Notice

HPRP Round 2: innovation funding competition - clarification questions (added 24 April 2026)

Updated 24 April 2026

Clarification questions (added 24 April 2026)

General questions

1. I’m having trouble accessing the application form, who should I contact?’

Please email heatinnovation@energysecurity.gov.uk in the first instance, setting out the issues which you are facing with the application form.

2. Can I speak to someone at DESNZ about my project ahead of submitting my application?

There is not the opportunity for applicants to meet with DESNZ ahead of submitting their application. Any questions you have in terms of eligibility or scope can be submitted to DESNZ via email (heatinnovation@energysecurity.gov.uk) ahead of the deadline of 16:00 on 14 May 2026.

3. Is there a collaboration platform available to help me find project partners?

The Department intends to facilitate collaboration between innovators to help companies find project partners. More details on a collaboration platform to facilitate this will follow in due course.

4. Will there be a webinar to support the competition launch?

The Department will be hosting an online event for guidance on how to apply for the Competition at 16:00 on 6th May 2026. To register to attend the Competition Guidance Event, please complete the following [MS Form to register for the event](https://forms.office.com/Pages/ResponsePage.aspx?id=BXCsy8EC60O0l-ZJLRst2Dyqwx3wF9lHuC8Ey9vbtFZUNVJXMjBaNlhEQUhZVUs4TVQzQUlRT1VNMy4u0, by 13:00 on 5th May 2026. The link to join the event will be issued after this deadline. Please note that the session will not be recorded but slides will be made available after the webinar.

5. How many grants are expected to be awarded under the competition?

As stated in Section 8 of the competition guidance up to £20m has been allocated to this Innovation Funding Competition with grants to be awarded between £200,000 to £2m. The number of projects receiving funding will be subject to the quality, quantity and value of funding applications received.

6. I am a consumer/homeowner, can I get a free heat pump installed through this programme?

Heat Pump Ready, as an innovation programme, does not provide any funding to consumers or homeowners to install heat pumps. For details of funding available to support the installation of heat pump in your home visit: Find energy grants for your home (Help to Heat) - GOV.UK

7. Where can I find out more about projects previously funded by the Heat Pump Ready Programme?

Details of the Heat Pump Ready programme, including previously funded projects can be found here: Heat Pump Ready Programme - GOV.UK.

Project scope and eligibility

8. My innovation overcomes more than 1 barrier, how should I account for this in the application form?

Applicants must focus solely on the primary single barrier which their innovation  overcomes throughout their response to the assessment criteria. The non-assessed question within the application form provides an opportunity to note any additional barriers overcome by the innovation. Further guidance is provided in Section 11 of the competition guidance.

9. I’m submitting a project against a barrier where software projects aren’t eligible, is it still possible to include the cost of software development which supports hardware innovation?

Eligible costs for the competition are set out in Annex 1 of the Competition Guidance. The definition of eligible costs includes the applicant’s own costs, eligible costs incurred by consortium members and eligible costs incurred by companies connected to any of these incurred in delivery of the agreed funded project. Software, where deemed as necessary to support the delivery of hardware innovation, may meet this criterion. Projects must justify all costs associated with the project as part of their responses to the assessment criteria.

10. I have an end-to-end software solution which goes from customer acquisition to quality assurance and servicing, would I be eligible to innovation funding across this solution if I applied under Barrier 4?

Section 3 of the competition guidance, including Table 1, details that projects must focus on the point of the consumer journey from a consumer accepting a quote to having the heat pump installed. Therefore, eligible innovative software projects must focus on activities taking place between these two events i.e. from quote acceptance to heat pump system fully installed in order to be in scope.

11. Why are alternative and direct heating electric heating technologies, e.g. storage heaters, electric boilers, infrared heating, panel heaters, electric radiators, heat batteries (unless the heat battery operates as part of a heat pump system) not eligible under the competition?

As set out in Government’s Warm Homes Plan, heat pumps will be the best and cheapest form of electrified heating for the majority of homes, therefore we are focusing our innovation funding to support increasing their deployment and attractiveness to consumers.

