Source · Select Committees · Business and Trade Committee
Recommendation 14
14
It is vital that the Government should meet its target to deliver a minimum of...
Recommendation
It is vital that the Government should meet its target to deliver a minimum of 600,000 heat pumps a year by 2028 or it will fall off course in delivering net zero by
Government Response
Acknowledged
HM Government
Acknowledged
The market-based mechanism is a core part of the Government’s intended policy framework for supporting the development and scale-up of the UK heat pump market. It will provide the heating industry with a durable, market-wide framework and incentive to invest with confidence in developing the consumer proposition for heat pumps in the UK. In so doing, it will allow the market to discover what works to make heat pumps an increasingly attractive choice for an increasing number and diversity of consumers. The Government has recently concluded an initial policy consultation on proposals for the market-based mechanism. The consultation responses are currently being analysed and we will publish a response in due course. We also intend to consult further on more detailed proposals for the scheme. The Committee’s report discusses the illustrative 2028 target of 400000 heat pump installations in the Impact Assessment that accompanied the October 2021 consultation on the policy. This represents an estimate of total retrofit installations (i.e. those in pre- existing properties) across all tenure types. The combined obligations on those in scope of the market-based mechanism, taken together with the impact of other retrofit policy measures and the impact of the Future Homes Standard, are designed to deliver the Government’s full ambition for the heat pump market of 600000 annual installations by 2028.