The Department for Business, Energy and Industrial Strategy published the Heat Pump Ready Programme Stream 1, Phase 2 page on 17 October 2022, opening the competition to applications1. The page was updated on 27 October 2022 with clarification questions1.
The competition aims to design and demonstrate "innovative, optimised solutions and methodologies which deliver more cost-effective and high-density deployment of domestic heat pumps"1. Funding is awarded through the Small Business Research Initiative (SBRI) approach, which the department describes as a process that enables development of innovative products and services in response to specific challenges faced by government departments and public-sector bodies1. The competition and the SBRI approach are not limited to small and medium sized organisations1.
Eligibility is narrow. Only contracted selected Stream 1 Phase 1 projects may apply to Stream 1 Phase 2, and Stream 1 Phase 1 is closed to applications1. Eligible projects were told they would have received details of how to apply1.
The programme sets out three intended outcomes for Stream 1 projects1:
| Intended outcome | Detail as stated |
|---|---|
| Improved consumer journey | A complete, "hassle free" journey for the consumer |
| Cost reduction for consumers | Through coordinated provision of heat pump deployment to a high density of buildings in a single area |
| Understanding network impacts | Through engagement with Distribution Network Operators, providing flexibility using multiple heat pump installations in a given area |
The department states the programme supports high-density deployment of heat pumps in the UK through the development and trial of innovative solutions and methodologies1.
"The Heat Pump Ready Programme, Stream 1, Phase 2 competition aims to design and demonstrate innovative, optimised solutions and methodologies which deliver more cost-effective and high-density deployment of domestic heat pumps."
Why it matters for households
The competition is aimed at the cost and disruption of installing heat pumps at scale rather than at individual grants. Its stated goals are a simpler consumer journey and lower cost per household where installations are concentrated in one area, plus an understanding of what many heat pumps in one place do to the local electricity network1. Those network effects, and the coordination between installers, supply chains and distribution operators, are the parts of domestic heat pump rollout that bear on whether a household can run a heat pump without upgrading its supply or facing constraints. The page does not set out any consumer-facing offer, payment or eligibility for individual households, and no funding figures for this phase are given1.
What happens next
The deadline for applications to Stream 1 Phase 2 was 2pm on 7 November 20221. The page records that clarification questions were added on 27 October 20221. No award dates, funding totals or list of successful Stream 1 Phase 2 projects appear on the page1. Further detail on government support for heat pump installation is set out in the grants and schemes section.