UK Space Agency NSIP Call 3 2026–2027: Up to £2 Million for UK Space R&D Projects, Outline Proposals Closing 21 August 2026

UK Space Agency NSIP Call 3 2026–2027: Up to £2 Million for UK Space R&D Projects, Outline Proposals Closing 21 August 2026

The UK Space Agency (UKSA) has opened Call 3 of the National Space Innovation Programme (NSIP), a substantial co-funded grant opportunity for UK-based organisations developing space technologies, applications, services and related business models. The call is designed for projects that can move beyond an interesting concept toward a higher technology readiness level, a credible customer market and a route to commercial or scientific exploitation.

The programme has two routes. NSIP Kick Starter is intended for earlier-stage, highly disruptive innovation, broadly around Technology Readiness Levels (TRLs) 1–4. NSIP Major Projects is aimed at projects operating at higher TRLs, broadly 5–9, where commercialisation, growth and investment are central. Kick Starter applicants may request £150,000 to £1 million. Major Project applicants may request £150,000 to £2 million. Across both routes, UKSA intends to make up to £20 million available and anticipates selecting approximately 15 to 30 grants.

The immediate opportunity is the Stage 1 outline proposal. It must be submitted through the Flexigrant portal by 23:59 on Friday 21 August 2026. Successful outline applicants are expected to be invited to submit a full proposal, with the second-stage deadline set for 23:59 on Thursday 12 November 2026. Successful applicants are expected to be notified on 8 February 2027, and projects are expected to start from 1 April 2027 and finish no later than 30 September 2029.

Key details

What the programme is designed to fund

NSIP is not a general business-support award and it is not intended to pay for routine operations. The call seeks innovative research and development that raises the readiness, capability or market potential of a novel space product, service, application, technology or business model. Acceptable work can include proof-of-concept research, prototype development, engineering models, relevant-environment testing, adaptation of technology from a non-space sector, satellite applications and space-related service development.

The proposal needs to show more than technical novelty. UKSA describes the programme as a way to de-risk high-reward R&D with a clear target market. That means a convincing application should connect the proposed work to a real user, buyer, mission need or adoption pathway. A technically impressive component without a plausible reason that someone will use or pay for it may be a weak NSIP fit. Similarly, a commercial product that only needs routine feature updates is unlikely to meet the R&D and additionality requirements.

Most of the call is open to proposals from any part of the space sector. UKSA has also identified four government priority subsectors: Space Domain Awareness, In-Orbit Servicing, Assembly and Manufacturing, Assured Access to Space, and Satellite Communication Technology. Up to 40% of the Call 3 budget is intended to be targeted at Space Domain Awareness and In-Orbit Assembly and Manufacture, with approximately 20% for each of those two themes. Projects outside those two themes can still apply, but applicants in other areas should make their fit with the wider NSIP objectives especially clear.

The thematic examples are broad. Space Domain Awareness work could involve sensors, software, modelling or analysis that identifies satellites, detects faults, characterises payload or electromagnetic activity, or estimates materials and mass. In-orbit assembly and manufacturing work could cover robotics, AI-enabled control, remote manipulation, joining methods, additive manufacturing, manufacturing payloads, in-situ verification or re-entry of products made in space. These examples are signals of interest, not a closed list.

Who can apply and who should consider it

The lead organisation requesting funds must be UK-based. The project must have a space application, and the requested grant must fall within the published range for the chosen stream. UKSA can reject proposals that do not meet public-funding eligibility requirements, fall outside the call remit or fail to demonstrate that public support is necessary.

The programme can suit a UK space company developing a product toward a customer demonstration, a university or research organisation advancing a technology with an exploitation pathway, or a consortium combining technical capability with market access. Research organisations may include universities, non-profit research and technology organisations such as Catapults, public-sector organisations, public-sector research establishments, research council institutes, other research organisations and qualifying charities. A research organisation pursuing economic activity may be treated as a business enterprise for subsidy-control purposes, so the applicant should classify its activities carefully.

Industry applicants are limited to one application per lead organisation per scheme. In practice, a business can submit no more than one Kick Starter-led application and/or one Major Project-led application. Academic institutions and research organisations may submit up to three proposals per scheme. These limits apply to the organisation submitting as lead; partners can still participate in other applications where they are not the lead. Organisations should coordinate internally before anyone submits a proposal so that the strongest ideas are prioritised.

A collaboration is not mandatory. However, if the outline names project partners, the application must include letters of intent confirming their involvement. Missing letters of intent can lead to rejection. The lead organisation remains responsible for delivery, partner due diligence and the eventual collaboration arrangements. A successful lead must have collaboration agreements signed within six weeks of completing the Grant Funding Agreement, and those agreements must address the flow-down of grant terms and the handling of results, intellectual property and possible spinouts.

Choosing between Kick Starter and Major Projects

The correct stream should follow the project’s real maturity rather than the size of the requested budget. Kick Starter is broadly for early-stage, disruptive ideas around TRL 1–4. It can be appropriate when the central challenge is proving a novel technical principle, developing an early prototype or testing whether a new concept can progress toward a useful space application. The maximum project length is 30 months and the grant request is £150,000 to £1 million.

