FUNDING
Unlocking Capital for Decarbonisation
Delivering energy upgrades and decarbonisation across the school estate requires investment but securing those vital funds is often one of the biggest hurdles. At Warneford Consulting we specialise in helping schools access the right funding mix to make energy improvements a reality, without burdening school budgets or compromising children’s education.
We understand the funding landscape. From government grants and private finance to energy as a service models, we’ll guide you through all the options and help build a tailored funding strategy that works for your school or trust.
How Schools Fund Projects
Why Funding is Critical
It’s estimated that it would cost over £16 billion to decarbonise the UK school estate. Yet the annual capital funding available to schools is just a fraction of what’s needed. For many, the cost of even the simplest of projects can seem out of reach.
At the same time, schools are facing rising energy bills (over £1.7billion per year), a backlog of building condition issues, and the ambitious Department for Education target to cut emissions by 75% by 2037.
There’s a clear opportunity to align condition improvements, carbon reduction and energy security, but only if we’re able to unlock the funding to do it.
Our Role
Warneford Consulting supports schools and Multi-Academy Trusts (MATs) by:
- Identifying suitable funding options
- Building business cases with clear cost and carbon savings
- Writing and submitting grant applications
- Structuring Energy as a Service models
- Introducing trusted finance providers
- Supporting post award delivery and compliance
We act as your funding advisor, helping you to unlock opportunities to drive change.
Public Funding Options
Several key government funding schemes are able to support school energy upgrades:
- Public Sector Decarbonisation Scheme (PSDS) – For major heating and energy upgrades, focussing on removal of fossil fuel heating systems.
- Condition Improvement Fund (CIF) – For eligible academies, focused on urgent condition needs but now places more focus on energy efficient options.
- School Condition Allocation (SCA) – For larger trusts, pooled capital that can be strategically directed into projects that provide quick returns on investment.
- Heat Network Efficiency Scheme (HNES) – Provides grants to improve the efficiency of existing heat networks, including communal heating systems used in schools with spaces used for external organisations.
However, current grants alone won’t be able to bridge the funding gap. Around £1bn is projected to be available through public grants until 2030, some distance short of the estimated £16.3bn needed to fully decarbonise the estate.
Testimonial
“My legacy at this trust is one underwritten by the multiple Condition Improvement Fund awards that Tim has secured for us. Many of our school estates have been transformed as a direct result of our partnership”
David Harrison
COO
Energy as a Service
We often recommend “as a service” models where schools pay nothing upfront. Instead, a service provider installs and maintains the system, and the school repays through monthly fees covered by energy savings.
Common Energy as a Service models include:
- Lighting as a Service – Funding LED upgrades, fully maintained and paid for over a fixed period of time.
- Solar as a Service – Solar PV and Batteries installed with no capital cost, allowing schools to benefit from cheaper electricity. Power Purchase Agreements (PPAs) are also available, where the equipment is owned by a 3rd party, selling renewable energy produced back to the school at a reduced rate.
- Heating as a Service – An emerging model for funded heat pump systems, and hybrid systems. Schools benefit from a newly installed heating system, and pay per kWh of heat used.
These approaches work especially well for projects with clear savings and predictable performance.
Private Finance Options
With the recent changes to the Academies Trust Handbook, ethical and affordable finance options from the private sector have become a viable option for some technologies.
We have partners now available to support schools with:
- Loans
- Leases
- Community Energy Bonds
- Social Impact Investment
Community energy models in particular offer a compelling route, where local groups, finance, install and maintain equipment such as solar panels, with schools repaying via their energy bill. Community Energy Pathways is a great example of this, installing solar panels on around 84 schools since 2012, saving around 1,265 tonnes of carbon per year.
Blending Funding and Innovation
The future of school energy funding lies in blended solutions, combining public and private sources in ways that reduce risk and unlock scale.
This will include government backed Investment Funds that could finance widespread upgrades using private capital repaid through energy savings.
Developments are also being made on Property Linked Finance (PLF) where long terms loans are attached to buildings, not school budgets, potentially overcoming borrowing restrictions.
Selling verified carbon savings from retrofit schemes could also offer schools a new revenue stream to reinvest. This is now available for new and existing solar PV installations and can offer schools thousands of pounds in additional revenue per year from the sale of Carbon Credits.
While approaches are still developing, we’re committed to helping our clients stay ahead of the curve and pilot new models where appropriate.
Making the Case Internally
We know that CFOs, trustees and governors need a clear, credible case for investment. That’s why we include:
- Carbon and cost projections
- Lifecycle savings
- Payback analysis
- Risk assessments
- Funding comparisons
And if needed, we’ll even help support you in presenting the case to key stakeholders within your organisation.
Ready to Fund Your Decarbonisation Journey?
Every school is different, but none should be held bak by a lack of funding. Whether you’re just starting to think about possible funding route, or ready to go out to market, we can help. Get in touch here.