Consultation outcome

Clean heat market mechanism

This was published under the 2022 to 2024 Sunak Conservative government
This consultation has concluded

Read the full outcome

Detail of outcome

Update: 14 March 2024

Proposal to adjust scheme start date

As an addendum to this government response, we’re inviting views on proposals to adjust the date of introduction of the Clean Heat Market Mechanism scheme to 1 April 2025.

Please respond by 9 May 2024.

The government response provides a summary of the responses received to the consultation, and our decisions about the final design of the Clean Heat Market Mechanism scheme ahead of its launch in 2024.

The consultation set out proposals for the introduction of a market-based mechanism to support the development of the UK market for low-carbon electric heat pumps. Having considered the responses, we have made a number of adjustments to details of the scheme’s design, primarily to offer additional flexibility to obligated parties. The response explains those adjustments and confirms that the scheme will be administered by the Environment Agency.

We will proceed to introduce scheme regulations to Parliament in line with the design parameters set out in the consultation response, in advance of the start of the first scheme year in April 2024.

Detail of feedback received

We received 73 responses to the consultation from a diverse range of stakeholders, including:

  • heating industry organisations
  • energy supply and energy network organisations
  • representative and trade associations
  • standards bodies and non-governmental organisations
  • members of the public

Original consultation

Summary

We're seeking views on the design of a market-based mechanism to support the development of the market in low-carbon electric heat pumps.

This consultation ran from
to

Consultation description

This consultation sets out policy proposals and invites stakeholder views on the introduction of a market-based mechanism to support the development of the UK market for low-carbon electric heat pumps, as a core part of the government’s plans to reduce energy demand and gas use in heating buildings.

This proposed mechanism will create a market incentive to grow the numbers of heat pumps installed in existing premises each year, providing industry with a clear, long-term policy framework for investment and innovation.

In this consultation, we’re seeking views on a range of design features of the planned scheme, including proposals for:

  • scheme targets, technologies in scope and weightings for the early years of the scheme
  • credit trading within the scheme
  • the collection, handling and use of the data required for the scheme
  • scheme administration, compliance and enforcement

We’re interested in views from industry, both those who will be directly in scope of the obligation and those who will not, as well as from wider organisations and individuals with relevant interests or expertise.

Read the consultation privacy notice.

Documents

Clean heat market mechanism

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Clean heat market mechanism impact assessment

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Updates to this page

Published 30 March 2023
Last updated 14 March 2024 + show all updates
  1. Added link to an addendum to this consultation inviting views on an adjustment to the scheme introduction date.

  2. Government response published.

  3. Clean heat market mechanism impact assessment published

  4. First published.

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