Recently, I had the privilege of engaging with some of the UK’s most pioneering small and medium-sized enterprises (SMEs) in the energy sector – Amp X, Electron, measurable.energy, Wondrwall, Atamate, Heat Geek, and Tepeo among them.
The evening was inspiring and served as a vivid reminder of the essential role these dynamic innovators play in driving the green transition and getting us to Net Zero. Their passion and feedback underscored not only the progress we’ve made but also the further support needed to help turn their ambition into action. The opportunity for these SMEs to lead in green growth is vast, and bolstering their journey is a strategic imperative.
Conversations with these forward-thinking companies highlighted several critical needs for their continued success. Access to comprehensive data and actionable insights is fundamental to stimulating innovation and guiding strategic decisions. High-quality, open datasets can significantly reduce risk during product development, allowing businesses to iterate with greater precision. For example, data on energy consumption patterns or grid performance can help SMEs refine their solutions to meet real-world demands more effectively. This type of targeted innovation reduces the uncertainty that can stall or complicate product and service development.
Another essential factor is the validation of these innovative products and services. Demonstrating efficacy in real-world environments is crucial for SMEs seeking to gain trust from clients, investors, and regulators. Our Living Lab, a network comprising over 5,000 homes, exemplifies this approach by enabling companies to observe authentic user interactions and responses. equiwatt, for instance, used this setting to track electricity-saving behaviours and adapt its app-based rewards scheme based on real consumer use and feedback. Such validation not only proves the functionality of a product or service but can highlight additional benefits or areas for improvement that may not emerge in controlled, laboratory settings.
Understanding market opportunities is crucial. While knowing the size of the market is important for any business, for SMEs it is transformative. Insights into the total addressable market help SMEs tailor their business strategies and allocate limited resources effectively.
Supporting them in overcoming accreditation barriers further ensures that their innovative products meet regulatory standards and are ready for wide-scale deployment. Additionally, understanding consumer and business demand for different clean technologies supports growth, informs SME development, and shapes their marketing efforts.
Understanding the market and overcoming policy and regulatory hurdles is not just something we offer in the UK. Through pioneering programmes such as Innovating for Transport and Energy Systems (ITES) in India and Innovating to Net Zero Energy Systems (INES) in Brazil, we’re helping UK-based SMEs understand and navigate international markets to help them scale their Net Zero energy solutions beyond the UK’s shores.
SMEs require support that addresses investment and operational risks. Beyond data, they need assistance in tackling integration challenges, such as ensuring that new technologies can seamlessly connect with existing energy infrastructure. This is particularly relevant when dealing with grid compatibility or energy storage solutions. Our modelling and testing facilities, such as the Whole Energy System Accelerator (which combines our Living Lab and PNDC’s capabilities in network emulation), offers comprehensive insights that simulate complex integration issues, allowing businesses to develop solutions that are deployment-ready and fit for a Net Zero future. This type of support fosters confidence in their investment and scaling strategies, minimising financial and operational risks.
We provide tailored support that spans multiple aspects of an SME’s development. Through initiatives like the Energy Data Task Force and our ‘Presumed Open’ data-sharing principles, we seek to promote transparency and foster an environment where collaboration thrives. Platforms such as USMART enable SMEs to access critical data that help to fuel their innovation and strategic planning, creating a competitive edge that extends beyond guesswork.
Through our state-of-the-art facilities and strategic partnerships, we provide validation frameworks, allowing SMEs to benefit from rigorous, real-world testing. This approach has been pivotal for firms like equiwatt and Amp X, where the proven performance of their solutions has bolstered credibility with stakeholders, strengthened their market positions, and helped them raise crucial investment – since 2018, SMEs we’ve supported have raised over £500 million.
Additionally, we collaborate with SMEs to help them navigate regulatory frameworks and enhance consumer acceptance. For example, insights from the Electrification of Heat (EoH) Demonstration Project demonstrated significant consumer interest in having a heat pump installed with over 8,000 applications, but an aversion to disruption and noise during the installation and operation phases. These findings can feed directly into product development strategies, helping SMEs design solutions that are suited to consumer preferences and, ultimately, more marketable.
The most transformative innovations occur at interdisciplinary boundaries. Whether at the nexus of energy and health – as demonstrated by our Warm Home Prescription® service, which integrates energy efficiency with health benefits – or energy and digital technology, as seen in the Energy Digitalisation Taskforce and our subsequent work on the Enabling Distributed Flexibility for Net Zero report and Digitalising Energy Flexibility collaborative project with Digital Catapult. Cross-sector solutions are essential for building a comprehensive strategy toward Net Zero. City-scale projects like the City of York Pathfinder exemplify how communities, the public sector, and SMEs can collaborate across different industries and sectors to create resilient, adaptable energy solutions that benefit local communities.
Since 2018, SMEs that received our support have raised more than half a billion pounds in investment, a testament to their ability to design, deliver, and drive forward clean technology solutions that promote significant environmental and economic benefits. Evergreen Smart Power serves as a compelling example of how strategic incubation can accelerate growth. By leveraging our support, Evergreen scaled its platform to aggregate energy loads from electric vehicles and home heating systems, facilitating demand-side grid management and demonstrating the potential for SMEs to lead both domestically and on the global stage.
The journey to Net Zero is multifaceted and demanding, but the resilience, creativity, and collaborative spirit of the UK’s SMEs are crucial assets. By continuing to provide them with data, validation, market insights, and risk mitigation, we help unlock their full potential and position them as key players in a sustainable Net Zero economy. Investing in SMEs is not just about supporting green growth – it’s about shaping a resilient, consumer-focused, future-ready energy market.
Think you’ve got what it takes to lead our SME offer at home or abroad? Apply for our Business Leader positions below.
Find out more about how Energy Systems Catapult can help you and your teams
Find out more about how Energy Systems Catapult can help you and your teams