Heat Pump Policy Gets Mixed Reviews After Delay Announcement

The UK government's decision to postpone the Clean Heat Market Mechanism (CHMM) has sparked mixed reactions within the heating industry.

Delayed Push for Heat Pumps

The CHMM, originally planned for April 2024, is now set to launch in April 2025. This initiative aims to incentivize heat pump adoption by penalizing gas and oil boiler manufacturers if their heat pump sales fall below a certain percentage compared to boilers. The goal is to drive down heat pump prices and encourage wider use in UK homes.

Industry Reactions

• Heat Pump Association (HPA): While acknowledging the lack of long-term certainty, the HPA sees this delay as an opportunity for the government to refine the CHMM for smoother operation. They also emphasize the need to address the electricity-gas price gap to make heat pumps a more cost-effective choice.

• Heating and Hotwater Industry Council (HHIC): Welcoming the delay, the HHIC reiterates the industry's commitment to Net Zero goals. They advocate for an "all-tech" approach to decarbonization, including heat pumps alongside other solutions like heat networks and hydrogen.

• Clean Tech Startup Heatio: Disappointed by the delay, Heatio argues that the CHMM would have fostered competition and lowered clean heat technology costs. They highlight the UK's lagging heat pump adoption compared to Europe and the continued reliance on gas boilers, which contribute to fuel poverty.

• Nesta (Sustainability Think Tank): While praising the relaxed Boiler Upgrade Scheme requirements, Nesta expresses concern about the CHMM delay. They believe it sends a negative message to crucial market players who rely on policy stability for investment decisions.

Looking Forward

The revised Boiler Upgrade Scheme offers homeowners more flexibility in home improvements when installing heat pumps. However, the CHMM delay raises concerns about the UK's commitment to clean heat transition and its long-term impact on energy security and affordability.