London Reduces Penalties for Boiler Manufacturers: A Step to Promote Environmentally Friendly Heating Solutions

The British government has announced a significant reduction in the planned penalties for boiler manufacturers who fail to sell a sufficient number of heat pumps. This move followed strong resistance from the industry. Starting next April, the penalty per unsold heat pump will be reduced from the original £3,000 to £500. The measure aims to boost the sales of environmentally friendly devices without deterring investors. The pressure leading to this decision came in the form of intensive lobbying. The industry warned that the original sanctions were not aligned with market demand and could drive up prices for consumers as well as endanger jobs. The government emphasized that the changes are intended to give manufacturers time to expand their supply chains and make heat pumps more attractive to households. The transition from gas boilers to heat pumps is crucial for the United Kingdom to achieve the legally binding target of net-zero carbon emissions by 2050. According to the MCS database, only 40,000 heat pumps were installed in 2023, well below the government's target of 600,000 per year by 2028. The previous conservative government already planned sanctions for boiler manufacturers by 2025 if they did not meet a certain quota of heat pump sales. Initially, a penalty of £5,000 per missed heat pump was envisaged, reduced to £3,000 by the Tories. The reduction to £500 announced under the Labour government, which came to power in July, applies in the first year of the program and could increase after an evaluation. In parallel, the government is increasing the grant budget for households to install heat pumps to £295 million next year and relaxing planning guidelines to facilitate installations closer to neighboring properties.