The Department is currently trialling a Retrofit Innovation Panel, alongside Energy Systems Catapult, which will help inform future work on allowing more innovators to enter the market.

12. Can Boiler Upgrade Scheme funding be used as match funding?

Grant funding provided through the Boiler Updated Scheme (BUS) is public funding and therefore cannot form part of an organisations match funding. Details of match funding requirements are set out in Section 8 of the Competition Guidance.

Heat pump system testing

13. I’m only developing a component of a heat pump system, I’m assuming I test its individual performance, rather than as part of a heat pump system?

Projects developing an individual component are required to test their component within a full heat pump system providing heating and hot water to a home, as set out in Section 3 of the Competition Guidance.

14. I’m developing a software product, is it still a requirement that the project provides system Seasonal Performance Factor evidence?

Innovative software projects (as part of barrier 4 eligibility) that materially influence the energy performance of heat pump systems must demonstrate that when used to support the installation, or equivalent, of a complete heat pump system, the system is capable of achieving a Seasonal Performance Factor of at least 3.5 in a real‑world home environment by the end of the funded project period. This means projects must record a minimum of 12 months’ worth of performance data on an in-situ innovative heat pump system trialled within a home. See Annex 14 of the Competition Guidance for more information.

Project consortiums

15. It’s hard for me to find consumers to trial my heat pump system 2 years in advance of installing, can I add these to my project later?

Achieving commercialisation of applicants’ proposed innovation including relevant testing and proving of the innovation is a fundamental requirement of the competition. As part of the application process (Section 11 of the Competition Guidance) applicants are required to demonstrate a planned route for testing and proving their innovation with consumers. Any deviations from an applicant’s submitted proposal would require to be approved via the change request process explained in Section 6 of the Competition Guidance.

16. How, within a project consortium, does the governance differ between the project lead and project partner and project lead or project partner and subcontractor?

Within a consortium, governance between the project lead and project partners is typically collaborative and set out in a Collaboration Agreement (Section 4 of the Competition Guidance), with shared roles, responsibilities and decision‑making. However, the project lead (as grant recipient) remains accountable to the Department for overall delivery and for ensuring all partners comply with the Grant Funding Agreement.

By contrast, subcontractors (Section 10 of the Competition Guidance) may be engaged by the project lead or a project partner to provide defined goods or services. They do not normally participate in consortium governance or decision‑making. Responsibility for subcontractor performance, compliance and assurance sits with the organisation appointing them, and subcontracting does not transfer accountability to the Department.

17. Can a sub-contractor be involved in more than 3 projects?

There is no limit on how many projects a sub-contractor can be involved in. However, it is the project lead’s responsibility to ensure and evidence, where required, that the sub-contractor is suitably resourced to provide its’ services to applications which they are part of. Applicants must consider guidance set out in Section 10 of the Competition Guidance which defines the role of sub-contractors versus project consortium members. As part of the assessment and due diligence, DESNZ will review the use of sub-contractors to ensure the use of sub-contractors aligns with the Competition Guidance.

18. Can I add a project partner later within the project timeline?

Projects may request, via the change request process, to add/replace a partner to their project. All change requests are subject to approval by the Department, and projects must not depend on approved change request to deliver their project.

19. Can organisations carrying out non-economic activity be included in more than 3 applications?

For an organisation to be defined as carrying out non-economic activity, they must be included as a project partner. Project partners cannot be included in more than 3 applications to the competition.

Project timelines

20. Under what circumstances could my project start before the 1st February 2027?

Projects are unable to claim funding for the project prior to a signed grant funding agreement being in place. To be issued with a grant funding agreement for signature, projects must have completed financial due diligence undertaken by the Department. This due diligence process is carried out between the conditional award of the grant and issuing of a grant funding agreement. Any work carried out during this period will be at the risk of the project as the Department does not guarantee funding for any work carried out prior to a signed grant funding agreement being in place.

As due diligence requirements are specific to individual projects and organisations, there may be projects which complete this due diligence process ahead of 1st February and therefore are issued a grant funding agreement ahead of this date.

