Clean Heat Market Mechanism Penalty Calculator
April 2026 CHMM quotas mean you must sell ~6.6% heat pumps per gas boiler or pay £3k per miss. Use this guide, calculator, and Toolfy automations to stay compliant.
Target heat pump share
≈6.6%
Initial CHMM phase
Penalty per miss
Up to £3,000
DESNZ guidance
Installers surveyed
1,100+
MCS research
⚠️ 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 Market Mechanism: how the rule works
The Clean Heat Market Mechanism requires boiler manufacturers and large installers to deliver a set proportion of heat pumps relative to gas boilers. Miss the target and Ofgem invoices £3k per unit. You can deliver your own installs, buy credits, or pay penalties.
- Target starts at 6.6% (2026) and rises toward 20% by 2028.
- Certificates are tradable, but trading prices will likely stay between £1.5k-£2k initially.
- Penalties are not tax-deductible marketing expenses—they directly erode EBITDA.
Run the CHMM penalty calculator
CHMM planning
Penalty & credit forecast
Set your boiler vs heat pump mix and see how much capital is at risk per quarter.
Compliance achieved
120.0%
Required heat pumps
8
6.6% obligation
Shortfall
0
Units to make up
Cost to comply
£0
Pay penalties
Implementation checklist
Toolfy automations for CHMM
Quota dashboards
Track gas vs heat pump mix daily with data pulled from CRM + Toolfy jobs.
Heat pump pipeline
Tag every electrification opportunity, auto-nurture with financing + BUS content.
Certificate locker
Store MCS numbers, warranties, and homeowner sign-offs per install for Ofgem audits.
Next step
Book a CHMM planning session.
We will import your boiler + heat pump pipeline, configure dashboards, and hand over mitigation templates.
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