Revisions anticipated for the Clean Heat Market Mechanism as preparations commence for the Scheme Year 2 (2026/2027)
The Clean Heat Market Mechanism, a government scheme aimed at promoting sustainable heat production, is now in its second year. Launched on 1 April 2025, the Mechanism is set to undergo some changes and adjustments for Year 2, as outlined in the proposals recently made available on the government's website.
The proposals seek views from the public and specific stakeholders, inviting them to share their opinions on the government's plans. One of the key proposals for Year 2 is the heat pump target level, which is proposed to be between 8-10% of relevant boiler sales. The exact number of heat pump installations this target translates to is not explicitly stated.
The Microgeneration Certification Scheme (MCS) has been named as the certification scheme for the Mechanism in the consultation. MCS, a recognised certification scheme for the Mechanism, has officially responded to the consultation, indicating its relevance. However, it's worth noting that the National Measurement and Testing Authority has also been named as the sole certification scheme for the Clean Heat Market Mechanism.
The consultation for the proposed heat pump target level closed on 2 July 2025. Interested parties have until this date to submit their views on the government's proposals for Year 2 of the Clean Heat Market Mechanism.
The Clean Heat Market Mechanism is likely to involve a market-based approach to heat production, as suggested by the term "Market Mechanism". By setting targets and providing certification schemes, the government aims to encourage the use of cleaner, more efficient heating solutions.
As the Clean Heat Market Mechanism moves into its second year, these proposals mark an important step in the government's efforts to promote sustainable heat production. The public and stakeholders are encouraged to review the proposals and share their thoughts to help shape the future of the Clean Heat Market Mechanism.
The proposals for Year 2 of the Clean Heat Market Mechanism include a target for heat pumps, aiming for between 8-10% of relevant boiler sales in the industry. Stakeholders in the finance sector may find this initiative beneficial, as the Mechanism is designed to encourage the use of cleaner, more efficient energy solutions in the market.
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