The Heat Pump Ready Programme forms part of BEIS’ £1 billion Net Zero Innovation Portfolio, which aims to accelerate the commercialisation of innovative clean energy technologies and processes through the 2020s and 2030s. As a key solution for decarbonising homes, heat pumps will be critical for meeting the UK’s legally binding commitment to achieve net zero by 2050. Heat Pump Ready will support the development of innovative solutions across the heat pump sector.

Heat Pump Ready is aligned with other programmes, in addition to Ofgem’s Network Innovation Fund (NIC) and the Strategic Innovation Fund (SIF), delivered in partnership with Innovate UK.

The Heat Pump Ready Programme is split into 3 separate delivery streams:

  • Stream 1: solutions for high-density heat pump deployment. Up to £30 million of Small Business Research Initiative (SBRI) funding from spring 2022
  • Stream 2: developing tools and technology. Up to £25 million of grant funding for projects to overcome barriers to heat pump deployment, beginning spring 2022
  • Stream 3: trial support and learning. Up to £5 million contract from spring 2022

This page is about stream 2: click here for details about stream 1.

Stream 2, developing tools and technology, will support the development of tools, technology and processes to overcome specific barriers to domestic heat pump deployment.

A webinar on how to apply for stream 2 will be held at 2:30pm on 13th January 2022: click here to register for a place. Please note a recording of this event will not be available post-event. Copies of the slides will be made available shortly after the event.

BEIS’ aim is to work with industry to reduce the upfront costs of heat pumps by 25-50 per cent by 2025 and to parity with boilers by 2030, as well as making them as cheap to run as a gas boiler. The Heat Pump Ready Programme will support the delivery of these commitments, by developing innovative solutions to: reduce the upfront and running costs of heat pumps; improve the consumer journey; reduce the environmental impact; and ready the electricity network for the widescale deployment of heat pumps.

Stream 2 will support the development of tools, technology and processes to overcome specific barriers to domestic heat pump deployment in the UK. This stream will support solutions aiming to reduce the life time cost and increase the performance of domestic heat pumps, minimise home disruption whilst providing high quality installations, develop and trial financial models to support heat pump deployment, improve the heat pump consumer journey and provide a smart and flexible home energy system. The solutions supported in this Stream are expected to be at Technology Readiness Levels 5 to 7 at the start of any funded projects. Stream 2 – Tools & Technology will support development of these innovative tools and technology using grant funding.

The areas of focus are:

  • Reducing lifetime cost and increasing performance of domestic heat pumps (up to £8m indicative category budget) – this category supports innovation on the heat pump hardware
  • Minimising home disruption and reducing lifetime low carbon heating costs whilst providing high quality heat pump installation (up to £5m indicative category budget) – this category supports innovation on auxiliary equipment
  • Financial models to increase heat pump deployment (up to £6m indicative category budget) – This category supports innovation in business models (such as heat or comfort as a service) which provide a ‘bundle’ of heat products and services in return for a regular charge
  • Improving the consumer journey (up to £3m indicative category budget) –This category supports innovation for consumer facing tools and platforms
  • Smart and flexible home energy system (up to £3m indicative category budget)

For more information on the above categories, see the PDF guidance document here (pages 11 and 12).

The funding call is now open! Click the link below for details. Closing date 15th February 2022. Projects can have budgets of £100k to £2m; rapid projects 6-18 months duration, standard projects 12-30 months duration.

Projects must be delivered by individual UK-based private sector businesses (sole applicants) or by a consortium of UK-based project partners led by a UK-based private sector business (consortium applicants). Private sector businesses of any size are eligible for funding in this Programme.

Contact heatinnovation@beis.gov.uk for any related enquiries.