Since 1st April 2025, the UK heating industry has entered a new regulatory phase with the introduction of the Clean Heat Market Mechanism (CHMM). The CHMM is a scheme designed to place heat pumps at the heart of the low-carbon heating transition.
The scheme targets boiler manufacturers, requiring them to support heat pump installations in proportion to the fossil fuel boilers they sell.
For installers, this may lead to increased demand for heat pump work, new product offerings, and greater engagement from manufacturers. So, what’s changing, and what do you need to know now?
What is the Clean Heat Market Mechanism?
The Clean Heat Market Mechanism is a UK wide government scheme designed to shift the market away from fossil fuel boilers and toward low-carbon heating, mainly electric heat pumps.
In simple terms:
- Manufacturers who sell a high volume of gas or oil boilers in the UK must also sell a certain number of heat pumps.
- If they don’t meet these targets, they could face financial penalties or must buy “credits” from others who have exceeded their heat pump targets.
The Drive for Cleaner Heating
The initiative supports the UK’s net zero goals. Heating our homes currently accounts for around 17% of UK carbon emissions* (primarily from gas boilers). The government aims to cut these emissions by accelerating the shift to cleaner alternatives like heat pumps.
The Clean Heat Market Mechanism puts pressure on manufacturers to increase the supply of heat pumps and encourages support for installers scaling up low-carbon installations.
Who Does This Apply To?
The CHMM applies to:
- Manufacturers become obligated if they sell a significant volume of fossil fuel boilers in the UK, for example, more than 20,000 units a year. Those selling slightly less may have reduced obligations or reporting requirements.
- Heat pump only brands aren’t required to meet CHMM targets but can generate tradable credits if they install eligible heat pumps.
There are no direct compliance or reporting requirements for installers under the CHMM. The obligations apply to manufacturers, not installation businesses. However, as a heat pump installer, you may see more opportunities arise as manufacturers seek to increase their heat pump sales, support installations, and meet targets.
Want to Learn More?
Read more about the Clean Market Mechanism here: https://www.gov.uk/guidance/clean-heat-market-mechanism-who-it-applies-to-annual-tasks
Information sourced from:
* https://www.gov.uk/government/publications/net-zero-strategy/3-reducing-emissions-across-the-economy
https://www.gov.uk/guidance/clean-heat-market-mechanism-who-it-applies-to-annual-tasks