How to Apply for Salix Finance Funding | FE Colleges 2026
Step-by-step 2026 guide for FE colleges applying for Salix Finance funding — eligibility, evidence pack, portal submission, and what Salix actually scores.
Salix Finance administers separate funding schemes for DESNZ, the Scottish and Welsh governments and the Scottish Funding Council — there is no single UK-wide Salix loan pot, and as of August 2026 no Salix loan or grant is open to applications in England. The open routes are Scotland’s Public Sector Energy Efficiency Loan Scheme and the Wales Funding Programme. This guide walks through the current process for each nation, and what English colleges should do while no window is open.
If you’ve already decided which route you need, jump to the relevant deep guide: Salix Decarbonisation Loan for colleges or PSDS Phase 4 for FE colleges. If you’re still choosing, see Salix vs PSDS Phase 4 — which route? first.
How to apply for Salix finance funding (2026 process)
- Check what is actually open. Salix’s live funding schemes list tags every scheme Open for applications, Announced, Delivering, Closed for applications, Closed, Paused for applications or Historic fund. In August 2026 only three are open: the Scottish Public Sector Energy Efficiency Loan Scheme, the Wales Funding Programme and the Scotland Recycling Fund. (The Wales Funding Programme’s Great British Energy solar top-up is tagged Announced, not open.)
- England — no Salix window is open. Phase 4 PSDS took applications from 9 October to 25 November 2024 and is in delivery to 31 March 2028; on 12 June 2025 government confirmed no further PSDS investment beyond awarded projects. The England Recycling Fund closed to new applicants in 2010 and its remaining funds closed on 31 March 2025. Register for Salix’s scheme-notification emails and keep the bid pack warm — our FE college Salix funding overview sets out what a compliant application contains.
- Scotland — three-step email application. Complete the Excel project compliance tool (plus the embedded business case above £100,000), then email it to Salix’s Scotland team with the required statement confirming you are authorised to apply, the organisation is authorised to borrow and repay by Direct Debit, and the project is “additional”. Terms: zero interest, up to a 12-year payback at no more than £305 per tonne of lifetime CO2, loans of up to 100% of eligible compliant project costs (per the February 2026 guidance notes), no maximum application limit (minimum £5,000). Projects must complete, and the loan be fully drawn, by the end of the financial year (31 March) in which the award is made.
- Wales — Wales Funding Programme (open, colleges named). Fixed 2.45% interest, up to 100% of project costs, criteria of £350/tCO2e with a 10-year payback, applied for by email to the Wales team; Salix’s 9 April 2026 update notes funding confirmations await the new Welsh Government. The tertiary-education Digarbon round 3 window (£10.2m for 2026/27) closed on 25 June 2026.
- Whatever the route, assemble the same evidence — 12 months of metered energy consumption data, before/after kWh and cost calculations, firm quotes and board authority to borrow — because each Salix compliance tool tests that the project repays itself from savings within the building’s remaining life.
Is the Salix Decarbonisation Loan open to English FE colleges in 2026? Salix lists no open loan or grant scheme for England as of August 2026, so English colleges cannot currently apply. Use the DfE capital streams, mayoral schemes and self-funded or PPA routes on our funding hub while watching Salix for a new England scheme.
How long does a Salix application take? Salix’s February 2026 guidance notes for the Scottish and Welsh loans say its technical team aims to complete assessments within three weeks; the Scottish notes target 20 working days from submission to decision, with loan documents to be signed and returned within 10 working days of receipt. Scottish loan projects must complete and draw down by the end of the financial year of award — plan backwards from that.
Step 1 — Confirm eligibility
FE corporations have been in scope for Salix funding since the November 2022 Office for National Statistics reclassification brought them into the central government accounting boundary. To apply you must be:
- A statutory FE corporation in England (the equivalents in Scotland, Wales, and Northern Ireland have separate devolved schemes)
- Borrowing within your corporation’s standing financial instructions (Salix Loan) or able to evidence match funding (PSDS)
- Targeting a project that displaces grid electricity, heat, or natural gas in a way Salix can score for kgCO2e/£
Sixth-form colleges that have not been ONS-reclassified are out of scope and need DfE capital routes instead.
Step 2 — Pull your evidence pack
Salix will not score a bid until you have the full evidence pack uploaded. Start gathering this in week 0 of your bid timeline — see the Salix bid timeline week-by-week for the full 14-week schedule.
