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Clean Energy Levy Implementation on Gas and Oil Boilers
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9th December 2023
Cowal Building Festive Hours 2023
14th December 2023
Important Update on CHMM Levy Implementation on Gas and Oil Boilers
Clean Energy Levy in effect from 1st January 2024
Dear Customer,
We have received notification that Worcester Bosh will be required to apply a £120 levy on all gas and oil boilers up to 70kW from 1st January 2024 in line with CHMM legislation.
All other Major Boiler Manufacturers including :-
- Baxi / Potterton
- Ideal
- Valliant
- Vokera
- Ariston
- Grant UK
Will be subjected to the government levy.
What is the Clean Heat Market Mechanism? (CHMM)
With a target of 600,000 heat pump installations annually by 2028, the UK Government is actively promoting the adoption of Air Source Heat Pumps (ASHP) as a crucial step in decarbonising residential heating and hot water. ASHPs are presently the most readily available solution that generates zero emissions at the point of use.
Emerging from the Government’s Heat and Buildings strategy and the recently sanctioned Clean Energy Bill, the Clean Heat Market Mechanism (CHMM) is a government-initiated tool set to take effect on 1st January 2024. Its primary goal is to accelerate the integration of heat pumps into UK homes, responding to the challenge of a residential market exhibiting insufficient demand and reluctance to transition from gas boilers to heat pumps.
The CHMM seeks to serve as a market “incentive” to boost annual heat pump installations in existing properties. By offering a clear, long-term policy framework for investment and innovation, it aims to address the following key objectives:
- Mitigate upfront costs of heat pumps and facilitate installations to stimulate market growth.
- Promote the expansion of heat pump manufacturing within the UK.
- Increase the number of proficient heat pump installers while upholding high standards in installation quality.
In a significant development, on 20th September 2023, the Prime Minister announced an increase in the grant available to households considering the switch to a heat pump to £7,500.
For more information about the Government Grant click here
Contact your local depot about boiler and heat pump stock or visit our online shop.
