UK Infrastructure Bank supports Public Sector Decarbonisation Scheme

As part of its mission to tackle net zero and support regional and local economic growth the UK Infrastructure Bank is supporting the Department for Energy Security and Net Zero’s Public Sector Decarbonisation Scheme (PSDS). The scheme provides grant funding to public sector bodies to fund low carbon heating, renewable energy and energy efficiency measures such as heat pumps, solar panels and insulation.

Applicants to the PSDS eligible for a loan from the UK Infrastructure Bank will now have the option of accessing the Bank's capital to borrow funds at preferential rates to support their decarbonisation projects.

Public Sector Decarbonisation Scheme

The Government’s Public Sector Decarbonisation Scheme aims to support the reduction of emissions from public sector buildings by 75% by 2037 as set out in the 2021 Net Zero and Heat and Buildings strategies.

The scheme is currently in its third phase during which it will provide £1.425 billion of grant funding over the financial years 2022-2023 to 2024-2025 across a number of application windows.

Phase 3c, the next application window, is expected to open to applications in autumn 2023

 

The Bank’s Local Authority offer

Public sector bodies or universities applying to Phase 3c of the PSDS eligible for a loan from the UK Infrastructure Bank will now also have the option of accessing the Bank's capital to borrow funds at preferential rates to support their decarbonisation projects.

  • The UK Infrastructure Bank offers loans at the relevant Gilts rate +60 basis points (20 basis points lower than the PWLB Certainty rate). 
  • The Bank can provide long-term funding and offer flexible repayment profiles to match a project’s needs. 
  • The minimum loan size for Local Authorities applying to the UK Infrastructure Bank is £5m.
  • When lending to universities, we will undertake a credit assessment to establish an appropriate rate on commercial terms. The indicative minimum loan size is £25m.
  • To talk to the Bank about your project and to find out more information please contact LAlending@ukib.org.uk