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Commercial Solar Finance UK · Independent
NHS × PSDS

NHS Trust solar after PSDS: 2026 funding routes

Most NHS trust solar up to 2024 was funded through PSDS, usually as multi-site bids combining solar with heat pumps and fabric improvements. PSDS closed to new applications in November 2024, and in June 2025 the government said it would fund no projects beyond those already awarded. Net Zero NHS still requires trust decarbonisation plans, so trusts now fund solar from capital allocations, operating leases or PPAs, and 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.

Realistic expectations (checked 3 November 2026): PSDS will not reopen for trusts. An operating lease keeps the asset off the capital budget and a PPA removes the outlay entirely; Scottish NHS boards and Welsh health boards also have Salix loan routes that English trusts lack.

Headline answer

NHS trusts were the strongest sector for PSDS solar funding because of estate scale, continuous demand and Net Zero NHS alignment. PSDS closed to new applications in November 2024.

Why NHS trusts still suit solar after PSDS

NHS estates combine large roofs, continuous demand and Net Zero NHS commitments, so solar self-consumption is high. What changed is the money: PSDS bundled bids once secured large grant shares, but PSDS closed to new applications in November 2024. A trust now compares its own capital allocation against an operating lease or a PPA.

Past example: 8-site Trust portfolio (PSDS Phase 3)

Modelled on a Phase 3 award: 2.4 MWp of solar plus heat pumps and LED relighting across 8 sites, £1.92m in total, with a 75% PSDS grant and the balance from a zero-interest loan. That structure is not available for new projects: PSDS closed to new applications in November 2024, so the same portfolio today would be funded from capital allocation, a lease or a PPA.

NHS-specific application considerations

Three areas where NHS solar projects differ from other public-sector projects:

  • Critical care continuity — installations on acute hospital roofs need careful sequencing around clinical operations. Some sub-array deployment over weekends, holidays. Adds 6-10% to installation cost.
  • Foundation Trust vs DHSC route — Foundation Trusts have more capital flexibility. DHSC-managed Trusts work through central capital programmes.
  • Estate condition baselines — many NHS estate roofs are 30-40 years old; structural assessment often identifies remedial work alongside solar deployment. Sometimes funded from NHS estate capital.

Sector-specific FAQs

Which NHS bodies were eligible for PSDS?
NHS trusts and foundation trusts bid as public-sector bodies while PSDS was open; private contractors providing NHS services did not. PSDS closed to new applications in November 2024.
Can a trust use PSDS for a hospital solar project now?
No. PSDS closed to new applications in November 2024, and in June 2025 the government said it would fund no projects beyond those already awarded. A single-hospital project is now funded from capital allocation, a lease or a PPA.
How does Net Zero NHS affect solar funding now?
Net Zero NHS requires Trust-level decarbonisation plans aligned with 2040 (clinical) and 2045 (broader) targets. PSDS funded projects against those plans until it closed to new applications in November 2024; a clear plan now helps a trust make the case for capital, a lease or a PPA.
What grant share did PSDS give NHS solar?
It varied by phase and bid: bundled heat-and-solar bids took the largest shares and solar-only bids rarely won. PSDS closed to new applications in November 2024, so no new grant is available.
Can a trust combine a grant with private financing now?
There is no open PSDS grant to combine: PSDS closed to new applications in November 2024. Trusts now choose between owning the array (capital allocation) and a provider owning it (operating lease or PPA).

Related content

NHS Trusts sector page

Comprehensive NHS finance options across all structures.

NHS grants detailed page

Funding routes after PSDS, Net Zero NHS framework.

NHS Trust case study

Past PSDS-era example: 2.4 MWp across 8 sites.

Public Sector Decarbonisation Scheme: status for NHS trusts

PSDS, delivered by Salix Finance for the Department for Energy Security and Net Zero, paid capital grants for public-sector 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. We could not confirm an open Salix solar loan for English trusts. Trusts now fund solar from capital allocations, operating leases or PPAs, and 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.

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For the PSDS phase-by-phase record and 2026 status, including why the England “Salix loan” assumption fails, see the main scheme guide.

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