Clean heat market mechanism
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
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
Updates to this page
Last updated 14 March 2024 + show all updates
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Added link to an addendum to this consultation inviting views on an adjustment to the scheme introduction date.
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Government response published.
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Clean heat market mechanism impact assessment published
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First published.