Major Projects is broadly for TRL 5–9 work with a stronger emphasis on commercialisation and growth. The project might be validating a system in a relevant environment, building a product around a proven core technology, completing a customer-facing demonstration or reducing the technical and market risks that stand between a capable prototype and adoption. The grant request is £150,000 to £2 million, again for no more than 30 months.

Do not select Major Projects merely because the budget is larger. Reviewers will expect the maturity, delivery plan, customer evidence and exploitation route to match the stream. Conversely, an early-stage proposal should not imply a near-term market position that its evidence cannot support. State the current TRL, the TRL you expect to reach, the tests that will show progress and the customer or mission decision that progress will enable.

NSIP funding is provided on a cost-recovery basis. It is not an unrestricted cash award, and payments are released after UKSA accepts evidence that agreed milestones have been delivered. Any surplus may be lost unless alternative arrangements are agreed in advance. Build the budget around genuinely additional project costs, realistic milestones and evidence that can be produced on schedule.

Funding rates, match and subsidy control

Enterprises must account for match funding under the Research, Development and Innovation Streamlined Subsidy Scheme unless another permitted route applies. The published maximum intervention rates are 70% for a small enterprise’s feasibility study or industrial research and 45% for its experimental development. For medium enterprises the corresponding rates are 60% and 35%; for large enterprises they are 50% and 25%. Academic partners are funded at 80% of Full Economic Cost.

The scheme can provide a 15% uplift to enterprise subsidy ratios for qualifying collaboration between enterprises where at least one is an SME, or between an enterprise and one or more research and knowledge dissemination organisations with the right to publish their own research results. The academic partner remains funded at 80% of Full Economic Cost when an enterprise leads.

The definitions matter. UKSA describes a small enterprise using turnover below £10.2 million, balance-sheet total below £5.1 million and no more than 50 average employees; a medium enterprise uses thresholds of £36 million turnover, £18 million balance-sheet total and 250 employees. Two of the three conditions must be met. Applicants should calculate the correct category with their finance team and keep the underlying evidence available for due diligence.

The streamlined scheme also has cumulation rules. An enterprise may be ineligible if it has already received more than £3 million from public bodies in the last three years for the relevant project or substantially the same activity. Previous UKSA awards under the same scheme may affect eligibility. There is also a Minimum Financial Assistance route allowing up to £315,000 over a rolling three-fiscal-year period without match funding, subject to declarations and the remaining rules. Treat the funding classification as a substantive application task, not an administrative afterthought.

Application process and timeline

The optional expression-of-interest deadline was 7 August 2026. UKSA says the EOI was only for planning and assessor organisation, was not scored and is not the substantive application. As of 11 August 2026, the key live deadline is the outline proposal deadline: 23:59 on 21 August 2026. Outline proposals must be submitted through Flexigrant; email submissions will not be accepted.

The outline form asks four central questions: what the proposal is and how it aligns with the call and wider priorities; how innovative and technically feasible it is; who will deliver it; and what economic benefits and exploitation route may follow. Applicants must state the indicative grant request and attach letters of intent from named project partners. UKSA provides a naming convention for uploaded letters, support letters and diagrams, so use it consistently.

Only the strongest outline applicants move to Stage 2. UKSA expects to invite around 50 applicants to full proposal, then to select approximately 15–30 grants after detailed assessment and moderation. Full proposals are due by 23:59 on 12 November 2026. The full submission includes Part A for organisation, finance, work packages, milestones, risks and overheads; Part B with the detailed narrative; Part C, the National Security Questionnaire; and, where applicable, Part D for additional overheads, CVs, letters of intent and a marked-up Grant Funding Agreement.

The published timetable anticipates decisions on 8 February 2027 and project kick-off from 1 April 2027. Work should be planned to finish by 30 September 2029. A delayed start can be discussed where recruitment or matched funding makes it necessary, but the proposal should explain the constraint. Do not assume that a grant is committed before UKSA completes due diligence.

What to prepare before submitting the outline

Start with a one-page project logic model. Identify the current technical state, the specific uncertainty the project will resolve, the work packages that address it, the evidence each milestone will produce and the commercial or scientific decision that follows. This will make the narrative more concrete and expose gaps before the form is complete.

Prepare a concise customer and market case. Name the user or buyer category, describe the problem in operational terms, identify competing or substitute approaches and explain why your proposed improvement matters. Letters of support can help demonstrate demand, but do not use them as a substitute for a quantified route to exploitation. If your route depends on a future contract, test campaign, regulatory approval or mission schedule, state the dependency and show how the project plan manages it.

Build the budget from the milestones outward. Include staff, equipment, materials, testing, data, travel and partner costs only where they are directly tied to the proposed work. Distinguish eligible project costs from business-as-usual costs. Account for the match contribution, subsidy category, financial-year profile and cash-flow implications: UKSA says payments follow successful milestone review, so a recipient may need to fund costs before reimbursement.

Gather the evidence reviewers are likely to need. This can include prior test results, technical specifications, prototype performance, customer discovery, intellectual-property position, relevant CVs, partner capability and risk controls. Keep claims proportional to the evidence. A modest, well-measured baseline and a credible test plan are more useful than an ambitious claim that cannot be verified.

