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The fund is designed to strengthen the region's supply chain, create skilled jobs and help establish South West Wales as a centre of excellence for renewable technologies. The fund will provide grants ranging from £100,000 to £1 million to support businesses involved in the manufacture of renewable technologies and component parts. 

Developing a stronger local supply chain will also help increase the region's capacity to meet growing demand from households wanting to install renewable technologies. By supporting more local businesses to manufacture these technologies, the fund can help make it easier for residents to access solutions that reduce energy bills, improve energy efficiency and support the transition to lower-carbon homes.

Funding is open to start-ups looking to invest in renewable technologies, small businesses seeking to expand capacity, and larger companies wanting to diversify their product offerings. 

The investment, through the Swansea Bay City Deal's Homes as Power Stations (HAPS) project will focus on technologies including heat pumps, solar photovoltaic systems (also known as solar panels), intelligent energy systems, domestic battery storage, power walls and infrared heating technologies, alongside other innovative renewable solutions.

Demand for renewable technologies continues to grow as households look to reduce energy costs and carbon emissions. However, many of the products and components needed are currently sourced from outside South West Wales and, in some cases, from overseas. The fund aims to strengthen local manufacturing capabilities and supply chains, ensuring more of the economic benefits are retained within 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 will help position South West Wales as a centre of excellence for renewable technologies while supporting economic growth and ensuring more households can benefit from the lower energy costs these technologies can provide.”

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.

“By supporting businesses to diversify and expand, we can strengthen local supply chains, create high-quality jobs and ensure more of the economic benefits from the transition to low-carbon homes are retained within our region.”

Jonathan Burnes, Portfolio Director for the Swansea Bay City Deal, said:

"The Homes as Power Stations Supply Chain Fund demonstrates how the Swansea Bay City Deal is investing not only in technology and infrastructure, but also in the businesses that will help drive long-term economic growth.

"By strengthening local supply chains and supporting innovation, we are creating opportunities for companies across the region to play a leading role in the transition to smarter, lower-carbon homes.

Businesses interested in applying are encouraged to review the eligibility criteria and application guidance before submitting their proposals. Applications close on 9 November 2026, and all funding must be allocated and spent by December 2027.

For further information, including details of an upcoming Q&A session, visit the HAPS Supply Chain Fund webpage or email haps@npt.gov.uk.