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Grants by Vertical · NHS

Solar grants and funding for nhs trusts

NHS Trusts lost their main capital-grant route when PSDS closed to new applications in November 2024; the routes now are capital allocations, leases, PPAs and Great British Energy rounds run with NHS England. NHS estate operates 24/7 demand profiles that make solar economics exceptionally strong, and the cost-per-tonne metric works in NHS favour because hospital electricity demand is heavily concentrated in 24/7 plant load. Trust-level portfolios across acute, community, mental health and ambulance estate usually cost less per kWp than single-site projects.

Realistic expectations (checked 3 November 2026): PSDS closed to new applications in November 2024 and no further round is planned. In Wales, health boards without borrowing powers can use the interest-free Invest to Save route of the Wales Funding Programme (other bodies pay a fixed 2.45%), and Scottish NHS boards have Salix's Scottish schemes. For an English trust, an operating lease or a PPA avoids the capital outlay.

PSDS status

Closed to new applications, Nov 2024

Funding routes for nhs trusts

G01

PSDS Phase 4 (closed)

Closed. PSDS closed to new applications in November 2024, and in June 2025 the government said it would fund no projects beyond those already awarded. While it was open, bundled bids (solar plus heat pumps, LED and BMS) across several sites scored best.

G02

Net Zero NHS programme

Cross-cutting NHS England decarbonisation framework — every Trust has Board-level commitments under the framework. Net Zero NHS targets still shape trust estate plans; solar counts towards them whatever route funds it.

G03

Salix loans (Scotland and Wales only)

We could not confirm an open Salix solar loan for English trusts; Salix loan schemes for public bodies run in Scotland and Wales.

G04

NHS Property Services capital programmes

For Trusts using NHSPS-managed estate, NHSPS operates dedicated decarbonisation capital programmes including solar deployment on the wider primary care and community estate.

G05

Innovate UK NHS-specific competitions

Periodic Innovate UK calls for healthcare-specific energy innovation (e.g. resilient critical-load + battery storage at acute sites). 50–70% grant intensity on qualifying R&D components.

Past example: 2.4 MWp across 8 sites (PSDS Phase 3)

  • Total capex: £1.92m across acute hospital + 3 community hospitals + 2 ambulance stations + corporate HQ + ops centre
  • Bundled application: solar PV + air-source heat pumps on 3 community hospitals + LED relighting + BMS upgrades
  • PSDS Phase 3 award: 75% (£1.44m) of qualifying capex
  • Salix loan: 25% (£480k) at zero interest, 10-year term, repaid through demonstrated energy savings
  • Year-one combined electricity saving: £478,000 across 8 sites
  • Heat pump operations: additional ~£62,000/year fossil-fuel cost displacement
  • Carbon savings: 1,180 tonnes CO₂ year one; 25,500 tonnes 25-year cumulative
  • CO₂ cost-per-tonne: £294 (modelled)

Best application strategy

With PSDS closed, the strongest NHS trust approach is a multi-site programme funded from capital allocation, an operating lease or a PPA, with half-hourly demand data per site to size each array for self-consumption.

NHS Trusts grants FAQs

How much PSDS funding did NHS trusts get?
None for new projects: PSDS closed to new applications in November 2024 and Phase 4 is its final phase. While it was open, awards depended on the phase and the bid; trusts that combined solar with heat pumps and fabric efficiency did best, because bids were assessed on the cost of the carbon saved, and solar-only NHS applications rarely competed.
Can NHS Trusts use Capital Allowances on solar?
NHS Trusts are exempt from corporation tax, so AIA and FYA — both deductions against taxable profits — have no value to the Trust entity itself. NHS solar funding now comes through capital allocations, reserves, leases and PPAs; PSDS grants closed to new applications in November 2024. Charitable arms or trading subsidiaries operating from NHS estate can sometimes structure to capture allowances, but practical only on commercially-active functions like hospital catering or pharmacy.
Can English NHS trusts get a Salix solar loan?
We could not confirm one: Salix delivered PSDS grants in England, and PSDS closed to new applications in November 2024. Trusts that won PSDS grants funded the balance from capital allocations; PSDS closed to new applications in November 2024 and England has no Salix loan (Scotland and Wales do).
How do PPA arrangements work for NHS sites?
PPAs work for NHS sites where capital is constrained, which matters more now PSDS has closed. PPA developers serving NHS sites typically require Trust-level offtake commitment, often with NHS England support letter for credit substitution. Lifetime saving is lower than owning the array, but no trust capital is needed.
What about the Net Zero NHS framework — is solar required?
Net Zero NHS doesn't require solar specifically — it requires Trust-level decarbonisation pathways covering operational and supply-chain emissions. Solar PV is one of the most direct interventions for Scope 2 emissions reduction, and most Trusts include substantial solar deployment in their net-zero plans. The framework gives strategic alignment that supports a business case for capital, a lease or a PPA.

Solar grant funding options for NHS Trusts in 2025

NHS Trusts have access to a distinctive and relatively generous set of funding mechanisms for commercial solar and wider building decarbonisation. The NHS has its own net zero strategy (Greener NHS) with legally mandated targets, and this policy context means government funding has been more consistently available for NHS estates than many other public sector bodies.

Public Sector Decarbonisation Scheme (PSDS): status

PSDS paid capital grants for NHS estate decarbonisation from 2020. PSDS closed to new applications in November 2024, and in June 2025 the government said it would fund no projects beyond those already awarded. Great British Energy has paid for solar on selected NHS sites in England through rounds run with NHS England; the 2026/27 round closed to applications on 22 June 2026.

Salix loans: status for English trusts

We could not confirm an open Salix solar loan for English NHS trusts. Salix loan schemes for public bodies run in Scotland and Wales.

Greener NHS net zero programme

NHS England published its Net Zero strategy in 2020, committing the NHS to net zero direct emissions by 2040 and net zero across the full value chain by 2045. This creates a structural long-term demand for low-carbon energy in NHS estates. Trusts are expected to develop and implement NHS Net Zero Building Standards, which include targets for on-site renewable energy generation and heat decarbonisation.

NHS Net Zero Building Standard

Solar PV is a core component of the NHS Net Zero Building Standard. New NHS buildings are expected to achieve a minimum renewable energy fraction through on-site generation. Retrofit of existing buildings is funded through NHS capital programmes.

Carbon Trust and CBRE specialist NHS support

The Carbon Trust and specialist NHS property advisers (CBRE, Cushman & Wakefield NHS division) offer technical advisory services for NHS estates decarbonisation, including Decarbonisation Plans and project specifications.

PPA route for NHS sites

NHS PPA considerations

NHS Trusts can contract PPAs as revenue expenditure, which may be faster to approve than capital projects requiring NHSE capital review. A PPA needs no grant, avoids capital approval processes, and delivers immediate energy cost savings.

NHS PPA procurement

PPAs for NHS must comply with public procurement rules (Procurement Act 2023). Use framework agreements (NHS Shared Business Services, Crown Commercial Service) or run a compliant mini-competition to access qualified PPA developers.

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