Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of the proposed Clean Heat Market Mechanism on investment in heat pump production by UK-based businesses.
The Government supports an expansion of UK heat pump manufacturing and has set out an ambition for a thirty-fold increase in the number made and sold in the UK each year. The Government recently launched a £30 million Heat Pump Manufacturing Investment Accelerator Competition to complement the support offered by the new capital allowances announced in this year’s Spring Budget.
The Government is publishing a policy framework, including the Clean Heat Market Mechanism, to give clarity around the scale of the UK heat pump market.