PHAM NEWS | MARCH 2026 Industry viewpoint
A smart step towards low-carbon hot water
Compact and self-contained, domestic hot water heat pumps could represent a relatively easy way to improve hot water effi ciency and cut carbon emissions. Eric Winter, chair of the Hot Water Association Technical Group, explains how.
reduce carbon emissions without major disruption in the home. A domestic hot water heat pump (sometimes referred to as an integrated heat pump cylinder) could be one of the simplest and most impactful upgrades for a domestic hot water system, because it off ers straightforward installation, effi cient hot water and impressive SAP and EPC improvements. Domestic hot water heat pumps
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combine a domestic hot water cylinder with a compact, dedicated heat pump built into the unit, typically located on top of the cylinder. Instead of relying on a gas boiler or a direct electric immersion to heat the stored water, the small heat pump extracts energy from the air to raise water temperature effi ciently. These ‘all-in-one’ appliances are
widely used in Europe and are becoming increasingly popular in the UK as a stepping stone towards a fully electric heating system, such as a conventional heat pump.
How they work The small heat pump on top of the hot water cylinder extracts heat from the air, usually through ducts routed from outdoors, into the refrigerant within its pipes. The refrigerant is compressed to produce heat, which can then be transferred through pipes or a heat exchanger into the water in the cylinder where it is stored for future use, with an immersion heater or boiler backup if needed. Seasonal performance varies with
air temperature, but systems can commonly achieve a coeffi cient of performance (COP) of 3 to 4, meaning
1kWh of electricity can produce 3 to 4kWh of heat.
Potential applications These products’ compact, self- contained design and simpler installation also make them a versatile choice for new build apartments and they are taking over from direct electric water heaters in that market. The space heating requirements are often quite low, as each apartment is mainly surrounded by others at the same temperature and with heat coming from other appliances and the occupants of each apartment. Domestic hot water heat pumps are
particularly suitable for homes where a full heat pump system isn’t feasible, such as properties lacking suffi cient outdoor space for air source heat pumps, those with heat emitters not
s UK homes transition away from fossil fuels, domestic heating engineers are increasingly looking for practical solutions that can
HeatPumps 15
Warm Homes Plan – what you need to know
With further funding to lower costs for consumers, the recently announced Warm Homes Plan has confi rmed the government’s ambitions to grow the UK heat pump market. Martyn Bridges from Worcester Bosch looks at the key points.
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Eric Winter Chair of the Hot Water Association (HWA) Technical Group
suitable for lower temperature heating or for retrofi t projects, especially where the existing heating system may not yet be ready for full decarbonisation. By modernising the hot water system fi rst, homeowners can reduce energy bills and carbon emissions while working toward a future-proofed home. For homes that are already electrically
heated, replacing a cylinder that only has an electric immersion heater with an integrated heat pump cylinder can achieve signifi cant energy savings. Social landlords, in particular, can
gain signifi cant value. With regulatory pressure increasing through the Future Homes Standard and the push for lower carbon heating, domestic hot water heat pumps can deliver substantial gains in SAP points and improved EPC ratings, while improving running costs for residents, especially when special off - peak electricity tariff s are used. They are usually sited in utility rooms,
airing cupboards or similar spaces and require ducting to bring in cool air from the outside and extract warm air. The units are designed to be quiet, but noise- sensitive locations, such as bedrooms, should still be assessed. Additional considerations are the
electrical supply, as a suitable, dedicated circuit will be required, and the hot water demand of the household, so that the size of the cylinder meets the household’s needs.
And fi nally… As the UK pushes toward a low-carbon future, installers need solutions that balance practicality, aff ordability and performance. Domestic hot water heat pumps provide an accessible fi rst step for homeowners and landlords, help to reduce running costs and pave the way for full decarbonisation, all without the complexity of a complete heat pump upgrade. ◼
www.hotwater.org.uk
he long- awaited Warm Homes Plan was fi nally
published in January, and unsurprisingly, the government has doubled down on its support for heat pump technology. Here’s what you need to know about heat pump updates from the Warm Homes Plan.
More BUS support The government has reaffi rmed its commitment to the Boiler Upgrade Scheme (BUS), which provides a grant of up to £7,500 towards homeowners installing a heat pump system. With an enhanced budget of £2.7 billion, BUS grants will be made available in increasing numbers until 2030. For the fi rst time, eligibility has also been extended to purchases of air-to-air heat pumps. Unfortunately, hybrid heat pumps
were still not acknowledged in the Warm Homes Plan. It’s disappointing because installing a hybrid system is signifi cantly less disruptive to homeowners and it’s an apt substitute for a combi-boiler in many UK properties. We will continue to provide evidence to
DESNZ, DBT and the Treasury regarding the benefi ts of hybrids – which, in most cases, can decarbonise a home’s heating by up to 80%.
Reduced installation targets The Future Homes Standard is expected to launch at some point in the fi rst quarter of 2026, mandating newbuild properties to meet robust criteria for high-effi ciency heating. It will probably be impossible to meet these requirements without a low-carbon heating system – and for the majority, that will of course be a heat pump. Despite this, the government reduced its
heat pump sales targets from 600,000 per year by 2028 to 450,000 per year by 2030. This is certainly a more realistic fi gure. Anything between 150,000 and 200,000 of those installations will go into newbuilds, while the remaining 250,000 or so will likely be retrofi ts. Time will tell how the market responds
to shifting support plans to help homeowners make the switch to low- carbon heating.
Additional grants A bolstered heat pump training grant of £21 million has also been announced. This will go towards upskilling gas and oil-fi red boiler installers in the techniques and best practices required to off er heat
Martyn Bridges Director of governmental and external affairs at Worcester Bosch
pump installations. Extra training support
comes at a pivotal moment for securing public confi dence in heat pump technology. After January’s cold
snap, social media was fl ooded with stories of people paying lots towards their heat pump running costs, most likely because of poor- quality installations and commissioning. Many complaints came from newbuild property owners, who may not have been shown the optimal settings for their heat pump system.
Consumer protection The government plans to introduce better protections for consumers, and installers may be obligated, particularly in newbuild properties, to return to show homeowners how to get the most from their systems. The homeowner quite often purchases the property when it’s completely fi nished and the installer isn’t present. Plans were also announced to address
delays in heat pump installation. When heat pumps are a distress purchase, it can take weeks, or even months, for a homeowner to get the necessary approval to purchase a heat pump through the BUS. The government will cut waiting times to encourage people to make the switch when their boiler fails, however, details remain sketchy.
UK manufacturing One interesting ambition the government has is to bring 70% of all heat pump manufacturing back to the UK. Various funding schemes have been established to encourage manufacturers to transition some or all of their premises onto home soil. Yet, many of the large manufacturers
have invested heavily in ‘super plants’ in countries where manufacturing is cheaper. It will be very diffi cult for the UK to compete against the margins that low- cost manufacturing at scale unlocks.
Growth prospects While there haven’t been too many sweeping changes to the government’s position on heat pumps, there’s a clear mandate to drive growth in the market. The UK is committed to supporting heat pumps, from manufacturing to sale to implementation in the home. Now we just need that strengthened
support to translate into consumer demand – because today, the two are drifting apart at a faster rate than ever.
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phamnews.co.uk/326/29
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