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Commercial Solar Finance UK · Independent
Grants by Vertical · Education

Solar grants and funding for schools & academies

Schools, academies and multi-academy trusts used to have the most generous capital-grant route in UK commercial solar. PSDS closed to new applications in November 2024, so schools now rely on the Department for Education's Condition Improvement Fund (CIF) where solar is part of a roof or fabric upgrade, reserves, leases and PPAs. PSDS closed to new applications in November 2024 and Phase 4 is its final phase. Trust-portfolio applications consistently outperform single-school applications.

Realistic expectations (checked 3 November 2026): PSDS has closed. Public-sector loans survive in Scotland, where Salix lists the zero-interest Scottish Public Sector Energy Efficiency Loan Scheme as open, and in Wales, where the Wales Funding Programme lends at a fixed 2.45%; we have not confirmed an open Salix solar loan for schools in England. Without capital, a PPA or an operating lease is the usual route.

PSDS status

Closed to new applications, Nov 2024

Funding routes for schools & academies

G01

PSDS Phase 4 (closed)

Public Sector Decarbonisation Scheme Phase 4 — closed to new applications in November 2024; solar was funded inside heat-led bundles. Schools and MATs could bid directly; bids were scored on the cost per tonne of CO₂ saved. Phase 4 is the final phase and no new round has been announced.

G02

Salix loans (Scotland and Wales only)

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

G03

Condition Improvement Fund (CIF)

DfE-administered fund for academy and sixth-form college estate condition. Solar PV qualifies where part of broader roof or fabric improvement (often integrated with re-roofing, insulation, or window replacement). Annual application window. Trust-level applications outperform single-school applications on scale efficiency.

G04

School Rebuilding Programme

DfE programme covering complete school rebuilds (selected sites). New buildings include solar PV as standard for projects coming through the programme — schools selected for full rebuild access solar without separate funding application.

G05

Local authority climate funds

Many councils operate dedicated school decarbonisation programmes alongside the national routes — particularly where the council retains education function. WYCA, GMCA, WMCA, and similar combined-authority programmes support school estate within their footprint.

G06

Innovate UK competitions (specialist)

For specific demonstration projects (battery integration, smart-grid services, agrivoltaics on school grounds), Innovate UK competitions offer 50–70% of qualifying R&D and demonstration costs. Niche but high-value where applicable.

Worked example: 1.2 MWp across 8 schools (West Yorkshire MAT)

  • Total capex: £960,000 across 8 secondary schools
  • Bundled application: solar PV + heat pumps on 4 sites + LED relighting + BMS upgrades
  • PSDS Phase 3 award: 78% (£748,800) of qualifying capex
  • Salix loan: 22% (£211,200) at zero interest, 9-year term
  • Trust-level cash outlay: £0 on grant component, £211k loan repaid through energy savings
  • Year-one combined electricity saving: £215,000 across 8 sites
  • Carbon savings: 480 tonnes CO₂ year one, 12,000 tonnes 25-year cumulative
  • CO₂ cost-per-tonne: £342 (modelled)

What PSDS bids taught MATs

In the PSDS rounds the strongest school bids were portfolio-level bundles: 5+ schools combined, solar paired with heat pumps and fabric upgrades, with detailed half-hourly demand modelling per site. Solar-only school applications rarely scored competitively because schools' grid-emissions counterfactual is already partly decarbonised, so bundles with heat measures scored better on the carbon cost test.

