Clean Heat Market Mechanism: Revisions ahead of Scheme Year 2 (2026/2027)
This consultation is open for responses
Respond to this consultationSummary
DESNZ consults on revisions to the Clean Heat Market Mechanism for scheme year 2 (2026/2027), following the mechanism's launch on 1 April 2025. The mechanism requires fossil fuel heating manufacturers to contribute to heat pump deployment costs. Specific revisions and parameters are not detailed in this announcement.
Why it matters
This is redistributive policy — it taxes fossil heating to subsidise heat pumps rather than addressing why heat pumps cost more to install and operate. As such, it treats the symptom of expensive clean heating rather than fixing the underlying cost drivers in the electricity system.
Key facts
- •Scheme launched 1 April 2025
- •Year 2 covers 2026/2027
- •Consultation published 7 May 2025
Timeline
Areas affected
Related programmes
Memo
Following the launch of the Clean Heat Market Mechanism on 1 April 2025, this consultation sets out the Government’s proposals for Year 2 of the scheme and invites stakeholders to provide their views on these proposals. Read the [consultation document on GOV.UK](https://www.gov.uk/government/consultations/clean-heat-market-mechanism-revisions-ahead-of-scheme-year-2-20262027).