The Association wants to make members aware of a new Ofwat-funded innovation competition that could support R&D and real-world trials of bathroom-related water efficiency solutions.

Water Efficiency Lab 1 (WEL 1) is part of Ofwat’s £100m Water Efficiency Fund. Up to £5m is available in this first round, with individual projects typically seeking £150k–£1.5m in funding (smaller digital projects from £100k).

It was officially launched on November 25, and they held a launch webinar on December 3, providing greater detail of the fund. The webinar recording, slides and transcript are on the official website. 

What is the Water Efficiency Lab?

• Funded by Ofwat and delivered by Challenge Works with partners.
• Aimed at reducing water demand in England and Wales, alongside smart metering, tariffs and other long-term measures.
• WEL 1 is the first of several innovation competitions running to 2030.

This round is themed “Actionable Insights” – solutions that turn water-use data into clear, tailored information that actually changes behaviour for households and/or businesses.

Why this matters for the bathroom sector

The bathroom is where a large share of domestic water use happens. WEL 1 is looking for solutions that:

• Help people see how, when and where they use water (including at fixture level – showers, taps, WCs, baths, etc.).
• Provide simple, personalised insights (e.g. “your shower use is 20% above similar households”) not just raw meter data.
• Deliver nudges and tools that lead to sustained reductions in consumption, not one-off savings.
• Work both for smart-metered properties and for hard-to-meter or unmetered homes and premises.

What kind of projects are they looking for?

Examples given include (but are not limited to):

• Enhancements to existing or planned customer portals that turn smart meter data into more meaningful, real-time insights and nudges.
• Systems that provide fixture-level monitoring of water use and translate this into simple actions for users.
• DIY sensor kits for homes or businesses that can be deployed at scale.
• Alternative ways of monitoring use in hard-to-meter properties.
• Tools that combine leak detection with behaviour-change feedback.
• Platforms that bring together multiple data sources (e.g. product-level data, meter data, energy data) into a single customer experience.

Projects can be at different stages of maturity, from piloting near-market products in real homes/businesses, to testing more experimental approaches where there is a clear route to scale.

Funding and match requirements

• WEL can fund up to 90% of total eligible project costs.
• Entrants must provide at least 10% match funding:
  • For non-water-company organisations (including manufacturers), this can be cash and/or in-kind (e.g. staff time, use of facilities, products, software).
• Typical WEL contribution: £150k–£1.5m
  • Smaller, mainly digital projects can apply for £100k–£150k with a maximum 12-month project duration.

Importantly, successful entrants retain their intellectual property as there is no requirement to hand IP over to Ofwat. This is essentially subsidised R&D, piloting and evidence-gathering.

Who can apply?

The lead organisation must:

• Be a UK-incorporated entity (company, charity, university, non-profit, etc.) with a UK business bank account.
• Hold or secure the necessary IP rights for the proposed solution.
• Be able to meet due diligence requirements.

Entries from consortia are encouraged. Bathroom manufacturers could:

• Lead a consortium – for example, with a water company, retailer, tech partner or university.
• Join as a delivery partner in a consortium led by another organisation.

Timelines and process

Key dates for this round:

• Entries open: 25 November 2025
• Networking event (London): 15 January 2026
• Entries close: 10 March 2026
• Winners announced: mid-June 2026

Applications are submitted online via the competition platform and are assessed against four criteria:

1. Impact on water demand and behaviour change
2. Innovation / additionality
3. Team capability and deliverability
4. Adoption and implementation at scale

More detailed information is available on the WEL website, particularly in the WEL 1 guidance document.