# Understand what a heat pump proposal offers

Lesson 1 of [Heat pump foundations for property buyers](https://heatpumppros.fyi/academy/heat-pump-buyer-foundations.md), 12 minutes.

A heat pump proposal is easier to read when you separate three questions: where the heat comes from, what the system supplies, and what changes the property needs. A product name alone does not answer all three. This lesson gives you a vocabulary for a discussion with a designer or installer. It does not give installation instructions or establish whether a particular product is suitable for your building.

## Start with the heat source

Air-source heat pumps absorb heat from outside or surrounding air and transfer it into useful heat in the building. Ground-source heat pumps transfer energy from heat stored in the earth. HMRC's public technical description explains this distinction. We use that description for the basic mechanism, not as advice about taxes or eligibility for financial support.

Write the proposed source at the top of your comparison sheet. Then ask what equipment goes outside, what goes inside, and how the installation connects to the building. For an air-source proposal, ask the installer to show the outdoor location and explain the airflow space. The CMA consumer guide specifically identifies outdoor airflow and indoor space as heat pump buying considerations. Do not assume that an empty corner is an acceptable installation location.

## Separate heating, hot water and cooling

Air-source heat pumps can supply space heating, water heating, or both. Reversible fixed air-source systems can also provide cooling. That description does not mean every quoted installation includes all these services. Ask the provider to identify explicitly whether the proposal supplies room heating, domestic hot water and cooling. If a service is excluded, record how you will provide it instead.

For example, a property manager might request heating and hot water but receive a proposal describing only heating equipment. The useful response is to ask for the hot water scope and its required space, rather than assuming it is hidden in the price. Where a cylinder or other storage is proposed, request its location and the changes needed to accommodate it. Avoid copying another property's layout without an assessment.

## Understand the ground connection

A closed-loop ground-source system is fully sealed. The Environment Agency describes it as taking no water from the environment and discharging no water or fluids to it, with no direct connection between its sealed boreholes or pipework and groundwater. An open-loop system instead pumps environmental water and reintroduces it after use. These descriptions matter when you discuss environmental checks, ground works and responsibility for approvals.

Do not treat every ground-source proposal as the same project. Ask whether it is open or closed loop and have the provider explain the answer in plain English. The environmental guidance cited here applies to England. Elsewhere, ask the relevant environmental authority which checks apply; the system description alone is not permission to build.

## Make a useful comparison note

Create a short note for each proposal: source, included services, indoor equipment, outdoor or ground works, and unanswered questions. Use the same headings for every bidder. A blank answer is a question to resolve, not evidence that the work is unnecessary. This helps a homeowner compare options and helps a facility buyer explain the proposal to colleagues who have not attended the site visit.

Your goal at this stage is a clear description. You are ready to move on when you can explain what the proposed system will do and what still needs assessment, without relying on a sales label.

## Sources

- https://www.gov.uk/hmrc-internal-manuals/vat-energy-saving-materials-and-grant-funded-heating-supplies/vensav3080
- https://www.gov.uk/government/publications/buying-green-heating-and-insulation-products-consumer-guide/buying-green-heating-and-insulation-products-a-consumer-guide
- https://www.gov.uk/guidance/closed-loop-ground-source-heating-and-cooling-systems-when-you-need-a-permit
- https://www.gov.uk/guidance/open-loop-heat-pump-systems-permits-consents-and-licences

Also on the [web page](https://heatpumppros.fyi/academy/heat-pump-buyer-foundations/understand-the-system).