your options, assess project scope, and help ensure you’re ready to submit a strong application before the deadline.
