The Department for Energy Security and Net Zero (DESNZ) opened a consultation on 12 October 2026 proposing four more years of rising heat pump targets for boiler manufacturers. Responses are due by 8 November 2026.
The proposals concern the Clean Heat Market Mechanism (CHMM), which came into force on 1 April 2025. It does not give households money directly. Instead, it requires manufacturers of fossil fuel boilers to acquire credits that represent heat pump installations, or pay a penalty for any shortfall.
What is proposed
The first scheme year (2025/26) set a target of 6% of eligible boiler sales, and year two (2026/27) is set at 8%. For the next four years DESNZ proposes:
- 2027/28: 9% of relevant sales, equivalent to up to 118,000 heat pumps
- 2028/29: 12%, up to 157,000
- 2029/30: 15%, up to 197,000
- 2030/31: 18%, up to 236,000
On these figures the target would double in four years, by our own calculation from the consultation’s numbers. DESNZ says the path is designed to support its ambition of 450,000 heat pump installations a year by 2030, of which about 250,000 would be retrofits in existing homes.
The scheme regulations would also be extended from 31 March 2029 to 31 March 2032.
Other changes on the table
- New-build credits. Heat pumps installed in new homes would earn credits from 2027/28, provided they are certified under the Microgeneration Certification Scheme. DESNZ says the targets are set so they could be met by retrofit installations alone.
- Flexibilities kept. Manufacturers could still carry forward up to 35% of a year’s target and carry over 10% of credits, as now.
- Payment in lieu. The charge for each missing credit would stay at £500.
- Scope. Air-to-air heat pumps and heat batteries would remain outside the scheme, although the government has confirmed they will become eligible for Boiler Upgrade Scheme grants once MCS standards exist.
- Manufacturing. DESNZ asks whether investment in UK manufacturing and sustainable supply chains should count towards targets.
What it means
The consultation is a proposal, not a decision. A final response and amended regulations would follow. For households, the targets act on manufacturers rather than customers, but the aim is to build supply chains and bring down the cost of heat pump installation. See our explainers on heat pumps, the Boiler Upgrade Scheme and MCS certification.