COMMERCIAL HEATING
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Hybrid heating systems: bridging the gap in the public sector
Chris Caton, product director – commercial, at Ideal Heating argues that by embracing a hybrid heating system approach, public sector bodies can bridge the gap between fossil fuel and decarbonised heating systems without breaking the bank
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he government estimates that direct emissions from public sector buildings account for around 2% of the UK’s total
emissions. The main source of emissions in these buildings is natural gas for heating purposes. Transitioning to decarbonised heating systems is therefore fundamentally important in reducing overall emissions in the public sector. Decarbonising heating has been primarily focussed on the replacement of natural gas boilers with heat pumps which are up to a third more efficient than gas boilers, so require less energy to run.
Public Sector Decarbonisation Scheme
The Public Sector Decarbonisation Scheme (PSDS) supports the aim of reducing emissions from public sector buildings by 75% by 2037, compared to a 2017 baseline. It is open to public sector bodies in England as well as those with reserved functions operating
in the devolved administrations across the UK. £2.5 billion in grant funding was allocated for Phases 1-3, covering 2020 – 2026, with Phase 2 seeing a stronger focus on heat decarbonisation than Phase 1. In September 2024, the new government confirmed the continuation of the PSDS and Phase 4 of the scheme opened for applications in October 2024 with a £1.17 billion budget to run from 2025-2028. Similar schemes operate in Wales and Scotland.
The Wales Funding Programme provides loan funding for energy efficiency and decarbonisation projects for public sector bodies registered in Wales. Scotland’s Public Sector Heat Decarbonisation Fund is closed at the time of writing, but it is hoped that the application process will open shortly for projects starting in 2025/26.
Unsuccessful applicants: the end of the decarbonised road?
The PSDS is a much needed fund for decarbonising the public sector, but even with the seemingly large sums available, many PSDS applicants will fail in their bid to get funding. Does this represent the end of the road for their decarbonised heating plans? Without funding, these public bodies are unlikely to be able to afford to implement a truly decarbonised
18 March 2025
heating solution based on renewables and heat pumps. Even if their existing gas powered heating systems are past their working lives and must be replaced, if budgets are limited, they are likely to be forced into replacing one fossil burning fuel system with another, albeit a modern more energy efficient one.
Why? Because the capital cost of heat pumps is
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