Notice: Heat Pump Investment Accelerator Competition: round 2 (closed) Grant
In context
This call is open to startups, small and medium-sized businesses and large companies and 1 other, at prototype and pilot stage and scale-up and mature. Funding is a grant. Coverage is read from the notice itself: United Kingdom.
This competition provides grant funding for investments in the manufacture of heat pumps and strategically important heat pump components within the UK. It targets companies and manufacturers seeking to scale production capacity and supply chain development in the heating technology sector.
About this grant
The Heat Pump Investment Accelerator Competition (HPIAC) is a grant scheme run by the Department for Energy Security and Net Zero. It provides grant funding for major investments in manufacturing heat pumps and strategically important heat pump components in the UK. The competition is worth up to £90 million in total. This page covers round 2, which closed to applications on 5 August 2026. The scheme aims to bring forward investment in the UK heat pump manufacturing supply chain. The page does not describe the specific market failure in detail, but the stated purpose is to build domestic capacity for heat pump production and its key components. The scheme guidance sets out how the scheme works, the eligibility criteria, how to apply, how applications are assessed, how funding is allocated including contractual arrangements, and how successful projects must report progress. Application support materials published for round 2 include a case for assistance assessment template, strategic, economic and deliverability assessment templates (business case, financial model and project plan), and an application form. Clarification questions and answers were published on an ongoing basis through July 2026. Round 1 results are published separately as a list of successful projects.
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Eligibility
The competition is open to UK-registered businesses. This includes organisations set up for the purpose of delivering the project described in the application. Applicants may request grant funding of up to £30 million per project. The stated focus is major investments in heat pump manufacturing and strategically important heat pump components. Further eligibility detail is in the scheme guidance document, which the page does not reproduce.
How it's scored
The page states that the guidance explains how applications are assessed, but it does not give scoring criteria or weightings. The published assessment materials indicate that applications are reviewed against strategic, economic, and deliverability (business case, financial model and project plan) assessments, plus a case for assistance assessment. Panel composition is not stated.
Key requirements
- ✓Investment in heat pump manufacturing or strategically important heat pump component production
- ✓Operations and manufacturing capacity located in the UK
- ✓Contribution to UK heat pump supply chain development and net-zero transition goals
Frequently asked questions
- How much funding does Dept for Energy Security & Net Zero offer?
- Notice: Heat Pump Investment Accelerator Competition: round 2 (closed) offers $37.5M.
- Who can apply for Notice: Heat Pump Investment Accelerator Competition: round 2 (closed)?
- Eligibility covers organisations in GB; startup, sme, large-company, consortium. See the eligibility criteria above for the full conditions.
Relevant sectors
How this compares
- Compared with 17 similar grants (heating / cooling in United Kingdom) listed in the last 12 months.
- The same organisation listed 10 other similar grants here in the last 12 months.
Closest open grants
Figures are computed from notices listed on Raise Lens in the same sector and country over the last 12 months.
About this sector
Heating and cooling funding supports heat pumps, district heating, thermal networks, efficient cooling and the removal of fossil boilers. It arrives through national support schemes, local authority programmes and procurement for heat networks. Applicants typically need heat demand assessments, a connection plan and an operator for the system.
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