SBIR Phase II — Department of Energy
Department of Energy (DOE)
Up to $1.6M (Phase II)
DOE R&D scale-up for Phase I grads
DOE Phase II provides up to $1,600,000 over 24 months for small businesses that successfully completed a DOE SBIR Phase I and demonstrated feasibility. Phase II is not a separate competition — DOE invites Phase I awardees to apply for Phase II based on Phase I performance. It funds full prototype development, scale-up, and commercialization readiness. Non-dilutive grant submitted via Grants.gov.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $1,100,000 – $1,600,000
- Realistic amount
- DOE Phase II awards typically cluster in the $1.1M–$1.6M range over 24 months. Some awards include DOE Technology Commer…
- Deadline
- Invitation-only — DOE invites Phase I awardees to submit Phase II applications approximately 6 months before their Phase I ends. No open competition; timing depends on Phase I award cycle.
- Status
- between-intakes
- States
- Nationwide
- Payment model
- advance
Who qualifies
- Must be a current or recent DOE SBIR Phase I awardee — Phase II is only available to companies that received a DOE Phase I award and demonstrated satisfactory technical progress
- Same small business eligibility as Phase I: for-profit, US-incorporated, ≤500 employees including affiliates
- More than 50% owned and controlled by US citizens or permanent resident aliens
- Principal Investigator must be primarily employed (>50% of working time) at the applicant firm throughout Phase II
- Active SAM.gov registration and SBIR Company Registry membership required
- Phase II is an invitation — applicants cannot self-nominate; DOE program manager must issue an invitation based on Phase I performance review
- No cost-sharing required for Phase II (though DOE Technology Commercialization Fund supplemental matching is encouraged)
Hard requirements
- Must be incorporated
- 51%+ US ownership required
- Requires a prior Phase I award
What it covers
Eligible expenses
- Salaries, wages, and fringe benefits for R&D personnel including the PI, co-investigators, engineers, and technicians
- Materials and components for prototype development and testing
- Equipment necessary for the Phase II research (major equipment requires budget justification and prior approval)
- Subcontractor costs for specialized research, testing, or manufacturing services (33% of total award limit; majority of work must be performed by the small business)
- Consultant fees for technical, regulatory, or commercialization expertise
- Travel related to the research including technology transfer meetings and DOE review meetings
- Patent application and IP protection costs directly related to Phase II innovations
- Other direct costs: lab fees, testing services, cloud computing for R&D
- Indirect costs at the applicant's negotiated or de minimis rate
Ineligible expenses
- Construction or renovation of facilities
- Fundraising or investor relations activities
- Lobbying or political activities
- Costs incurred before the Notice of Award date
- Subcontract costs exceeding 33% of total award without prior written approval from DOE
- Entertainment, alcohol, or personal expenses
- Work performed outside the United States without prior DOE approval
How to apply
-
1
Complete Phase I and achieve satisfactory technical progress
The path to Phase II begins with Phase I performance. Submit all required Phase I technical reports and final report on schedule. DOE program managers evaluate Phase I feasibility results and commercialization progress before issuing a Phase II invitation. A strong final report with clear prototype roadmap increases Phase II invitation likelihood.
~30 hrs
-
2
Receive Phase II invitation and confirm eligibility
DOE program managers issue Phase II invitation letters to Phase I awardees whose work demonstrated sufficient feasibility and commercialization potential. Upon receiving the invitation, confirm your SAM.gov registration remains active and your company still meets the small business size standards.
~2 hrs
-
3
Develop the Phase II technical proposal
Phase II proposals are longer and more detailed than Phase I — typically 40–60 pages. Address: (a) Phase I summary and results, (b) Phase II objectives and technical approach with a full research plan, (c) milestones and deliverables schedule, (d) expanded Commercialization Plan (3–5 pages required, must include identified customers, partners, market analysis, IP strategy, and manufacturing/deployment plan).
~120 hrs
-
4
Explore DOE TCF supplemental matching
DOE encourages Phase II recipients to leverage the Technology Commercialization Fund (TCF) program, which allows DOE national labs or industry partners to contribute matching funds alongside the Phase II award. Contact your program manager about whether your topic area has a TCF vehicle. Adding matched funding strengthens the commercialization narrative during review.
~10 hrs
-
5
Submit via Grants.gov and manage the award
Assemble the Phase II package in Grants.gov Workspace and submit before the FOA deadline. After award, Phase II is managed through quarterly financial reports, annual Research Performance Progress Reports (RPPRs), and a final report. DOE program managers conduct site visits for some Phase II projects — plan for 1–2 per year.
~20 hrs
SBIR / STTR details
SBIR phase amounts
| Phase | Max award | Duration |
|---|---|---|
| Phase1 | $200,000 | 6–12 months |
| Phase2 | $1,600,000 | 24 months |
NAICS codes: 541715, 541714, 541330, 221113, 221122, 325412
Phase II success is built during Phase I — maintain frequent communication with your DOE program manager, deliver results early, and include a draft commercialization roadmap in your Phase I final report.
Deadline & timing
DOE Phase II is not a publicly open solicitation. Phase I awardees receive a Phase II invitation letter from their DOE program manager 4–8 months before the end of Phase I performance. The Phase II application uses a simplified SF-424 package submitted through Grants.gov. DOE Phase II solicitations are published as FOAs (e.g., DE-FOA-0003462 for FY2025 Phase II Release 1) but access is effectively gated by Phase I award status. FY2025 Phase II Release 1 had a December 3, 2024 application deadline with awards expected August 2025.
Programs that stack well
- Research & Development Tax Credit (Section 41)
- SBIR Phase I — Department of Energy
- NIST Manufacturing Extension Partnership (MEP)
- Doe Technology Commercialization Fund
- Sbir Phase 3 Commercialization
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.