The pack consists of:
- 12 months of half-hourly demand (HHD) data for every meter point in scope, sourced from the supplier or MOP
- Independent structural survey for every roof in scope (see structural survey pre-2000 FE estate)
- G99 DNO pre-application response confirming the proposed export capacity is grid-acceptable
- Firm installer quote (not indicative — Salix scores firm quotes higher)
- Independent generation model from PVSyst, Solcast or equivalent
- Carbon savings calculation worksheet using current published grid carbon factors
- Governor approval minute from the Finance & Resources Committee or full Board
- 25-year cashflow with discount rate stated
Step 3 — Build the carbon and value-for-money case
Salix scores every bid on kgCO2e per pound of capital. This is the metric the bid lives or dies on. For 2026 bids, use:
- Grid electricity carbon factor: 0.207 kgCO2e/kWh (current DESNZ published rate)
- Diminishing factor over project life: apply DESNZ published grid decarbonisation curve — do not assume a flat factor across 30 years
- Self-consumption ratio: modelled, not assumed at 100%. The portion of generation exported under SEG is worth less than self-consumed generation
- Lifetime savings: calculate over 30 years, not just year one. PSDS scores lifetime CO2e
A worked carbon savings methodology annex is the single most common Salix clarification request — include one even if not asked.
Step 4 — Get governance sign-off in advance
Salix will not release a loan offer (or PSDS grant offer) until the corporation has formally approved the borrowing or match funding. The governance pipeline typically runs:
- Director of Finance sign-off on the financial annex (draw schedule, repayment profile, balance sheet impact)
- Finance & Resources Committee approval if the project sits within F&R delegation
- Full Board approval if the project exceeds the corporation’s standing financial instructions threshold (typically £500k+)
Map this backwards from the F&R calendar at week 0 of your bid timeline. Missing a committee sitting can push the whole bid back a quarter.
Step 5 — Submit by the route your nation’s scheme specifies
Scotland’s SPSEELS and the Wales Funding Programme are both applied for by email to the relevant Salix nation team, using the scheme’s Excel compliance tool (and, in Scotland, the embedded business case above £100,000). There is no open England submission route as of August 2026 — PSDS Phase 4’s application window closed on 25 November 2024. Check the funding schemes list for the current status before preparing a submission.
Step 6 — Respond to clarifications quickly
Salix’s February 2026 guidance notes say its technical team aims to complete loan assessments within three weeks (Scotland targets 20 working days from submission to decision). Responses are one of:
- Loan offer or grant offer issued — sign and proceed to delivery
- Clarification request — most commonly on carbon methodology, draw schedule, or generation model assumptions
- Decline — rare for technically-clean bids; usually means the round is oversubscribed and lower-scoring bids didn’t make the funding line
Respond to clarifications within 5 working days where possible. The longer a bid sits in clarification, the more likely it is to be deprioritised behind newer submissions.
Step 7 — After the offer is signed
Once signed, the project moves from funding workstream to delivery workstream. The first 90 days post-offer typically cover:
- Final installer contract execution (via CCS RM6011 if not already done)
- Detailed design and permits
- Material procurement
- Site mobilisation
See year-one implementation checklist for FE solar for what month 1 through month 12 looks like post-offer.
Common application mistakes
In our experience supporting FE corporations through Salix applications, the same five mistakes recur:
| Mistake | Why it fails | Fix |
|---|---|---|
| Carbon factor stale (using 2015 vintage 0.412) | Inflates savings; Salix catches it | Use current 0.207 kgCO2e/kWh |
| Self-consumption assumed at 100% | Unrealistic for a college with summer holidays | Model self-consumption seasonally |
| Indicative quote, not firm | Salix scores firm quotes higher | Get the firm quote before bidding |
| No governor approval at submission | Bid sits in limbo | Sequence F&R sign-off ahead of submission |
| Generation model is installer’s own | Counts as marketing, not evidence | Use independent PVSyst/Solcast |
Where to go next
If you’re at the start of a Salix Loan bid, work through the Salix bid timeline week-by-week. If you’re targeting PSDS, work through the PSDS Phase 4 bid checklist. If Phase 5 is the more realistic window for your corporation, see PSDS Phase 5 prep for FE colleges.
Related guides
- Salix Decarbonisation Loan for colleges — full scheme overview
- PSDS Phase 4 for FE colleges — capital grant route
- Salix bid timeline week-by-week — 14-week delivery template
- PSDS Phase 4 bid checklist — 32-item evidence requirement
- Year-one implementation checklist for FE solar — what happens after offer sign