The objective of the C-LEO programme is to future-proof the UK’s competitive edge in the high-value satellite communication sector by enabling its diversification into the high-growth and strategically important high-volume constellation market, including:
- to accelerate the commercialisation and rapid industrialisation of key technologies and industry capabilities necessary for UK firms to meet demand for high-volume constellation production
- to enable UK firms to secure a significant and sustained share of the high-value contracts due in the next 4 to 5 years that will drive the future sector supply chain
- to develop the UK’s on-shore industrial capabilities in R&D-intensive activities of the constellation value chain
- to catalyse private sector investment in UK high-volume constellation sector by signalling the UK’s commitment to the long-term growth of the satellite communication sector
The satellite communications sector is undergoing rapid transformation, driven by the emergence of high-volume constellations and the need for scalable, resilient infrastructure. To remain competitive, UK industry must accelerate the development and industrialisation of key technologies such as regenerative processing, networking and routing, active antennas, optical links, and advanced user terminals.
To ensure the UK can seize these strategic opportunities, the UK Space Agency (Department for Science, Innovation and Technology) is seeking proposals that will drive innovation in satellite communications and strengthen the UK’s position in the global constellation supply chain.
This is a defined grants Call, with up to £42,000,000 of UK Space Agency funding being made available. The UK Space Agency is seeking to award funding of around £4 million to £25 million per project to a handful of projects through this third call.
Funding is available for projects that focus on one or more of the following key technology areas:
- On-Board (Regenerative) Processing
- Active Antennas
- Optical Links
- Networking and Routing
- User Terminals
This funding will be targeted towards proposals with technology readiness levels (TRL) of between 4 and 6, with the aim being to raise the proposal to TRL 7 and above. The funding of higher TRL proposals will be considered.
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The lead applicant must be a UK-registered entity and must be registered with Companies House. All project partners must also be UK-based organisations, unless otherwise agreed with the UK Space Agency.
Projects can be collaborative.
Organisations may only submit one application as the lead organisation. Organisations may participate as a partner in multiple applications.
Please note in this call that only 30% of the total grant funding can be awarded to research organisations.
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The UK Space Agency is seeking to award funding of around £4 million to £25 million per project. Projects must include a credible level of match funding in line with UK Subsidy Control requirements. Applicants must review the matched funding guidance and ensure their funding request meets the relevant funding rates. Applications that do not meet these requirements or provide sufficient evidence will be considered ineligible and will therefore not be assessed.
Subsidies given under these categories are regarded as experimental development and subject to maximum subsidy ratios (ranging from 25% for large businesses to 45% for small businesses). Enterprises may receive a 15% uplift to the subsidy ratios where the project involves collaboration between enterprises, where at least one of the enterprises is an SME, or between an enterprise and one or more research and knowledge dissemination organisation, which must have the right to publish its own research results.
Universities undertaking non-economic research activity will be funded at 80% of full economic cost. All other research organisations will be funded at 100% of eligible costs. Please note in this call that only 30% of the total grant funding can be awarded to research organisations.
Awarded projects will start from Calendar Q1/Q2 2027 and must have fully completed by 31st March 2030.
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This funding will be targeted towards proposals with technology readiness levels (TRL) of between 4 and 6, with the aim being to raise the proposal to TRL 7 and above. The funding of higher TRL proposals will be considered.
By the end of the funded project, there must be a tangible improvement in the TRL of the technology or a demonstration of advancement in approach (engineering method, technical competence etc) of the funded project. The C-LEO programme follows ESA’s definitions of Technology Readiness Levels. More information can be found here.
Funding is available for projects that focus on one or more of the following key technology areas:
- On-Board (Regenerative) Processing
- Active Antennas
- Optical Links
- Networking and Routing
- User Terminals
Proposals should present a clear route to market, supported by robust business cases and credible plans for industrialisation. Applicants are expected to demonstrate strong value for money, alignment with UKSA strategic objectives, and the potential to deliver measurable economic benefits. All projects must comply with UK government policy on spectrum use and regulatory requirements.
DSIT will be collecting performance metrics to demonstrate success of the projects against critical factors. Details of the expected metrics will be communicated to successful applicants and finalised into the Grant Funding Agreement annexes.
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There will be an online webinar outlining the application process and to provide an opportunity for questions on Wednesday 29th July 2026. To register your interest, please click here or email UKSA.Satcoms@dsit.gov.uk Any questions asked during the Webinar will be published in “Guidance Note A – FAQs”.
There will be an in-person Consortium Building Event in Harwell on Thursday 6th August 2026. To register your interest and to find out more information, please visit the website here or email UKSA.Satcoms@dsit.gov.uk. Any Q&A asked during the Event will be published in “Guidance Note A – FAQs”. Access to the event will be arranged on a first come first serve basis due to capacity constraints.
Deadline for questions submitted to UK Space Agency for Stage One: Monday 24th August 2026.
Latest UKSA will respond to questions submitted for Stage One (answers provided via “Guidance Note A: FAQS”): Monday 31st August 2026.
Stage One Deadline: Monday 7th September 2026, 12:00pm midday (GMT)
If you would like help to find a collaboration partner, contact Innovate UK Business Connect’s Space team.