STTR Phase II — Department of Energy
Department of Energy (DOE)
Up to $1.1M (STTR Phase II)
DOE STTR scale-up for SB + research partners
DOE STTR Phase II provides up to $1,100,000 over 24 months for small businesses partnered with a US research institution that successfully completed a DOE STTR Phase I. Like DOE SBIR Phase II, it is invitation-based — Phase I awardees are invited to apply rather than competing in an open solicitation. Funds full prototype development and commercialization readiness. The mandatory research institution partnership (at least 30% of work) continues through Phase II. Non-dilutive federal grant submitted via Grants.gov. NOTE: The SBIR/STTR reauthorization lapsed October 1, 2025 and was restored April 13, 2026 with reauthorization through September 30, 2031. The 2026 reauthorization added a mandatory foreign national screening requirement for all applicants.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $1,100,000
- Realistic amount
- DOE STTR Phase II awards typically cluster in the $800K–$1.1M range. Approximately $240,000–$330,000 of the Phase II bud…
- Deadline
- Invitation-only — DOE invites STTR Phase I awardees to apply for Phase II approximately 4–8 months before the end of Phase I. No open competition. Phase II FOAs are published but accessible only to invited Phase I awardees.
- Status
- between-intakes
- States
- Nationwide
- Payment model
- advance
Who qualifies
- Must be a current or recent DOE STTR Phase I awardee — Phase II is available only to companies that received a DOE STTR Phase I award and demonstrated satisfactory technical progress
- Research institution partner from Phase I must continue as the Phase II partner (or a new qualified institution must be approved in advance by the DOE program manager)
- Research institution must perform at least 30% of the Phase II work in dollar terms — the 30% floor is a statutory requirement carried forward from Phase I
- Small business must perform at least 40% of the Phase II work directly
- For-profit US small business with 500 or fewer employees including affiliates
- More than 50% owned and controlled by US citizens or permanent resident aliens
- Mandatory foreign national screening: the April 2026 reauthorization requires all applicants to disclose foreign ownership, foreign control, or foreign influence (FOCI) — new compliance requirement effective for all awards issued after April 13, 2026
- Active SAM.gov registration with valid UEI required
- Phase I final report submitted and accepted before Phase II award start
- No cost-sharing required
Hard requirements
- Must be incorporated
- 51%+ US ownership required
- Requires a prior Phase I award
- Requires a research-institution partner
What it covers
Eligible expenses
- Salaries and wages for small business PI and technical staff performing Phase II R&D
- Fringe benefits on qualifying salaries
- Materials, components, and supplies consumed in prototype development and R&D
- Equipment required for Phase II work
- Research institution subcontract (must represent at least 30% of total Phase II award)
- Other subcontractor costs (total non-SBC work must stay within statutory limits)
- Consultant fees for specialized expertise
- Travel for DOE facility visits, lab access, or commercialization activities
- Indirect (overhead) costs at negotiated or de minimis rates for both the SBC and the research institution
- SBIR fee on direct and indirect costs
Ineligible expenses
- Work performed outside the United States without prior DOE approval
- Lobbying or political activities
- Entertainment, alcohol, or personal expenses
- Pre-award costs
- Research institution subcontract below 30% of total Phase II award (statutory floor)
- Marketing, advertising, or commercial sales activities beyond what is specified in the approved commercialization plan
- Costs unallowable under OMB Uniform Guidance and 2 CFR Part 200
How to apply
-
1
Deliver successful Phase I and receive Phase II invitation
DOE STTR Phase II eligibility begins with satisfactory completion of Phase I R&D and submission of an accepted Phase I final report. Your DOE program manager will issue a Phase II invitation letter if Phase I results demonstrate adequate feasibility. Not all Phase I awardees receive Phase II invitations — program budget constraints and technical progress both factor into the invitation decision. Keep the program manager actively informed throughout Phase I.
~20 hrs
-
2
Update the research institution agreement for Phase II scope
The subcontract agreement between the small business and the research institution from Phase I must be updated or replaced for Phase II. Phase II scope, IP rights, work percentages (30% floor), publication rights, and export control terms must be renegotiated or confirmed as carrying forward. University Technology Transfer Offices (TTOs) typically require 4–6 weeks to review and execute subcontract modifications — start this process immediately upon receiving the Phase II invitation.
~15 hrs
-
3
Prepare the Phase II technical and commercialization proposal
DOE STTR Phase II proposals include: (1) a Technical Narrative (typically 20–25 pages) describing Phase I results and the Phase II R&D plan leading to a prototype or product; (2) a Commercialization Plan articulating the path from Phase II to market with identified energy sector customers; (3) a detailed budget covering both the small business and the research institution subcontract. The commercialization plan must demonstrate understanding of the DOE technology roadmap and the commercial energy market that will adopt the technology.
~80 hrs
-
4
Submit via Grants.gov Workspace
Assemble the complete application in Grants.gov Workspace and submit before the FOA deadline. The package includes the Technical Narrative, Commercialization Plan, budget and budget narrative, key personnel CVs (for both SBC and research institution team members), and updated subcontract documentation. Allow 2–3 business days before the deadline for Grants.gov processing.
~8 hrs
-
5
DOE merit review and award notification
DOE conducts program officer review plus external merit review for Phase II applications. Review criteria include technical quality of Phase I results, credibility of Phase II approach, and strength of commercialization plan. Award notifications typically arrive 6–8 months after the Phase II proposal deadline. DOE Phase II awards start on a fixed schedule tied to the FOA cycle.
~5 hrs
SBIR / STTR details
SBIR phase amounts
| Phase | Max award | Duration |
|---|---|---|
| Phase1 | $275,000 | 12 months |
| Phase2 | $1,100,000 | 24 months |
NAICS codes: 541715, 541714, 541330, 221113, 221122, 325412
The 30% research institution subcontract floor is a budget planning constraint, not an afterthought. Build the Phase II budget from the subcontract up — overestimating the institution's role reduces the small business's operational budget; underestimating fails the statutory floor test.
Deadline & timing
DOE STTR Phase II follows the same invitation model as DOE SBIR Phase II — Phase I awardees receive an invitation letter from their DOE program manager 4–8 months before Phase I end. Phase II applications are submitted through Grants.gov using the current DOE STTR Phase II FOA (e.g., DE-FOA-0003462 series for FY2025). The research institution subcontract agreement must remain in place and updated for Phase II scope — new or revised subcontract terms require institutional re-approval before Phase II submission.
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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.