A market-based mechanism for low carbon heat

Closed 12 Jan 2022

Opened 19 Oct 2021


This consultation seeks views on proposals to introduce a market-based mechanism to support the development of the UK market for low-carbon electric heat pumps.

This mechanism will create a market incentive to grow the numbers of heat pumps installed in existing premises each year, providing industry with a clear, long-term policy framework for investment and innovation.

In this consultation, we are seeking views on a range of design features of the proposed mechanism, including:

  • the proposed scope of technologies and installations
  • the choice of core target for the mechanism
  • options for trading within the mechanism
  • options for scheme administration, penalties and enforcement


  • SMEs (small and medium businesses)


  • Saving energy