Heat Pump Investment Accelerator Competition: round 2

The Heat Pump Investment Accelerator Competition (HPIAC), worth up to £90 million in total, aims to bring forward investment in the UK heat pump manufacturing supply chain. It is open to UK registered businesses (which includes those that may be set up for the purpose of delivering the project in the application), who can apply for grant funding of up to £30 million per project, for major investments in the manufacture of heat pumps and strategically important heat pump components. The guidance outlines the process through which we will allocate scheme funding. It details: how the scheme works the eligibility criteria how to apply how applications are assessed how funding is allocated, including the contractual arrangements how successful projects should report progress How to apply The competition is open for applications. Read the guidance and all associated documentation. Complete the application form and supporting templates. Submit them to heatpumpaccelerator@energysecurity.gov.uk by 3pm on Wednesday 5 August 2026 . Question and answer sessions We will be hosting question and answer sessions for interested parties in the week beginning 18 May 2026. Email heatpumpaccelerator@energysecurity.gov.uk to register your interest by Friday 8 May 2026 . ### Summary | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As per section 18 in the Scheme Guidance and section D4 of the Application Form, in order to assess the case for assistance of your project, we require you to show the minimum amount of funding required to facilitate your project, and/or the amount of activity brought forward (and when) as a result of the funding. We have set out in the tabs below some illustrative examples based on the following: - 'Investment appraisal metrics' (as per the financial model for the deliverability assessment) - 'Activity brought forward' (as per the strategic assessment template) - 'GANTT chart' (as per the projec plan template for the deliverabilty assessment) Note that these examples are only illustrative. Feel free to provide different analysis if you think it better illustrates your project's case for assistance. Note also that data entered up to FY34 will be part of the assessment, and will be used to inform grant offer letter terms and conditions to be monitored during the project lifetime. Data entered for beyond FY34 is solely for the use of wider benefits analysis as part of the application assessment process. | | | | | | | | | | | | ### Investment appraisal metrics | | | | | | | --- | --- | --- | --- | --- | | | Drawing on the template as per the document 'Deliverability assessment template (financial model)'.xlsx', with this template you are able to show how the funding impacts investment appraisal metrics that might be instrumental in deciding whether to go ahead with a project or not) | | | | | | Worked Example | | | | | | £'000 | W/O funding | With funding | | | | Net profit | £5m | £6m | | | | Cash flows | £7m | £9m | | | | Discounted cash flows / NPV | £4.5m | £6.2m | | | | IRR% | 0.055 | 0.068 | | | | Payback period | 5.5 years | 4.9 years | | | | £'000 | W/O funding | With funding | | | | Net profit | | | | | | Cash flows | | | | | | Discounted cash flows / NPV | | | | | | IRR% | | | | | | Payback period | | | | ### Activity brought forward | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Drawing on the template as per the document 'Strategic assessment template.xlsx', with this template you could show how much activity (in terms of volumes) would be brought forward as a result of the funding | | | | | | | | | | | | | FY assumed to be 01-Apr to 31-Mar, but if yours is different please note this | | | | | | | | | | | | | Without funding | | | | | | | | | | | | | Item being produced | Unique ref / model | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | Beyond | | Worked Example | Manifold | Manifold ABC123 | | 5000 | 8000 | 9500 | 10000 | 10000 | 10000 | 10000 | 10,000 p.a. for 5 years | | | With funding | | | | | | | | | | | | | Item being produced | Unique ref / model | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | Beyond | | Worked Example | Manifold | Manifold ABC123 | 2500 | 7500 | 10000 | 10000 | 10000 | 10000 | 10000 | 10000 | 10,000 p.a. for 5 years | | | Difference | | | | | | | | | | | | | Item being produced | Unique ref / model | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | Beyond | | Worked Example | Manifold | Manifold ABC123 | =D14-D8 | =E14-E8 | =F14-F8 | =G14-G8 | =H14-H8 | =I14-I8 | =J14-J8 | =K14-K8 | | ### Summary | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As per section 17 in the Scheme Guidance and section D3 of the Application Form, in order for us to assess the deliverability of your project, we require a financial model that sets out the profitability and expected financial performance of your project We have provided an illustrative template/example set across four tabs, being: - Profit & loss account - Cash flows - KPIs - Investment appraisal metrics Note that the templates/examples set out below are only illustrative. Feel free to provide different information if you think it better illustrates your project's expected financial performance Note also that data entered up to FY30 will be part of the assessment, and will be used to inform grant offer letter terms and conditions to be monitored during the project lifetime. Data entered for beyond FY30 is solely for the use of wider benefits analysis as part of the application assessment process. | | | | | | | | | | | | | | | ### Profit & loss account | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Profit & loss account (£'000) | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | Beyond | Total | | | Revenue | | | | | | | | | | | | | Raw materials / components | | | | | | | | | | | | | Direct labour | | | | | | | | | | | | | Other cost of sales | | | | | | | | | | | | | Cost of sales | | | | | | | | | | | | | Gross profit | | | | | | | | | | | | | Gross margin % | | | | | | | | | | | | | Rent and rates | | | | | | | | | | | | | Repairs & maintenance | | | | | | | | | | | | | Utilities | | | | | | | | | | | | | Indirect labour | | | | | | | | | | | | | Admin costs | | | | | | | | | | | | | Other operating costs | | | | | | | | | | | | | Operating costs | | | | | | | | | | | | | EBITDA | | | | | | | | | | | | | EBITDA % | | | | | | | | | | | | | Depreciation | | | | | | | | | | | | | Amortisation | | | | | | | | | | | | | Interest and financing costs | | | | | | | | | | | | | Profit before tax | | | | | | | | | | | | | Profit before tax % | | | | | | | | | | | | | Tax | | | | | | | | | | | | | Profit after tax | | | | | | | | | | | | | Profit after tax % | | | | | | | | | | | | | FY assumed to be 01-Apr to 31-Mar, however if yours is different please note this | | | | | | | | | | | ### Cash flows | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Cash flows (£'000) | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | Beyond | Total | | | EBITDA | | | | | | | | | | | | | Setup capex | | | | | | | | | | | | | Ongoing capex | | | | | | | | | | | | | Project capex cash flows | | | | | | | | | | | | | Financing inflows (government funding) | | | | | | | | | | | | | Financing inflows (private sector funding) | | | | | | | | | | | | | Financing inflows | | | | | | | | | | | | | Financing repayments (government funding) | | | | | | | | | | | | | Financing repayments (interest) | | | | | | | | | | | | | Financing outflows | | | | | | | | | | | | | Movement in net working capital | | | | | | | | | | | | | Other | | | | | | | | | | | | | Other cash flows | | | | | | | | | | | | | Total cash flows | | | | | | | | | | | | | FY assumed to be 01-Apr to 31-Mar, however if yours is different please note this | | | | | | | | | | |