The firms have combined OVO Energy’s VCharge energy management platform with Sunamp’s UniQ Heat Batteries to make domestic heating cheaper, cleaner and smarter.
The project will allow domestic customers to heat their homes with cheap renewable electricity at off-peak times and store it to release heat on demand whenever it’s needed.
It aims to develop, test and demonstrate the feasibility of bringing smart electric central heating to the mass market.
The system serves as a drop-in replacement for hot water cylinder and gas fired boilers – currently, 90% of UK homes rely on burning natural gas for heating, representing more than a quarter of UK carbon emissions.
Energy and Clean Growth Minister, Claire Perry said: “By replacing fossil fuels with smart heating systems we have the potential to cut carbon emissions and save consumers money on their heating bills.
“This £1.6 million grant to develop a commercially viable smart electric central heating system is part of our commitment to fund the cutting-edge industries of the future through our modern Industrial Strategy.”