The UK government has announced that the launch of the Clean Heat Market Mechanism (CHMM) will be postponed to April 1, 2025. This decision follows a focused consultation, which sought stakeholder feedback on the proposed delay.
The CHMM is designed to facilitate the transition to low-carbon heating solutions, particularly heat pumps, as part of the government’s broader strategy to decarbonise home heating and enhance energy security. The initial scheme was set to commence in April 2024.
The government’s response to stakeholder feedback includes two key adjustments to the scheme’s design. First, the payment-in-lieu for each missing credit will be reduced from £3,000 to £500 for the first year. Second, the assessment period for boiler sales, which will inform the obligations under the scheme, will now run from April 1, 2025, to March 31, 2026, instead of the previous January to December timeframe.
In total, 42 responses were received during the consultation, which included contributions from industry professionals, trade bodies, and members of the public. Approximately half of the respondents expressed opposition to the delay, preferring the original launch date.
The government says that the CHMM is essential for encouraging investment and innovation in the heat pump market, which will ultimately support the creation of skilled, low-carbon jobs. It aims to establish a competitive supply chain for heat pump manufacturing, promoting affordability and accessibility for consumers.
Looking ahead, the government plans to consult further on targets for the second year of the scheme and other potential changes in 2025.
