As energy bills rise and the climate crisis intensifies, indsurty experts are making use of powerful new tools to battle these issues. In a major boost to the UK’s clean energy future, ten British innovations involving Artificial Intelligence (AI) have been selected to compete for a £1 million prize. These cutting-edge projects focus on AI improving energy efficiency, aiming to reduce household costs and carbon emissions.
What Is The Manchester Prize?
The Manchester Prize is a multi-million-pound challenge from the UK’s Department for Science, Innovation and Technology. Designed to spotlight breakthroughs that use AI for public good, the multi-million-pound prize enters its second year with a focus on energy efficiency, climate resilience and supporting the UK’s journey to net zero.
Each of the ten finalists has already received £100,000 in seed funding and £60,000 in computing credits to develop their ideas. On top of financial backing, they benefit from mentoring, investor-readiness support, and technical guidance. The competition will culminate in spring 2026, when one team will take home the £1 million grand prize.
Making Homes Smarter, Warmer and Greener
Some of the most exciting finalists are tackling how AI can directly help families with their energy use. One project has developed smart external panels that convert a building’s outer walls into a radiant heat source. These panels cause the brickwork to act like a radiator, warming buildings from the outside in. This breakthrough could pave the way for easier and more cost-effective installation of heat pumps, even in older homes.
Another team is deploying AI-powered drones to conduct large-scale thermal scans of neighbourhoods. By identifying homes with significant heat loss, local authorities can better target insulation upgrades – potentially saving families hundreds of pounds each year while significantly reducing energy waste.
Smarter Systems for a Greener Grid
The scope of innovation extends beyond individual homes. Several finalists are focused on making the wider energy system more intelligent and responsive. One solution uses AI to balance supply and demand across the electricity grid, a crucial need as more intermittent renewable sources, like solar and wind, are integrated. Meanwhile, another project is bringing AI-driven efficiency to the transport sector. By optimising delivery routes and vehicle deployment, it aims to reduce fuel use and cut emissions in logistics – a vital contributor to the UK’s decarbonisation goals.
Why Energy-Efficient AI Matters
The Manchester Prize is part of the UK’s bigger plan to use AI for the public good – helping society and the environment, not just businesses. By supporting these projects, the government is showing that AI can be a powerful tool to tackle real-world problems like high energy costs and climate change.
These ten finalists are more than just competitors for a prize. Together, they show what’s possible when smart technology is used to make everyday life better. Lower bills, warmer homes, and a cleaner planet don’t have to be separate goals – they can all be achieved with the right ideas and the right support.
