Unlocking Funding for Decarbonisation with the Low Carbon Skills Fund (LCSF)

Here is a run-down of all you need to know about the Low Carbon Skills Fund (LCSF).

Following the recent LinkedIn Live event with Head of Building Energy Services, Andrew Whitworth, and Business Development Lead, Lucy Stephenson, here is a run-down of all you need to know about the Low Carbon Skills Fund (LCSF).

How Can I Apply for the LCSF?

LCSF is a £16 million grant provided by the Department of Energy Security and Net Zero (DESNZ) to help public sector organisations in England develop heat decarbonisation plans using private sector expertise. The fund aims to drive capital projects that will decarbonise heating systems through initiatives like the Public Sector Decarbonisation Scheme (PSDS) and the Green Heat Network Fund.

View our LinkedIn Live to learn what you need to know about Low Carbon Skills Fund (LCSF).

Download the LCSF presentation slides here.

Who Is Eligible for LCSF?

Eligible organisations include NHS Trusts and Foundation Trusts, local authorities or Government bodies can apply on behalf of schools, central government departments such as:

  • The Ministry of Defence
  • The Ministry of Justice
  • Emergency Services
  • Colleges, Universities & State Schools in England
  • Nurseries maintained by local authorities

    Please note that private companies, charities, and social housing providers are not eligible for this particular fund, however, other funding options may be available.

Once the window for phase 5 closes, eligible organisations can consider applications for the PSDS, opening Autumn 2024, and plan for the next phase of the LCSF in 2025 which we recommend to begin planning at the earliest opportunity.

A key change from previous phases is that applications will be allocated randomly rather than on a first-come, first-served basis. Please note that there is also a new application form, and an end-of-life heating system requirement for project-specific activities. The heating system must be at the point of needing replacing, this is usually when it is 15 years old. Tenancy arrangements will also benefit from a heat decarbonisation plan.

Once you have applied, Salix will then check applications against the scheme scoring framework.

LCSF Funding Bands

Funding for the LCSF is divided into three value bands:

-34% <£100K
-38% £100K < £500K
-28% £500K < £1 million

The funding for the LCSF covers three types of activities:

1. Strategy Stage
Development of heat decarbonisation strategy desktop assessment and/or
building audit.

2. Feasibility Stage
Building audit specialist site surveys feasibility studies.

3. Design Stage
Investment grade audits, detailed design, and specialist site surveys.

Applicants can apply for individual activities or combine activities. Please note that only one application per organisation is permitted, though consortiums can apply together.

Secure LCSF funding with Veolia

Veolia can assist in the process by providing access to the leading technical specialists in the development of applications to the LCSF, allowing you to achieve your sustainability goals. We continually support you in taking a holistic approach to implementing Energy Conservation Measures across your organisation, considering the needs of different buildings and sites. The LCSF scheme is also a proof of concept for future grant applications, such as PSDS or Green Heat Network Fund.

LCSF pie chart stats

LCSF in Practice: Eastbourne Hospital

Veolia’s previous success securing LCSF and PSDS funding demonstrated at Eastbourne Hospital. The hospital serves over 470,000 patients annually, and requires an energy supply that meets modern patient care standards. This project was one of the first to take a whole building approach using wide-ranging energy upgrades to target carbon savings of 4129 tonnes and possible by securing LCSF funding.

LCSF Funded Eastbourne Hospital

How Can We Help?

Our friendly team are looking forward to hearing from you.