If your diocese wants to improve building energy efficiency and cut carbon emissions, Salix Finance and the Public Sector Decarbonisation Scheme (PSDS) could be the perfect fit. However, with changing criteria and detailed requirements, it can be hard to know where to start.

At C3 Group, we help public sector clients, including dioceses, schools, and educational trusts, confidently navigate the PDSD. Let’s break it down together.

What is PSDS Funding?

The Public Sector Decarbonisation Scheme (PSDS) is a government-backed grant delivered by Salix Finance and funded by the Department for Energy Security and Net Zero. 

It helps public sector organisations cut carbon emissions by upgrading their building infrastructure, mainly through low-carbon heating systems like air or ground-source heat pumps. You can also add insulation, controls and metering, solar PV, or lighting upgrades, but only if they support the core heating project.

Phase 5 PSDS

Application criteria can change between rounds. That’s why at C3 Group, we monitor updates closely and adjust applications as soon as new guidance is released for both new and returning clients. If the next round follows the same approach as the last one (Phase 4 PSDS), the focus will remain on heat decarbonisation. That means additional measures like LED lighting or solar panels are only eligible if they support a heating upgrade. They can’t be the main feature of your application.

Does Your Diocese Qualify for PSDS Funding?

Let’s break it down based on the types of buildings your diocese might be managing.

Church of England Schools

You can apply if your diocese oversees state-funded schools – including maintained schools, academies, multi-academy trusts (MATs) and free schools. These institutions meet the PSDS definition of “public authorities” under the Procurement Act 2023, which defines eligible organisations as those that are:

• Wholly or mainly publicly funded,
• Not operating on a commercial basis,
• And subject to public authority oversight.

If your diocese oversees these schools, you can apply for PSDS funding to decarbonise their heating systems.

Diocesan Offices

Eligibility here depends on how the building is funded and what it’s used for. Offices used for central admin or education and publicly funded may qualify, especially if they meet the public authority criteria.

C3 Group can help assess your specific case – we’ve supported many organisations through similar applications. 

Churches and Faith Buildings

Most churches and parish buildings are registered charities, not public sector bodies. That usually makes them ineligible for PSDS grants, even if the community or a local school uses the building. 

To qualify, a building must be owned or controlled by a public authority. If you’re unsure of your building’s status, speak to us. We’ll help you make sense of the rules.

How to Get Started with PSDS Funding

If you think your diocese might be eligible, the next step is to start gathering information about the type and age of your current heating systems, building insulation levels, energy usage data, and any existing renewable technologies.

With that information, create a Heat Decarbonisation Plan that outlines carbon savings, cost estimates, and technical justifications. At C3 Group, we provide full support in developing your Heat Decarbonisation Plan, ensuring it aligns with Salix’s guidance. 

PSDS funding rounds are highly competitive. Early planning gives your application the best chance of success. Salix wants to see well-thought-out, evidence-based applications. That means showing the expected carbon savings from your upgrades and proving that the investment will deliver real environmental impact. The stronger your data, the better your chances of success.

Need Help with Your PSDS Application?

At C3 Group, we specialise in helping public sector organisations navigate the Salix PSDS funding process. We’ve helped schools, NHS trusts, and local councils secure Salix funding, and we understand the specific needs of dioceses. From assessing eligibility to submitting final documentation, we provide end-to-end support.

Our services include:

• Building assessments
• Energy modelling
• Full PSDS application support
• Project delivery coordination

We simplify the process so you can focus on our mission while we focus on securing the funding to cut carbon, reduce energy costs, and future-proof your estate. If you’re ready to get started, contact C3 Group today. We’re here to support you every step of the way.