Notice: Heat Pump Ready Programme Round 2: innovation funding competition Grant

About this grant

The Heat Pump Ready Programme (HPRP) Round 2 innovation funding competition, run by the Department for Energy Security and Net Zero, invites applications for applied research and development projects. It aims to develop and bring forward innovative technologies that overcome barriers to heat pump uptake. The competition targets four identified barriers: the capital cost of heat pump system hardware and components, the in-property changes required for installation, internal and external space requirements, and the time taken for a heat pump install from an accepted quote. Applicants must indicate which of these barriers their project addresses. Where an innovation affects energy performance, it must achieve a seasonal performance factor of at least 3.5 in a real-world home environment by the end of the project. Projects must be genuine R&D or innovation rather than already commercially deployed in the UK, and must involve private match funding and UK-based delivery and benefits. Supported activities are funded through grant requests between £200,000 and £2 million, subject to agreement to the grant terms, delivery to the programme timeline, an appropriate team set-up, and six-monthly stage gate reviews. Consortia may be formed with the help of a collaboration platform provided by the department. Full guidance, templates, declarations, and the grant funding agreement terms are published on the GOV.UK page.

Eligibility

Applicants must meet the eligibility requirements set out in the competition guidance. Requirements include that the application indicates which of the four heat pump uptake barriers the project addresses; that any innovation affecting energy performance achieves a seasonal performance factor of at least 3.5 in a real-world home environment by project end; that the project is genuine R&D or innovation and not already commercially deployed in the UK; that private match funding is provided; that delivery and benefits are UK-based; that the grant request falls between £200,000 and £2 million; that the applicant agrees to the grant terms and programme timeline; and that the team set-up is appropriate and the project accepts six-monthly stage gate reviews. Applications must be submitted through the portal, and only portal submissions are valid. Organisations not eligible for the innovation funding competition may instead complete the Heat Pump Innovation Journey Survey.

Key requirements

• ✓Innovation focus on heat pump technology, deployment, or market readiness
• ✓Alignment with UK net-zero heating transition goals
• ✓Eligible organisation types must be UK-based or operating in GB

Funder contact

The notice names a programme contact you can speak to before applying.

Relevant sectors

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.