What Is the Clean Heat Market Mechanism (CHMM)?
The shift towards low-carbon heating systems, such as air source and ground source heat pumps, is being accelerated through a UK government policy known as the Clean Heat Market Mechanism (CHMM).
Its goal is to drive investment and innovation in the heating industry and reduce the UK’s carbon emissions.
How Does the Clean Heat Market Mechanism Work?
The CHMM is a policy that requires boiler manufacturers to increase the proportion of heat pumps they sell. If they fail to meet government-set targets, they may face financial penalties. This regulation intends to make heat pumps more accessible and affordable for consumers by encouraging mass adoption, which reduces costs over time.
Originally set to launch in April 2024, the scheme was postponed to April 2025 to give manufacturers time to adapt and prevent sudden, unfair price increases for consumers.
2025/26 Target:
- 6% of total boiler sales must come from heat pumps.
Long-Term Objectives
The CHMM supports broader government goals, including:
- Reducing home heating-related carbon emissions.
- Helping achieve net-zero emissions by 2050.
- Increasing the affordability and availability of heat pumps.
- Reaching 600,000 heat pump installations annually by 2028.
As the policy takes effect, consumers can expect:
- Lower installation costs for heat pumps.
- A wider range of heat pump models to choose from.
- Increased competition and innovation in the market.
What is the Cause of the Clean Heat Market Mechanism Delay?
The initial April 2024 CHMM launch included a target of 4% of boiler sales from heat pumps, raising concerns from boiler manufacturers that the requirements would drive gas boiler price increases.
An investigation later revealed that these price hikes were business decisions made by the manufacturers and not directly caused by the CHMM or any government-imposed taxes. To avoid these immediate costs passing to consumers, the government postponed the policy to 2025.
But most importantly, despite this delay, the goals of the CHMM remain unchanged.
What Are the Legal Requirements for Manufacturers?
Starting in 2025, manufacturers must ensure that at least 6% of their UK boiler sales come from heat pumps. However, over the next few years to come, this figure will probably rise.
Key points:
- Non-compliance will result in financial penalties for the manufacturers.
- The policy incentivises manufacturers to make heat pumps more affordable and widely available.
Concerns About Boiler Prices
Some manufacturers—such as Worcester Bosch, Baxi, and Vaillant—have raised boiler prices by around £120, blaming the CHMM. However, the CHMM does not impose any direct taxes or mandatory price increases. Price adjustments are made at the discretion of manufacturers and are not part of government policy.
What Does This Mean for Heat Pump Availability?
As manufacturers adapt to meet CHMM targets, consumers can expect:
- A greater variety of heat pump models.
- Growth in hybrid heat pump options.
- Technological improvements and cost advantages should lead to lower prices over time.
In short, now is an ideal time to consider switching to a heat pump.
Read our heat pump insights here, featuring reviews and real customer voices: Air Source Heat Pump Reviews