Schools & Academies grants FAQs

Did PSDS ever cover 100% of school solar capex? (It closed to new applications in November 2024.)
Rarely, and only as part of a wider project while the scheme was open. PSDS closed to new applications in November 2024 and Phase 4 is its final phase. It assessed bids on the cost of the carbon saved, which favoured heat pumps and fabric measures, so solar was funded inside bundled heat decarbonisation projects rather than on its own; the grant share depended on the phase and the bid.
Can academies use AIA or FYA on school solar?
Academies are exempt from corporation tax, which means AIA and FYA — both deductions against taxable profits — have no value to the academy entity itself. Academies fund solar through the Condition Improvement Fund, capital reserves, leases or PPAs; PSDS closed to new applications in November 2024 and England has no Salix loan. Where an academy has a trading subsidiary running commercial activities (lettings, catering), solar through that subsidiary can capture FYA but the structure needs careful tax planning.
Can schools access PPA arrangements?
Yes. With PSDS closed, a PPA is one of the main routes for schools that do not want to spend reserves. A PPA suits schools that want solar without spending reserves or taking on debt. PPA developers serving schools require strong covenant offtaker, typically the Department for Education backing or LA backing on the offtake.
How did multi-academy trusts apply for PSDS? (It closed to new applications in November 2024.)
MAT applications went through the Salix portal during open windows; PSDS closed to new applications in November 2024. PSDS closed to new applications in November 2024 and Phase 4 is its final phase. Applications required: (a) detailed energy audit per site, (b) costed bundled package with cost-per-tonne calculation, (c) procurement strategy, (d) 25-year carbon savings model, (e) match-funding plan for non-grant portion. Application typically 200–300 hours of internal/external time. Trust-level coordination matters: single-MAT application across multiple sites usually outperforms individual school applications on overhead-amortised metrics.
What about the new School Rebuilding Programme?
The School Rebuilding Programme (SRP) covers complete rebuilds of selected schools with poor estate condition. SRP-funded buildings include solar PV as standard. Schools selected for SRP don't need separate solar funding applications — the solar is part of the new-build specification. SRP selection is determined by DfE estate condition data, not by school application.

Complete guide to solar funding for schools after PSDS

Schools and academy trusts in England no longer have a national capital-grant route for solar: PSDS closed to new applications in November 2024, and in June 2025 the government said it would fund no PSDS projects beyond those already awarded. The routes now are the Condition Improvement Fund where solar is part of a roof or fabric project, reserves or trust capital, an operating lease and a PPA. Great British Energy has also funded solar on selected schools through government-run rounds; schools cannot apply to those directly.

What PSDS asked of schools (record)

PSDS applications went through the Salix portal while rounds were open. The record below is useful if a successor scheme is announced.

Who was eligible

State-funded schools in England: maintained schools (via the local authority), academies and trusts, free schools, studio schools and university technical colleges. Independent schools were not eligible.

What a bid needed

A DfE Unique Reference Number, 12 months of energy bills, floor areas, EPC data and a costed project specification. Stronger evidence of poor energy performance strengthened a bid.

Priority building criteria

While PSDS was open, Salix prioritised projects with high fossil-fuel dependency (gas heating replaced by heat pumps, with solar alongside), poor EPC ratings (D or below), high energy intensity and a clear pathway to net zero.

Salix loans for schools: status

We could not confirm an open Salix solar loan for English schools. Where a past PSDS grant only partly covered the cost, schools funded the rest from reserves or borrowing. The table shows typical project cost against annual energy saving, the two numbers any route is judged on.

School sizeTypical solar project costAnnual energy saving
Primary (250 pupils)£22,000–35,000£5,500–8,500
Primary (400 pupils)£30,000–50,000£7,000–12,000
Secondary (700 pupils)£55,000–90,000£13,000–22,000
Secondary (1,500 pupils)£90,000–150,000£22,000–37,000
MAT (10 schools)£300,000–800,000£70,000–190,000

Diocesan and multi-academy trust programmes

Church of England and Catholic Education Council

Many dioceses have established centralised solar programmes for their school estate, procuring systems in bulk to reduce per-school costs by 15–25%. If your school is in a diocese with a programme, joining it may be faster than procuring alone.

MAT-wide PSDS bids (record)

Large MATs (10+ schools) submitted consolidated PSDS applications covering the estate while windows were open. That cut administration and allowed portfolio procurement, which still lowers the cost per kWp under a lease or PPA.

Local authority solar programmes for maintained schools

Some local authorities run LA-wide solar programmes for their maintained school estate. In the PSDS years these blended PSDS grant with LA capital; now they are funded from LA capital, borrowing, leases or PPAs.

LA programme benefits for schools

Centrally negotiated contracts achieve 10–20% lower install costs than individual school procurement. The LA held the PSDS grant relationship while the scheme was open; the school only needed to cooperate with access and installation. All administration handled centrally.

PPA as an alternative where grants are not available

For schools without reserves to spend, a PPA provides solar with zero capital and no debt. The school pays per kWh of electricity generated at a rate 10–20% below grid tariff.

School PPA considerations

Ensure the developer handles planning permission, structural survey, and all LA consents. Academy trusts can sign PPAs directly; maintained schools need LA sign-off. Contract terms of 15–20 years should not exceed school building expected life.

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