The UK Government's consultation on the Clean Heat Market Mechanism for its second year closed on 2 July 2025, having opened on 7 May 2025. It covered the Year 2 heat pump credit target and the proposal to name MCS as the sole certification scheme. The Scottish Government's Heat in Buildings progress report, published on 2 October 2025, states that the consultation responses "are currently being analysed and an update will be published in due course"1.
The mechanism itself began on 1 April 2025 and, according to the same report, "will run until at least 2029"1. It places an obligation on fossil fuel boiler manufacturers and importers in Great Britain, with credits earned for heat pump installations. The report does not set out the level of the Year 2 target, and no figure for it has been reported.
The consultation also proposed making MCS the only certification scheme recognised under the mechanism. MCS is the certification body for small-scale renewable and low-carbon heating installations, and its role sits alongside the wider framework of heat pump standards, testing and certification. The report does not record the outcome of that proposal.
Separately, the report gives figures on public awareness of heating systems in Scotland. Awareness of air source heat pumps rose from 18 per cent in 2018 to 30 per cent in 2022 and 35 per cent in 2024, while awareness of biomass boilers fell from 32 per cent in 2018 to 28 per cent in 20241. Overall, 61 per cent of households were aware of renewable power or low or zero carbon heating systems in 2024, a two percentage point rise on 20221.
| System | 2018 | 2022 | 2024 |
|---|---|---|---|
| Air source heat pump | 18% | 30% | 35% |
| Ground source heat pump | 20% | 27% | 29% |
| Biomass boiler | 32% | 30% | 28% |
| Solar panels for electricity or hot water | 57% | 57% | 59% |
| Any of the systems mentioned | 59% | 59% | 61% |
The Scottish Climate Survey, run between October 2024 and January 2025, found that fewer than 5 per cent of households reported having a heat pump installed at home, and that cost and a lack of interest were the main barriers given for installing one1. Consumer Scotland research published in May 2025, conducted by Changeworks, identified high upfront costs, myths and misinformation about the effectiveness of low carbon technology, and disruption during installation as the main barriers1.
Why it matters for households
The Clean Heat Market Mechanism works on manufacturers rather than directly on households, so its Year 2 target shapes the supply of heat pumps and the prices at which they reach the market. Naming a single certification scheme would affect which installers can carry out work counted under the mechanism, and therefore which installations qualify. For a household considering a heat pump, the certification route is the practical link between a grant or an obligation and the installer who does the work. The Boiler Upgrade Scheme and the wider set of UK heat pump policy and targets sit alongside the mechanism, and the report does not say how the two interact for any individual installation.
The awareness figures suggest that recognition of heat pumps has grown but remains below recognition of solar panels, and that ownership is uncommon. The barriers reported by households are cost, disruption and confidence in the technology, which are the same points the consultation and the certification proposal touch on.
What happens next
The consultation responses are being analysed and an update will be published in due course1. The report also states that research evaluating the current customer journey in the heat transition will commence in autumn 2025, looking at whether that journey is effective, easy to navigate and gives customers the information they need1. No date has been given for the Government's response to the consultation.