The programme will be delivered across two phases:
Stage 1: Discovery Phase (Up to ~6 months)
Will support up to ~20 projects with low value grants. Applicants funded to undertake research aimed at acquiring the knowledge and skills for developing new, novel products and services and to produce robustly evidenced product pilot proposals.
Stage 2: Pilot Phase (Up to ~15 months) Will support up to ~15 projects with high value grants. Projects which successfully progress through Stage 1 will be funded to create and test their lending product(s) on the market.
The GHFA competition opened for Discovery Phase applications on 18 October 2022 and closed on 14 December 2022. Successful Discovery Phase projects are expected to start in March 2023.
Organisations participating in the Discovery Phase will also have an opportunity to apply for the Pilot Phase which is expected to start in September 2023.
An indicative timeline of the programme is provided below:
To be eligible to apply for the GHFA grant competition, interested organisations must meet the following indicative Discovery Phase eligibility criteria:
- Types of Product(s) and/or Service(s) Funded: The GHFA is funding the development of green finance product(s) and/or service(s)
- Project Location: The project must be led by a UK-based organisation (UK-based is defined as an organisation that has an establishment or subsidiary registered in the UK). At least 50% of the project activities, as measured by total eligible project costs, must be conducted in the UK, and any product pilot activities must take place in the UK with UK consumers.
- Project Team Composition: Projects must be delivered by individual UK based organisations (sole applicants) or by a consortium of UK based project partners led by a UK based organisation (consortium applicants).
- Match Funding: In line with subsidy control principles, only a portion of the total eligible project costs can be funded by BEIS grant funding and applicants will need to have private funding in place to cover the balance of the eligible costs. Such funding may come from an organisation’s own resources or external investors, but it may not include funding attributable to any public authority (in the UK or elsewhere).
- Project Status: BEIS is unable to fund retrospective work on projects. The impact of retrospective work may however be considered in the assessment process. BEIS cannot fund the development of processes, technology or products which are already at commercial design stage at the start of the Discovery Phase, or which are already commercially or widely deployed in the UK or internationally.
- Additionality: Projects can only be funded where justification can be provided that the innovation would not be taken forwards (or would be taken forwards at a much slower rate) without public sector funding.
- Grant Size: The total requested grant for the Discovery Phase is a minimum £50k and must not exceed £200k (for the Pilot Phase the total grant requested shall be a minimum £200k and must not exceed £2m).
- Eligible Project Costs: Funding is for R&D (industrial research and experimental development) activities only.
- Multiple Applications / Proposals: Organisations may participate (as either a project lead and/or consortium member) in a maximum of up to three applications / proposals only. Organisations must not apply for funding for the same piece of work more than once.
- Delivering Multiple Projects: Funding recipients must be able to deliver work if they are part of multiple successful applications.
Interested organisations should read the full eligibility criteria found in the Competition Guidance Notes before beginning their application.
Interested organisations should read the full eligibility criteria when the competition is launched.
Key stages of the Disovery Phase competition
Market and stakeholders become aware of the GHFA, participate in webinars / events and feedback on the approach.
Interested organisations complete an online application for Discovery Phase funding. (by 12:00pm noon 14 December)
Applications are assessed by an expert panel against pre-defined eligibility and assessment criteria.
Pending due diligence checks, successful applicants will be issued with a grant offer.
Discovery phase begins
Grant Agreements are signed and project prepared for Discovery Phase Kick-off. (Mar 2023)
Dissemination and knowledge sharing during and at the end of each phase will be a key requirement of GFHA. Applicants will be expected to share useful data, lessons learned and experience through relevant industry forums and with the GHFA team.
The GHFA is being delivered by PwC UK on behalf of BEIS. PwC with support from the Carbon Trust will lead market engagement, manage the competition process, monitor project performance and capture / share learnings from the projects. BEIS will have ultimate decision making on grant awards and distribute payments.
The Green Home Finance Accelerator is being supported by PwC and the Carbon Trust.