Clean Heat Market Mechanism Survival Guide (2025)
From April 2025, boiler manufacturers (and the installers they rely on) must deliver heat-pump credits equal to 4% of the previous year’s boiler sales or pay £3,000 per missing credit. This playbook shows you how to track quota with Toolfy dashboards, keep supply chains honest, and build safety valves before DESNZ starts invoicing.
4% quota
2025 baseline
DESNZ CHMM final design
£3,000
Penalty per missed credit
Energy Security Act 2023 regulations
600k
Boiler sales 2023 UK
HHIC market outlook
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Clean Heat Mechanics in one page
DESNZ’s final design (Sept 2023) keeps it simple: every boiler manufacturer receives an annual quota letter showing how many heat-pump credits they must deliver the following year. Credits come from selling heat pumps (primarily ASHPs) that are installed by MCS contractors and logged in the central registry.
- Credits can be created by heat pump manufacturers or their installer networks; both sides need airtight data capture.
- DESNZ can buy/sell credits between obligated parties, but waits until Q4 each year, so proactive tracking wins.
- Missed credits cost £3,000 each and are due within 60 days; evidence must prove why the deficit occurred.
Quota ramp + forecasting
Use DESNZ’s indicative ramp below to convince execs that 2025 is the cheapest year to iron out kinks.
| Year | Requirement | Notes |
|---|---|---|
| 2025 | 4% of boiler sales | Credits capped at 2 per dwelling |
| 2026 | 6% (proposed) | Subject to DESNZ review late 2025 |
| 2027 | 8% (proposal) | Likely aligned with Boiler Upgrade Scheme uplift |
Source: DESNZ “Design of a Clean Heat Market Mechanism” consultation response (Sept 2023).
Quota tracking workflow inside Toolfy
Quota dashboard
- Connect ERP boiler shipments to Toolfy via API.
- Transform volumes into credit targets per region.
- Highlight gaps vs forecast using red/amber/green statuses.
Installation proof
- Job template enforces MCS ID, BUS voucher, commissioning sheet.
- Ops cannot close jobs until documents + photos attach.
- Finance tags revenue to credit IDs for margin tracking.
Escalation rules
- If any region drops below 80% attainment, auto-create marketing + partner tasks.
- Legal receives weekly digest of penalties/trades in flight.
- Board pack exports combine Toolfy data + CFO commentary.
Interactive CHMM checklist
Use this to keep ops, finance, and compliance in sync as the quota winds tighten.
Turn quota tracking into a calm Monday dashboard
Toolfy links ERP data, installation evidence, and marketing follow-ups so CHMM reports take minutes—not frantic all-nighters.
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