Understanding Salix's Phase 2 Scotland’s Public Sector Heat Decarbonisation Fund

Open from 29 April to 27 May 2025, the scheme enables each application to secure up to £2.5 million in grant funding to support decarbonisation measures across public sector buildings. At Pick Everard, we are ready to support clients at every stage of the process—from funding applications through to project delivery.

Here are four key aspects to be aware of:

1. Who can apply: The fund is open to local authorities, arm’s-length external organisations, and universities—with the condition that projects are based in Scotland.
2. Funding value and contribution: Each application can receive up to £2.5 million, with applicants expected to provide a 20% financial contribution towards the total project cost.
3. Eligible project types: There are two primary types of projects:
   - Fabric first and clean heating system
   - Fabric first only
   - Projects must focus on either building fabric upgrades or the installation of clean heating systems. Measures that deliver indirect carbon savings, such as solar PV, must be paired with one of the core project types.
4. Project delivery timeline: Projects must be delivered within a tight timeframe, with all grant funding to be spent by 31 March 2026.

At Pick Everard, we’re experienced in helping public sector organisations make the most of decarbonisation funding opportunities.

If feasibility studies haven’t yet been carried out, it’s important to act fast—as they’re required to support your application.

We offer end-to-end support, from putting together strong submissions to delivering energy-efficient upgrades across your estate.

You can find more information on the latest funding round via Salix Finance’s announcement page.

Whether you're applying now or planning ahead, we're here to help—just get in touch with Andy Thompson.