Public-Sector Energy Efficiency Programme

Solar panels on the roof of a house

Public-Sector Energy Efficiency Programme

PEEP provides capital grant funding to support public-sector organisations to improve the energy efficiency of their buildings and invest in renewable energy technologies.

PEEP provides capital grant funding to support public-sector organisations to improve the energy efficiency of their buildings and invest in renewable energy technologies. PEEP is managed by Worcestershire County Council and funded by the European Regional Development Fund (ERDF).

The PEEP team at Worcestershire County Council can help you to:

  • apply for PEEP grant funding
  • optimise all of the grant-funding opportunities available to Worcestershire organisations

There are a number of loans and grants available to help the public-sector organisations to invest in energy efficiency and renewable energy projects, but understanding which scheme offers the best financial opportunity can be confusing!

The PEEP team can support you to understand all of the funding streams available and identify which schemes are suited to your project and offer the best financial opportunity. The PEEP team work closely with the Midlands Net Zero Hub and Salix to ensure Worcestershire organisations can maximise the funding available.

Contact the PEEP team

Eligibility requirements

To qualify for PEEP support:

  1. The nominated building(s) MUST be located in Worcestershire.
  2. Applicant organisations MUST meet the following ‘public-sector definition’: organisations MUST receive over 50% of their main funding from central or local government* (this does not include payment for work carried out by private enterprise for the public sector.)

Organisations who typically meet the public-sector definition (2) include:

  • Worcestershire County Council
  • District Councils
  • Town Councils
  • Parish Councils
  • Police Service
  • Fire Service
  • Ambulance Service
  • Worcester University
  • Schools and Colleges
  • NHS Trusts
  • Housing Associations
  • other Government Departments, Agencies and Bodies

How to determine whether your organisation meets the public-sector definition (2):

previous year’s receipts (excluding any EU monies) plus (+) income forecast for the following year (excluding any EU monies) equals (=) Funding total

If over 50% of the Funding total (net amount, after deductions) comes from central or local government sources, the beneficiary organisation will be considered ‘public-sector’ and by default its buildings. 

*Salix’s new ‘Public Sector Decarbonisation Scheme’ and ‘Public Sector Low Carbon Skills Fund’ also require applicant organisations to meet the public-sector definition (2).

Grant funding

Check whether your organisation can access this support by checking PEEP’s ‘eligibility requirements’

PEEP has a £1m pot of grant funding available for public-sector buildings. The grant funding is available to implement energy efficiency and renewable energy opportunities for public-sector organisations. 

Important information

  • grants available £2k to £200k
  • representing a maximum 40% of the total NET project value (VAT cannot be included)
  • intervention rate offered may fluctuate depending on the forecast energy savings e.g. projects with lower energy savings will be offered a reduced amount of grant funding (less than 40%) 
  • a state aid cap, reducing the intervention rate to a maximum of 30%, may apply
  • grant funding is claimed retrospectively
  • only capital costs are eligible for the scheme 
  • grant funded projects must be completed (spent, claimed, and monitored) by September 2022
  • any costs agreed or paid before the PEEP grant agreement is issued will not be eligible

Eligible expenditure

The following capital measures can be funded under PEEP. Stand-alone revenue costs are not eligible e.g. survey/feasibility costs, consultancy fees, accreditation fees, etc. 

Innovative measures eligible for PEEP grant funding Standard measures not eligible

Building energy management systems 
Air source heat pump
Ground source heat pump
Water source heat pump
District heating & cooling
Electric heating
Heat recovery
Combined heat & power (CHP)
Variable speed drives
Variable speed compressors
Innovative ventilation systems
Evaporative cooling
Ambient cooling 
Smart LED lighting systems
Solar PV
Solar thermal
Energy/battery storage
Thermal storage
Whole building/place retrofit*

*which can include a combination of standard and innovative measures.

Standard insulation

  • loft
  • cavity wall
  • solid wall
  • pipe
  • floor
  • draught proofing


  • standard double
  • standard triple


  • standard upgrade


  • standard LED without smart control system
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