Source · Select Committees · Business and Trade Committee
Recommendation 19
19
Rejected
Paragraph: 75
We acknowledge the introduction of the market-based mechanism outlined in the Heat and Buildings Strategy;...
Recommendation
We acknowledge the introduction of the market-based mechanism outlined in the Heat and Buildings Strategy; however, it will not deliver the scaled-up heat pump market needed to achieve the Government’s heat pump target. The Government must expand the market-based mechanism as well as explore other options to catalyse the development and scaling up of the heat pump market.
Government response summary AI-generated
The government rejects the recommendation to expand the market-based mechanism and explore other options. Instead, it describes alternative local authority delivery schemes for improving the energy performance of low-income homes, arguing its approach is different.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
75
Government Response
Rejected
HM Government · verbatim extract
Rejected
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.
Read the full response on Parliament ↗