Salix Loans for Public Sector Solar: 2026 Guide

What Salix is

Salix is the 0% interest loan scheme administered by Salix Finance Ltd, funded by the UK Department for Energy Security and Net Zero (DESNZ). It provides interest-free capital to UK public sector bodies for energy-efficiency, carbon-reduction and net-zero projects — including solar PV. The loan is repaid out of the energy savings the project generates, typically over 5 years, leaving the public sector body owning the asset at end of term with no out-of-pocket cost.

Who qualifies

• State-funded schools, academies and multi-academy trusts
• NHS trusts and arm's-length NHS bodies
• Universities and further-education colleges
• Local authorities (councils, combined authorities)
• Police, fire and other emergency services
• Central government departments and arm's-length bodies
• Some not-for-profit and charity bodies (sector-specific eligibility — check)

How the maths works

Salix requires that the projected annual energy savings cover the annual loan repayments. For most commercial solar PV projects on public buildings this works easily — solar PV typically saves more in year 1 than the loan repayment requires. The remaining surplus is kept by the public body.

Worked example: 75kWp solar on a primary school

The application process

1. Initial eligibility check — KMM confirms your organisation's eligibility and runs a preliminary energy savings estimate
2. Site survey — drone roof capture, structural assessment, energy modelling
3. Project specification — system size, generation estimate, savings projection, install costs
4. Salix application pack — typically 25-40 pages including project description, technical spec, savings calculations, contractor procurement evidence, payback maths
5. Salix assessment — usually 8-14 weeks for the assessment cycle
6. Approval letter — formal loan offer with terms
7. Install — KMM mobilises within 2-4 weeks of approval
8. Repayments commence — typically 3 months after commissioning

What KMM customers have funded via Salix

• 75kWp Newark primary school (2025)
• 615kWp 4-school MAT in Nottinghamshire (2025)
• Solar + LED retrofit at a Lincolnshire NHS community trust (2026)
• Estate-wide solar + EV charging programme at a Leicestershire college (2026)

PSDS — the complementary grant route

The Public Sector Decarbonisation Scheme (PSDS) is the partner grant route. Where Salix lends interest-free, PSDS provides outright grant funding for the same eligible projects. Phase 4 closed May 2025; Phase 5 is expected late 2026. Most KMM Salix projects are designed to be PSDS-ready so the customer can switch routes if PSDS reopens before the Salix application completes.

FAQs