• New UK Government consultation plans to raise the 2026/27 heat pump target for boiler manufacturers to 8-10% of relevant sales.
  • Financial penalties for missing heat pump targets remain £500 per unit, with 35% target carryover flexibility for manufacturers.
  • Heat pumps, up to 400% efficient, can significantly cut emissions and energy costs, supporting the UK’s decarbonisation goals.

New UK Government consultation opens to set higher heat pump installation target 

The UK Government has announced a new consultation on the second year of the Clean Heat Market Mechanism (CHMM). Having begun on May 7, 2025, the consultation sets a higher target for heat pump sales by boiler manufacturers.

The Department for Energy Security and Net Zero is seeking public feedback on these changes. One of the key proposals is to increase the heat pump target to 8-10% of relevant boiler sales for the year 2026/27. This marks a significant jump from the current target of 6% for 2025/26.

In addition, the consultation proposes naming the Microgeneration Certification Scheme (MCS) as the sole certification body for the CHMM. This move aims to streamline the certification process and ensure consistent standards across the scheme.

New UK Government consultation plans to raise the 2026/27 heat pump target

However, there are no proposed changes to the financial penalties for missing targets. Manufacturers will still face a £500 payment for each missed heat pump sale. The consultation remains open for public input until July 2nd, 2025.

How important is this?

The CHMM is a government initiative aimed at boosting heat pump adoption. It requires manufacturers to sell or acquire credits for a growing number of heat pumps compared to boiler sales. This policy supports the UK’s drive to reduce carbon emissions from homes.

Heating accounts for around 17% of the UK’s carbon emissions. Unfortunately, British homes are among the least energy-efficient in Europe. Traditional gas boilers are around 94% efficient. In contrast, heat pumps can achieve 300-400% efficiency. This makes them a much cleaner option.

Supporting the transition

The CHMM offers flexibility to help manufacturers adapt. They can carry forward up to 35% of their annual target if they fall short. They can also purchase credits from other manufacturers to meet requirements.

With consumer interest growing and financial support available, the government believes the impact on manufacturers will be manageable. The consultation aims to ensure that the scheme remains fair and effective as it enters its second year.