PSDS Phase 4 — frequently asked questions
Are FE colleges eligible for PSDS Phase 4?
Yes — every FE corporation, sixth form college, specialist designated institution and land-based college has been eligible since the November 2022 ONS reclassification. Before then, FE was outside the public sector boundary for PSDS purposes.
What is the typical grant value?
Single-project grants typically £100,000-£800,000. Multi-site portfolio bids from group corporations have reached £8m+. The largest single FE PSDS Phase 4 award to date is around £8.5m for an integrated heat + PV programme.
How is PSDS Phase 4 scored?
Bids are scored on tCO2e avoided per pound of grant. Higher carbon savings per pound = higher ranking. Pure-PV bids typically score below the funding threshold; bundled bids combining PV with air-source heat pump or building fabric consistently score in the top quartile.
Why do bundled bids score higher?
Heat decarbonisation (replacing gas boilers with heat pumps) delivers larger absolute tCO2e reduction per pound than solar PV alone. Combining the two in one bid raises the combined score significantly. Adding building fabric improvements (insulation, glazing) lifts scoring further.
What is the application timeline?
15-22 weeks from submission to award typical. Phase 4 operates rolling rounds, so the exact timing depends on the round closing date relative to your submission.
Do we need to repay any of the grant?
No. PSDS Phase 4 is 100% capital grant. The corporation never repays. The corporation's obligations are limited to delivering the installed assets and reporting on actual carbon savings vs modelled.
Can we combine PSDS Phase 4 with Salix Decarbonisation Loan?
Yes — and many corporations do. PSDS funds the bundled headline project; Salix funds incremental measures (battery storage, additional PV, EV charging infrastructure).
What energy data do we need for the application?
12+ months of half-hourly electricity meter data per site, plus quarterly gas consumption data where heat decarbonisation is included. Auditable energy data is non-negotiable — bids without proper baseline data are filtered out at first scoring pass.
Can PSDS Phase 4 fund the project capital cost over multiple years?
No — PSDS Phase 4 funds capital that is committed and spent within the round's delivery window (typically 2-3 years). Multi-year delivery is acceptable; multi-year grant award is not.
Are there grant conditions on operating the assets?
Yes. Recipients commit to operating the funded assets for their design life (typically 25 years for PV, 20 years for heat pumps), to maintaining performance, and to reporting actual vs modelled carbon savings to Salix Finance annually.
Can sixth form colleges and SDIs apply?
Yes — all FE corporations, sixth form colleges, specialist designated institutions, and land-based colleges are eligible.
What does a winning PSDS Phase 4 bid look like?
Eight elements: integrated PV + heat + fabric design; auditable baseline; realistic operational projections; Skills England curriculum linkage; AoC Climate Action Plan integration; corporation board approval; procurement plan; risk register. We deliver all eight as part of bid preparation.