The lead must also think about security and licensing. The full application includes a National Security Questionnaire for the lead organisation. Successful applicants must engage with UKSA’s security team and provide a mitigation, response and recovery plan within six months of signing the Grant Funding Agreement. If the project involves licensable activity, the relevant UK Civil Aviation Authority permissions under the Space Industry Act 2018 or Outer Space Act 1986 must be obtained before that activity starts. Early contact with the CAA is sensible where licensing could affect the schedule.

How proposals are assessed

UKSA and independent assessors from academia, industry and government will review eligible proposals. The assessment considers alignment with the call, innovation, technical feasibility, delivery team, economic benefit, exploitation, project management, funding need and value for money. Reviewers will also consider the commitment of the lead organisation and the financial viability of the organisations involved.

A competitive proposal should make the reviewer’s decision easy. Use the call’s language where it accurately describes the work, but avoid vague claims. Explain exactly what is novel, why the proposed experiment or prototype is the right next step, how failure would be detected, and what successful delivery would enable. Show that the team has the authority, skills and partner access to deliver the work, rather than listing impressive names without responsibilities.

Additionality is especially important. UKSA requires the grant-funded activity to be something that would not happen, or would happen at reduced scale, speed or quality, without public support. Identify the financing gap directly. Explain what the grant changes and why private investment, customer revenue or existing budgets cannot cover the same work at the necessary point in time.

Common mistakes to avoid

The most serious mistakes are procedural. Missing the 21 August outline deadline, submitting by email, altering a required template or omitting a required partner letter can prevent assessment regardless of technical merit. Check the portal upload list before submission and keep a timestamped copy of every final document.

Do not use the outline to describe a completely different full proposal. UKSA may reject a full proposal if its budget is materially different from the outline budget. Set a defensible indicative cost now, and flag genuine uncertainty instead of inflating or minimising the request.

Avoid treating the grant range as a target. Ask for the amount required for the defined work, backed by a transparent cost model and milestones. Do not include routine product maintenance, ordinary business development or activity that would proceed from existing funds. Do not postpone subsidy-control checks until award stage.

Finally, protect confidential information. UKSA treats applications as Commercial in Confidence, but applicants remain responsible for marking sensitive material and for their own intellectual-property strategy. The call permits AI assistance but requires applicants to declare what tool was used and how; proposals must remain the applicants’ own original ideas, and substantive undeclared or inaccurate use can create serious risks. Keep commercially sensitive material out of unnecessary external tools and have the final application reviewed by the named organisation.

Frequently asked questions

Can an organisation apply after missing the expression-of-interest deadline?

Yes, based on the published guidance. The EOI was encouraged but optional, was not scored and was used for UKSA’s planning. The substantive Stage 1 requirement is the outline proposal through Flexigrant by 23:59 on 21 August 2026.

Can a non-UK organisation lead the application?

No. Funds must be requested by UK-based organisations. A non-UK organisation may be relevant as a collaborator where the call and project structure permit it, but the eligibility and responsibilities of every proposed partner should be checked in the official guidance before submission.

Is collaboration required?

No. A single UK-based organisation can apply if it has the capability to deliver the project. If named partners are included, letters of intent confirming their involvement are mandatory at outline stage.

Is the grant fully funded?

Usually not for enterprises. Match-funding rates depend on enterprise size and the classification of the work. Academic partners are funded at 80% of Full Economic Cost, while qualifying research, public-sector and charitable arrangements may have different treatment under the call’s subsidy-control section. Confirm the applicable rate rather than assuming the headline grant request equals the total project cost.

When does the money arrive?

NSIP operates on cost recovery. Payments are made after evidence shows that agreed milestones have been successfully delivered. Applicants should therefore model cash flow, reporting effort and the evidence needed to support claims.

Where is the official application information?

Read the official NSIP Call 3 announcement in full. It contains the scope, deadlines, assessment questions, subsidy-control rules, reporting obligations and links to the Flexigrant portal and call document pack. Direct questions about the call can be sent to the NSIP team at [email protected]; UKSA says it will not review draft applications in advance.

Official links and next steps

1. Confirm that the lead organisation is UK-based and that the project has a genuine space application.
2. Select Kick Starter or Major Projects based on the technical maturity and exploitation plan, not simply on the desired grant amount.
3. Coordinate internally so the organisation stays within its application limit for the chosen stream.
4. Build the outline around the four published questions, with a clear TRL progression, target user, delivery team, additionality case and indicative budget.
5. Obtain a signed letter of intent from every named project partner.
6. Submit the unaltered outline documentation through Flexigrant before 23:59 on 21 August 2026.
7. If invited to Stage 2, prepare the full Part A, Part B, Part C and any applicable supporting documents for the 12 November deadline.

This opportunity is most suitable for a UK organisation with a technically credible space R&D project, an identifiable route to adoption and enough financial capacity to manage matched costs and milestone-based reimbursement. Teams that can make those three points specific still have a short but usable window to submit the outline proposal for a project beginning in 2027.