Contracts for Innovation: Net Zero Living Tech Trials, phase 3

Key Features

Organisations can apply for a share of £800,000, inclusive of VAT, to develop pre-commercial innovations that support Local Authorities in meeting net zero goals.

Programme:     Innovate UK

Award:     Share of up to £800,000

Opens: 19th May 2025

Closes: 25th Jun 2025

! This scheme is closing soon

Overview

This is a Contracts for Innovation competition funded by Innovate UK.

Scope

The aim of this competition is to conduct extended field trials to evaluate and enhance any emerging technological solution focused on helping Local Authorities in the UK meet their net zero ambitions.

This will lead to insight and feedback from future users and customers to make final adjustments to the product or service, that will lead to successful commercialisation.

In this Phase 3 you must further develop your existing pre-commercial innovation, deploying, testing and iterating in a real world or representative environment. You must work closely with potential users and customers, conducting the R&D to progress your project toward commercialisation.

Your potential users and customers can claim funding support to facilitate their involvement in the project. Applications will be evaluated on the level of commitment to the project and the solution demonstrated by the Local Authority partner or partners. The strongest applications would likely be able to highlight the authority’s intention to procure the solution if it can be shown to be effective. During the project all Local Authority partners should work to develop a business case to procure the solution after the project concludes.

You must demonstrate a credible and practical route to market, so your application must include a plan to commercialise your results.

Contracts will be given to successful applicants.

Specific Themes

Your project can focus on any area of net zero recognised as a priority by your collaborating Local Authority potential customers.

Eligibility

Your project

Projects must:

  • start on 1 September 2025
  • end by 30 June 2026
  • last between 8 and 10 months
  • have total costs of between £75,000 and £100,000, inclusive of VAT

Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Contract has been approved by Innovate UK.

You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.

Applicant

To lead a project, you can:

  • be an organisation of any size
  • work alone or with the subcontracted skills and expertise of others from business, research organisations, research and technology organisations, or the third sector (charities, social enterprises and voluntary groups)

Contracts will be awarded to a single legal entity only. The majority of the project work and key deliverables must be completed by the applicant and be carried out in the UK. Subcontractors can be used, but only for specialist skills.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Exclusions

Innovate UK will not fund projects that:

  • are not original in scope and duplicates someone else’s work
  • do not have an existing net zero innovation with a demonstrable need for real world research and testing ahead of commercialisation
  • do not demonstrate the full engagement and support of at least one Local Authority as a potential future customer
  • do not propose to work directly with potential future users to enhance the innovation based on their feedback
  • result in a significant negative overall environmental impact
  • have existing commercial agreements to deliver the proposed solutions

Funding Costs

A total of up to £800,000, inclusive of VAT, is allocated to this competition.

The total funding available for the competition can change. The funders have the right to:

  • adjust the provisional funding allocations
  • apply a ‘portfolio’ approach

The contract is completed at the end of the competition, and the successful organisation is expected to pursue commercialisation of their solution.

Value Added Tax (VAT)

You must select whether you are VAT registered before entering your eligible project costs.

VAT is the responsibility of the invoicing business. We will not provide any further advice and suggest you seek independent advice from HMRC.

VAT registered

If you select you are VAT registered, you must enter your eligible project costs exclusive of VAT. As part of the application process VAT will be automatically calculated and added to your project cost total. Your total eligible project costs inclusive of VAT must not exceed £100,000.

Not VAT registered

If you select you are not VAT registered, you must enter your eligible project costs exclusive of VAT and no VAT will be added. You will not be able to increase total project costs to cover VAT later should you become VAT registered. Your total project costs must not exceed £100,000.

Research and development (R&D)

Your application must have at least 50% of the contract value attributed directly and exclusively to R&D services, including solution exploration and design. R&D can also include prototyping and field-testing the product or service. This lets you incorporate the results of your exploration and design and demonstrate that you can produce in quantity to acceptable quality standards.

R&D does not include:

  • commercial development activities such as quantity production
  • supply to establish commercial viability or to recover R&D costs
  • integration, customisation or incremental adaptations and improvements to existing products or processes

Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.