£7m fund opens for home energy equipment manufacturers

Nation.Cymru staff

Businesses can apply for grants of up to £1 million to manufacture home energy equipment and components following the launch of a new £7 million fund in south west Wales .

The scheme is open to firms across the region, with funding available for start-ups, smaller businesses expanding production and larger companies moving into new products.

Grants range from £100,000 to £1 million and will support technologies including heat pumps, solar panels, battery storage, smart energy controls and infrared heating.

The Supply Chain Fund forms part of the Swansea Bay City Deal’s Homes as Power Stations project, which aims to support more energy-efficient, lower-carbon homes.

Applications close on November 9, 2026, and all funding must be allocated and spent by December 2027.

The project says many of the products and components needed for domestic energy installations are currently sourced from outside south west Wales, including overseas.

It wants more of that manufacturing to take place locally, allowing businesses in the region to benefit from household spending on equipment intended to reduce energy use and bills.

The grants are aimed at companies making these products and their components, rather than residents seeking funding to install them.

Oonagh Gavigan, Homes as Power Stations project manager, said: “This fund is about helping businesses across South West Wales grow, innovate and meet the increasing demand for home energy technologies.

“There is growing interest from households looking to install technologies such as heat pumps, solar panels and battery storage, and this investment will help more of those products and components be manufactured closer to home.”

Alongside increasing production, the scheme aims to create skilled jobs and encourage investment in the region.

Councillor Jeremy Hurley, cabinet member for climate change and economic growth, said: “By supporting the development of a local supply chain for renewable technologies, we can create skilled jobs, attract investment and ensure the region has the expertise needed to deliver more energy-efficient homes.”

The fund also covers other new renewable technologies beyond those listed, with businesses asked to consult the eligibility criteria and application guidance before submitting proposals.

A forthcoming question-and-answer session will give potential applicants an opportunity to find out more about the scheme.

Further information about the grants and the session is available on the HAPS Supply Chain Fund webpage. Businesses can also contact the project team by emailing [email protected].

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