Clean Heat Market Mechanism
On November 30th 2023, the U.K. Government confirmed the details of its Clean Heat
Market Mechanism (CHMM), which comes into effect from 1st January 2024.
The mechanism requires manufacturers of fossil fuel appliances, i.e. gas and oil boilers,
to sell and have installed a volume of air source heat pumps (ASHP) under the
Microgeneration Certification Scheme (MCS) that equates to 4% of the volume of their
boiler sales.
Failure to meet this target volume will result in the manufacturers incurring a £3,000
penalty for every unit under that target.
Due to this and the manufacturers' estimation that the volumes are unrealistic and
unachievable, the manufacturers will apply a Clean Heat Market Mechanism Levy to
all boilers sold from January 1st, 2024.
We are still awaiting information and total clarity from all of the manufacturers, but what
we currently understand is that: -
• Worcester Bosch will have a £120 per boiler levy applied.
• Baxi Heating will have a £120 per boiler levy applied.
• Ideal Heating will have a £110 per boiler levy applied.
• Vaillant will have a £95 per boiler levy applied.
• Keston {up to 70kw } will have a £145 per boiler levy applied .
These levies apply to all boilers sold into the residential market except for ALL NEW
BUILD DEVELOPMENTS, which are exempt from any government calculations and
penalties – how this exemption works though is still not clear.
Please note that the increases are applied based on the dispatch date and not the order
date.
