Smart control solutions for domestic hybrid heating systems

Hybrid heating systems could offer the benefits of both electric and gas heating by providing flexibility across energy vectors. This could reduce customer bills, network costs and carbon emissions. The Innovation Exchange programme is supporting Cadent to identify safe, customer-centred and interoperable solutions that can realise these benefits. The technology must determine when a domestic hybrid heating system should use the electric heat pump, the gas boiler or both. Its primary objective should be to minimise customer energy costs within local network constraints, while also considering carbon impact, comfort and resilience.

Opportunity

Challenge opens

20/10/2026

Challenge closes

01/12/2026

Benefit

Cadent is seeking smart control solutions that optimise individual domestic hybrid heating systems in response to signals from energy suppliers and networks. These may include variable electricity and gas prices and live network capacity or load data. Solutions must allow authorised parties to update tariffs and associated control settings remotely, without a site visit, as prices change or networks approach safe capacity limits. They may also respond to carbon intensity, weather and flexibility signals. Successful applicants will be invited to pitch to Cadent and may be considered for technical engagement, UK trial development and future innovation activity. Selection does not guarantee funding, procurement, deployment or a commercial relationship.

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Background

Cadent operates gas distribution networks serving 11 million homes, 40,000 businesses and communities across Great Britain’s busiest urban conurbations. It is exploring affordable and practical pathways to lower-carbon heating while maintaining safe and reliable services for customers.

Hybrid heat pumps combine an electric heat pump, a gas boiler and intelligent controls. They may provide a transition pathway for homes or communities where full electrification is not practical, affordable or to the customer’s preference, using electricity when advantageous while retaining a boiler for peak demand, extreme weather, comfort, resilience or cost optimisation.

Cadent is developing real-world experience of the customer transition to HHPs through a small-scale domestic hybrid heating programme. This challenge extends that learning by exploring control in response to variable prices and whole-system signals. It will run separately from, but in parallel with, a similar call in France; this challenge is specific to the UK market, regulatory context, tariffs and consumer needs.

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