Politics · United Kingdom · 8 hrs ago

UK considers raising heat pump sales targets for boiler makers

UK considers raising heat pump sales targets for boiler makers

The UK government is considering raising heat pump sales targets for boiler manufacturers under its Clean Heat Market Mechanism.

The proposed change would increase the required share of heat pumps from 8% to 18% of manufacturers’ output, though it has not been confirmed as final.

Companies that miss their targets can face fines of up to £500 for each heat pump short of their quota.

Industry critics estimate the added costs could raise the charge on a gas boiler from about £100 to £140, while the government says manufacturers do not have to pass fines on to customers.

The policy aims to support heat pump sales, but only 52,000 were installed in UK homes last year, and a typical heat pump costs more to install than a gas boiler even after a government grant.

The change matters because households replacing boilers could face higher costs, although the effect on prices is uncertain.

The government has consulted on higher targets, and the sources do not say when a final decision will be made.

3 sources

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What people are saying

Mike FosterEnergy and Utilities Alliance chief executive
At a time when demand for heat pumps is falling, only the economically illiterate would suggest that supply is the problem.
via The Sun
Shimeon LeeTaxPayers’ Alliance policy analyst
Ministers are playing a dangerous game with family finances by ramping up this stealth tax on hard-working households.
via The Sun
Department for Energy Security and Net Zero spokesmanGovernment spokesperson
The Clean Heat Market Mechanism provides the certainty needed for manufacturers to invest in the UK’s heat pump market with confidence, while helping to drive down installation costs for consumers.
via The Sun