Sunamp will receive £9.25m to develop and trial its thermal storage system in 100 homes across the UK.
The Tranent-based business will extend its existing heat battery to provide increased storage duration and capacity, pairing it with household energy systems to tackle periods of low renewables generation on the grid.
The funding is awarded through the Longer Duration Energy Storage Demonstration programme, part of the Net Zero Innovation Portfolio, which provides money for low-carbon technologies and systems.