MSI: SME resource and energy efficiency – feasibility studies

Overview

Innovate UK’s Made Smarter Innovation (MSI) programme is funding feasibility studies to explore new industrial digital technologies (IDTs) that improve energy and resource efficiency for UK SME manufacturers. Solutions must be affordable, easy to use, and scalable across SMEs. Total MSI pot across both strands is up to £15.5m; this summary covers Strand 1: Feasibility Studies.

Scope

Feasibility projects should research and shape a digital solution for real manufacturing settings, stating the theme, IDT, sector, and efficiency link, and demonstrating novelty. Required outputs include evidence the concept can deliver efficiency gains and be adoption-ready, plus a follow-on Industrial Research proposal (exec summary, market and financial feasibility, route to market, draft spec, IP plans, and recommendations).

Key themes and topics

Resource efficiency (examples): raw material waste; production-process waste; packaging waste (incl. single-use); maintenance/servitisation waste (fluids, components); utilities waste; end-of-life waste.
Energy efficiency (examples): boilers/steam; compressed air/vacuum; motors/pumps/hydraulics; induction/welding; chilling/freezing; spray/extraction/drying; ovens/kilns/furnaces; heavy machinery/presses.

Project duration

• Total eligible costs: £25,000–£150,000
• Length: 3–6 months
• Start: 1 April 2026 (projects start on the first of a month)
• End by: 30 September 2026

Award value

Funding is by grant within the above cost range (feasibility strand). Overall competition funding across both strands is up to £15.5m.

Funding rates (Feasibility)

• Micro/Small: up to 70% of eligible costs
• Medium: up to 60%
• Research participation: research organisations (non-economic activity) can share up to 30% of total eligible costs (RTOs/research orgs up to 100%; Je-S academics up to 80% FEC).

Eligibility criteria

• Lead: UK-registered SME technology developer (academics cannot lead or work alone).
• Consortium (optional): may include one or more UK SME manufacturers claiming grant, plus academics/RTOs/research orgs.
• Collaboration rules: any one partner ≤ 70% of total eligible costs.
• Location: all project work carried out in the UK; results exploited from or in the UK.
• Subcontractors: allowed (UK or overseas with strong justification).
• Applications per business (across both strands): lead up to 2 and collaborate on 1 more; if not leading, collaborate on up to 3.