For project planning purposes, projects should aim to start from 1st February 2027.

21. Can my project finish before January 2030?

Project may choose to complete before January 2030. However, projects must ensure they have scheduled time (at least 2 months) following the completion of all its funded activities in order to allow time for approval of final grant claim, final project report and the project reasonable assurance report covering all project expenditure under the grant.

Project financing

22. I need more than the number of rows available in the project cost breakdown form, given the spreadsheet is locked, how should I add these?

An applicant can add rows themselves. If they are unable to do this please send a copy of your project cost breakdown form, and details of the number additional rows required to heatinnovation@energysecurity.gov.uk – the team will be able to amend the spreadsheet to accommodate your request.

23. If successful, do I need to be able to evidence all the project match funding before a Grant Funding Agreement (GFA) is issued?

At the point of the Department undertaking due diligence, the Department will require a credible plan, with supporting evidence, that you will have sufficient resources to pre-fund expenditure as required by the grant and have sufficient match funding in place to complete the project. The specific evidence will vary on a case-by-case basis, but could include for example, letters of intent from funders or existing resources. We may also require an understanding of anticipated cashflows (see Section 10 of the Competition Guidance). 

24. Is there a maximum percentage of project costs which can be allocated to a research organisation, such as a university?

For research organisations, including universities, activities are described as either being an economic activity or a non-economic activity. The eligible project costs incurred by all non-business partners, carrying out non-economic work, (e.g. Universities, Research and Technology Organisations (RTOs), public sector, third sector and community organisations) in a consortium must be less than 30% of the total eligible project costs. See Annex 1 of the Competition Guidance for more details of eligible costs.

25. Will I have the opportunity later in my project to amend my project plan for example if I need to change the approach to consumer trials or technology testing?

The Department recognises that through the delivery of an innovation project, elements may change therefore projects may request changes to their project delivery through the Department’s change request process as set out in Section 6 of the Competition Guidance.

26. If my plan is to bring a partner into the project later, how will I do this?

Applicants must include within their delivery plan, how and when they will recruit additional project partners. Details of the skills and expertise they will require should also be included within their response to Question 3C of the assessment criteria. Applicants should also include indicative costings for partners who are to brought into the project later.

Projects should ensure that any partners added to their project whilst in delivery ensure the application delivers against the same requirements (expertise, value for money, costs etc) as set out in the original application.

Any change in this will need to be agreed and approved by the Department through its through its change request process outlined in Section 6 of the Competition Guidance and detailed in question 7.6 below.  

27. Will I have the ability to change my projects costs/scope/time when onboarding a partner?

Projects will have the ability, through the change request process, to set out any changes which are required against their original delivery plan as submitted as part of their application, this applies to the onboarding of a new partner, as well as any other changes.

The Change Request process is set out from page 32 of the Competition Guidance. All change requests are considered by the Department fairly and equitably and are considered against a range of criteria including, but not limited to, whether the change remains in line with the original grant funding application, is affordable to the Department, demonstrates value for money and is deliverable by the project. Once considered by the Department the outcome of the change request will be communicated to the project lead organisation. Project should not depend on change requests being approved to enable the successful delivery of their project.

Acceleration support

28. I’m interested in bidding to deliver the Acceleration Support contract, when will the tender be going live and where can I find out more?

Please see the link below for details of planned market engagement activities for suppliers potentially interested in the provision of Acceleration Support services:

https://www.find-tender.service.gov.uk/Notice/036907-2026

29. Can I apply to receive acceleration support if not applying for grant funding as I’d like to be involved in some of those activities, such as engaging with policy teams and being included in dissemination reports?

No. Acceleration support services will only be offered to HPR Round 2 innovation funding competition grant recipients (see Section 6 of the Competition Guidance).

30. Do I need to take part in the acceleration support activities?

All projects will be required to participate in Acceleration Support Work Packages 2 & 3 (Collaboration and Dissemination tasks) and will be offered optional support through Acceleration Support Work Packages 1 & 4 (Commercialisation and Social Value tasks). See Section 6 of the Competition Guidance for more information.