How to maximise your budget for Net Zero NHS estates and facilities

The National Health Service (NHS) is responsible for equivalent to 4% of England’s carbon footprint – and it has committed to reducing its impact on the environment.¹ By 2040, it intends to have reached net zero with regard to emissions it can control directly (the NHS Carbon Footprint), with a targeted 80% carbon reduction by 2032.

NHS estates and facilities have a key role to play in this. With over 60% of NHS Carbon Footprint emissions falling under this scope, mainly through energy usage, there is a huge amount of potential to be found in transforming NHS estates and facilities for a net zero future.²

This also means that carbon reduction must be considered when budget setting. With finances stretched amid economic uncertainty, investing in low carbon technologies and solutions can be difficult. But, with efficient generation and energy monitoring available to help you to cut waste and reduce your energy spend, lowering your carbon emissions could have unexpected benefits for your long term expenditure.

If you’re responsible for budgeting, you’ll need to demonstrate best value at every step of the journey to a net zero healthcare system. To help you to invest in the future of the NHS, there are several public and private financing schemes available. Read on to find out more about how we could support you in transforming NHS estates and facilities with flexible financing.

What Government funding is available for a Net Zero NHS?

With several Government schemes to choose from across the UK, it can be difficult to pinpoint which fund could provide the best opportunity for your NHS Trust or estate. And if you’re looking to maximise the savings you could get from your available budget, choosing the financing option that will deliver best value can be complicated.

If you choose to work with us on your new or upgraded energy assets, we can help you to identify funding that works for your unique requirements. Some examples of Government grants for NHS energy projects include:

• The Public Sector Decarbonisation Scheme (PSDS) funds heat decarbonisation and energy efficiency projects in England – Phase 3c is expected to open in autumn 2023
• The Scottish Green Public Sector Estate Decarbonisation Scheme funds heat decarbonisation and energy efficiency projects in Scotland, with a particular focus on Solar
• The Industrial Energy Transformation Fund (IETF) provides funding for projects benefiting sites or data centres in England, Wales and Northern Ireland under certain SIC codes
• Green Network Heat Fund: for heat access and capture, low-carbon power generation, and primary heat network distribution projects in England
• BHIVE: a dynamic purchasing system for new and expanding heat networks in England and Wales

If you intend to apply for Public Sector energy project funding, we can support you. Our Public Sector experts can help you to apply for any available financing, supporting you in managing your budget on your journey to net zero. We’re experts across a range of frameworks and funding opportunities – so, no matter the unique requirements of your NHS Trust or estate, we can support you in financing your future.

What Centrica Business Solutions funding is available for a Net Zero NHS?

If you’re looking for financing for your energy project, we can help you to secure a contract that works for you. We know that demonstrating best value is key to your financial management, and we can help you to ensure that you’re getting the best possible return on investment when accounting for integrated energy solutions in your upcoming budget.

Our flexible financing options cover a range of assets and scenarios, and can be tailored to meet the needs of your NHS Trust or organisation. With our 200-year history of energy sector leadership and a strong balance sheet to back up our investments, you’ll know that your project funding is in safe hands.

• Discount Energy Purchase (DEP) helps you to finance onsite energy generation assets, such as commercial solar panels or hydrogen-ready Combined Heat and Power (CHP). You’ll simply pay an agreed p/kWh unit rate for the electricity your system generates. We can also bundle in Operations & Maintenance (O&M), helping you to take care of your system across the 7- to 15-year length of your contract.
• Flexible Term Agreement (FTA) expands the flexibility of our DEP contract. This option allows you to move, replace or return a hydrogen-ready CHP unit after 3-5 years, subject to agreement. As such, even if you know your estate will be changing in the short term, you can still benefit from onsite energy generation.
• Optional Ownership Agreement (OOA) further extends the investment flexibility of our DEP option. You’ll be able to adjust your level of CAPEX investment in order to lower your agreed p/kWh payment rate, helping you to retain fine control of your budget over the lifetime of your asset.

Talk to our Public Sector experts about financing for a Net Zero NHS

It’s clear that now is the right time to take action on NHS decarbonisation. As you set your upcoming budget, we can help you to map out the future of your energy estate. Our team are experts in a range of integrated energy solutions, and have experience working across a range of Public Sector frameworks.

Whether you’re looking for Government support or to benefit from our flexible financing options, we can support you in agreeing a contract that works best for your NHS Trust or organisation. To learn more, fill out our simple form to tell us more about your project.

Sources

¹ National Health Service, Delivering a Net Zero NHS, March 2021.

² National Health Service, Estates ‘Net Zero’ Carbon Delivery Plan, August 2021.