Under the mechanism, a £3,000 fine will be charged for every missed heat pump sale, HPM reported.

A statement by the EUA said that the industry expected the scheme to take into account the recent Net Zero re-set by the Prime Minister, where he stated that not all homes were suitable for a heat pump and that off-gas grid homes would not be forced into fitting a heat pump until 2035, not 2026. But the targets set by the government have not changed.

Mike Foster, CEO of Energy and Utilities Alliance (EUA) said: “The industry is disappointed that Ministers have failed to reflect upon the extremely challenging market conditions and the new reality described by the Prime Minister. We all know heat pumps have a role to play in heat decarbonisation but punishing manufacturers because consumer demand isn’t there is just perverse.

“We have told Ministers and officials what they need to do to stimulate the market, but they seem determined to drive through this quota system regardless of the fundamentals facing consumers.

“As manufacturers, in a market economy, we will supply what the consumer wants to buy – heat pumps or boilers. The UK’s approach to heat decarbonisation now relies on forcing a product sale or facing a fine, that’s not good business.

“We remain convinced that the way forward is for the government to ensure that a full range of heat pump hybrid systems qualify as part of the quota and that there are sufficient numbers of installers trained and available to fit the products our members make.”