The Warm Homes Plan, published in January 2026, sets out the government’s wider strategy for improving the energy performance of UK homes and accelerating the adoption of low-carbon technologies. Alongside existing support such as the Boiler Upgrade Scheme, this represents a significant opportunity for installers, contractors and housing providers delivering heat pump retrofit projects.
While much of the attention naturally falls on the heat pump itself, successful installations also depend on the wider system around it. For many properties, that includes an appropriately specified hot water cylinder.
Heat Pumps at the Centre of Home Heating Investment
Government support for heat pumps is now available through several routes.
The Warm Homes: Local Grant is being delivered through local authorities in England and can support energy-efficiency measures and low-carbon heating in eligible homes. This includes measures such as insulation, solar PV and air source heat pumps where suitable.
Separate funding is available through the Boiler Upgrade Scheme in England and Wales. Eligible property owners can currently receive £7,500 towards the installation of an air-to-water or ground source heat pump, while qualifying off-gas-grid properties replacing oil or LPG heating can receive £9,000 until 31 March 2027.
With increasing numbers of households expected to move away from traditional fossil-fuel heating systems, attention must also be given to how domestic hot water will be generated and stored.
Why Hot Water Storage Matters in a Heat Pump System
A heat pump operates differently from a conventional gas or oil boiler.
Rather than producing very high water temperatures over a short period, heat pumps generally operate most efficiently at lower flow temperatures. As a result, the design of the hot water system becomes particularly important.
In properties moving from a combi boiler, installing a heat pump can also mean introducing stored hot water where previously there may not have been a cylinder at all.
The cylinder therefore needs to be considered as part of the complete system rather than as a secondary component.
Factors such as cylinder capacity, heat exchanger performance, recovery requirements and available installation space all need to be considered when specifying a system.
Choosing a Hot Water Cylinder for a Heat Pump
Heat pump cylinders are designed to maximise heat transfer from lower-temperature primary water.
Compared with many conventional indirect cylinders, heat pump-compatible models typically require a greater heat-transfer area to efficiently transfer energy into the stored domestic hot water.
Correct specification can therefore have a significant influence on system performance.
Installers and contractors should consider:
- The required hot water storage capacity.
- Available heat exchanger surface area.
- Heat pump output and operating temperatures.
- Expected hot water demand.
- Cylinder recovery performance.
- Available installation space.
- Pipework and connection requirements.
- Whether single or twin-coil configurations are required.
Considering these factors at the design stage helps ensure the heat pump and hot water system operate together effectively.
Supporting Heat Pump Installations with EXCELSIOR WHP
The EXCELSIOR WHP range has been developed specifically for heat pump applications, providing dedicated hot water storage for systems operating with lower primary temperatures.
Manufactured by Fabdec in the UK, the range is available in a selection of capacities and configurations to support different residential and project requirements.
The WHP range incorporates heat exchangers designed for heat pump applications, with single and twin-coil options available across selected models. Larger models are also available with 28 mm connections where increased flow rates are required.
For installers, contractors and specifiers, this provides a purpose-designed alternative to attempting to adapt a conventional cylinder to a low-temperature heating system.
A Growing Opportunity for Installers and Retrofit Contractors
Warm Homes funding is already moving into delivery through local authorities across England.
Funding allocations extend across the country, including significant programmes in areas close to Fabdec’s manufacturing base. Cheshire East, for example, has received more than £8 million through the Warm Homes: Local Grant programme alongside Cheshire West and Chester and Warrington.
This funding, combined with continued support through the Boiler Upgrade Scheme and wider investment in residential decarbonisation, is expected to create continued demand throughout the heating and retrofit supply chain.
For contractors delivering these projects, reliable access to compatible heating equipment will be increasingly important.
This includes not only the heat pump, but the hot water storage, controls and associated equipment required to create a complete system.
UK-Manufactured Hot Water Storage for Retrofit Projects
As the UK increases investment in heat pump installations, manufacturers have an important role to play in ensuring installers and contractors have access to appropriately specified equipment.
EXCELSIOR manufactures stainless steel hot water cylinders at Fabdec Group’s UK manufacturing facility in Ellesmere, Shropshire, supplying installers, merchants and heating professionals across the UK and internationally.
The EXCELSIOR WHP range provides a dedicated solution for heat pump installations, from individual residential projects through to larger retrofit requirements.
For installers, contractors, housing providers or project teams planning heat pump installations, the Fabdec team can provide support with hot water cylinder selection and specification.
Planning a heat pump installation or retrofit programme?
Explore the EXCELSIOR WHP heat pump cylinder range or contact Fabdec to discuss your hot water storage requirements.
