Would we need to install a HW tank and then use the boiler as a system boiler?
[Add a buffer tank that is basically a tank with two flow and returns.
Check out Richard Owens posts...
http://www.navitron.org.uk/forum/index.php/topic,7926.0.html
Maintains a buffer exacerbates heat pump compressor cycling!
I hate to agree with you Water Systems, but you're correct the ASHP will cycle like hell. However, the OP is on a tight budget, so a buffer tank is something he can't afford. So it can be installed without, not the best, but it can be done.
The better quality air con and heat pumps do modulate.
They do this by changing the speed of the compressor.
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