Government is consulting on Clean Heat Market Mechanism Year 2

The government is consulting on a proposed target level for Year 2 of the Clean Heat Market Mechanism (CHMM). It’s also proposing to name MCS as its sole certification scheme and seeking views on other aspects of the scheme that it may wish to consider in the future.

The Clean Heat Market Mechanism consultation wants to hear a range of views in the heating and energy industry, including those from the public, consumer groups and non-governmental organisations.

During this first year of the CHMM, major boiler manufacturers must acquire credits for heat pump sales in proportion to their gas boiler sales. Currently that target is 6% for gas boiler sales over 20,000 and 6% for oil boilers sales over 1,000.

In year two, the proposed target will be 8-10% of relevant boiler sales, anticipated to be equivalent to around 90,000-130,000 heat pump credits but dependent on gas boiler sales. The government reckons the heat pump market will grow enough next year to support this target.

The government is also proposing to mandate MCS as the sole certification scheme for the Clean Heat Market Mechanism, and to remove the option for multiple certification schemes to certify installations.

You can read the consultation here and respond by 2 July 2025.