Government Statement 20.09.23 - Q&A's

We’ve put together some FAQs following the government’s statement on 21st September to help you better understand what it means for home heating.

How do the government’s latest announcements impact the boiler market?

Within the Heat and Buildings Strategy it was proposed that oil, LPG and coal fire boilers would be banned from 2026. This is no longer the case. You can continue to purchase and install gas and oil boilers until 2035.

The exemption that was announced is estimated to account for 20% of households that can continue to have boilers installed after 2035.

What does this mean for heat pump demand in the UK?

The scheme plans to increase interest in heat pumps as they are further subsidised therefore reducing the startup costs for households looking to make the switch to heat pumps.

How best can we pass on this information to consumers?

Boiler manufacturer websites will have plenty of information on the Boiler Upgrade Scheme and the new boiler ban extensions. It is advisable to direct them to websites such as ours. For more information on the Boiler Upgrade Scheme, click here.

What happens now to the proposed Clean Heat Market Mechanism?

As some of you may know there was a proposal by government that boiler manufacturers must match or substitute 4% of their boiler sales with heat pumps. If they fail to hit this quota, they will be fined £5000 for every heat pump they were short of their target or they could purchase a credit from a non-obligated heat pump manufacturer to reach this target.

It was announced on 20.9.23 that the Clean Heat Market Mechanism is still going ahead even though the retrofit market for heat pumps is likely to be reduced with the extension of the boiler ban for oil and LPG until 2035. We understand there may be some changes to the target quotas and perhaps to the fines maybe levied against manufacturers but as a principle, the Clean Heat Market Mechanism looks like it is still going to happen.

What is the latest on Hybrids?

The announcements made by the Prime Minister on 20.9.23 did not include any references to hybrid systems and as far as we are aware in this moment in time, there are no plans to allow the BUS grant for the funding of a hybrid heating system.