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Last updated: 26 March 2024

How Much Does a Ground Source Heat Pump Cost?

Ground source heat pumps are a great way to meet your household’s heating, cooling or hot water demands as they transfer heat from the ground rather than producing it from burning fossil fuels. This makes them an excellent sustainable and cost-effective system for your home.

When considering ground source heat pumps, there are several factors to take into account, such as:

  • The type of ground source heat pump
  • The size of the heat pump according to the specific needs of your home
  • The coefficient of performance (COP)
  • The amount of heat needed/heat demand
  • The temperature of the heat source
  • The cost of your heat pump and installation

A vertical ground source heat pump will be more expensive as the installer will have to dig deep into the ground — approximately 50-100 metres deep. You can expect a price range of £23,200 – £49,000.

A horizontal ground source heat pump, on the other hand, only needs to be dug 1-2 metres into the ground, resulting in cheaper installation costs. A horizontal system typically costs £16,200 – £31,000.
With such high installation costs, it becomes all the more important to ensure you’re receiving the most fair and accurate price for installation.

Luckily, GreenMatch is on hand to help you find the best deal, based on your home’s unique specifications. Our dedicated team is on hand to find the most trusted installers within our wide network. Within 48 hours, you can expect to receive up to 4 quotes from installers based in and around your local area.

Our quotes are completely free and come with no obligation and you can be sure the installer you are working with will be reliable. Avoid the days of tiresome price comparisons and laboriously contacting installers all by yourself by letting us take charge. To get started, follow the link below and fill out our quick 30-second form.

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What are ground source heat pump cost factors?

Ground source heat pump cost factors

Whether we are building an energy-efficient house or planning to change our current oil or central heating system, it is good to consider renewable energy sources. Ground source heat pumps, also known as GSHP, use pipes buried in the ground to provide the whole household with heat distributed in radiators and underfloor heating.

In this way, it may be a green solution with less energy consumption and higher efficiency. Ground source heat pump costs, just like air source heat pump costs, are considered expensive but are meant to pay themselves back over time.

Keep in mind that it is very difficult to calculate the ground source heat pump cost because there are many individual factors that can affect the overall price of the system. It is possible, however, to calculate the estimate of overall costs with a rather large margin of error.

When calculating the ground source heat pump costs we have to take into consideration several factors: the cost of the system, the installation costs, the heat pump running costs, and eligibility for incentives.
A ground source heat pump system usually consists of a heat pump, an underground heat exchanger, and a distribution system.

The average costs of purchasing a ground source heat pump system are:

  • Heat pump: The heat pump and installation may typically cost between £16,200 and £49,000 depending on the size, capacity and lifespan.
  • Horizontal: Installing GSHPs in a horizontal way needs more available land, which makes it more common in rural areas. Horizontal trenches cost between £3,000 and £12,000 in this way.
  • Vertical: Digging a vertical ground source heat pump borehole is an alternative choice if the land is limited, however, it is also more expensive. Vertical geothermal boreholes cost may range between £4,000 and £6,000 depending on the size of the heated area.
Vertical vs. Horizontal GSHP Price and Installation
Number of BedroomsCapacity of GSHP (kW)Price of Heat Pump and InstallationPrice of Horizontal GroundworkPrice of Vertical Ground
312kW£22,350 – £34,850£7,500£20,000 (3 vertical boreholes)

As startling as it sounds, a ground source heat pump is cost-effective compared to other heating alternatives. It is one of the most effective domestic low carbon heating solutions, as the temperature of the soil is constant all year round. This means your GSHP will not need to work harder in the winter months to run efficiently.

You may also want to consider a hybrid heat pump system. This combines a ground source heat pump with another heating system, typically a gas or oil boiler. This means you could install a smaller ground source heat pump which can reduce your overall running costs.

Price breakdown: equipment vs. non-equipment costs

The non-equipment prices for a 90kW retrofit ground source heat pump are slightly higher than the equipment price, mainly due to the drilling, boreholes, and groundwork (~60% of this cost) as well as the added complexity in the design and specification process.

Heat pump grants and benefits

As you can see in the figure above, 51% of the total price of ground source heat pump installation is non-equipment costs, of which 60% is the price of drilling and groundwork. The price of the heat pump itself and complementary equipment accounts for 49% of the total ground source heat pump price.

Below is a detailed breakdown of the ground source heat pump installation cost in the UK.

gshp cost breakdown
Source of cost breakdown: Department of Energy and Climate Change, 2016

Considering smaller ground source heat pump installations (for example, 12kW systems) the overall price will be approximately 10-20% per kW higher than the 90kW system.

The ground source heat pump price per kW will be higher than for 90kW in this case because many of the same parts, such as sensors & transducers, are used in a smaller system as in a large one – but are then proportionally a larger part of the total price.

Additionally, in the case of ground source heat pump borehole cost for installation, the price per metre of groundwork for the 12kW system will also be higher than for a 90kW system. This is because the costs to start up the drilling are the same whether for a small or large ground source heat pump installation. However, the costs of the groundwork needed for installing horizontal trenches are lower than for boreholes.

In the case of larger ground source heat pump installations (for example 600 kW systems) the overall price will be approximately 15% per kW higher than the 90kW system. In larger ground source heat pump installations (i.e., above ~250kW), the non-equipment price will include groundworks (including drilling), design, project management, commissioning, and labour.

To learn how your home suits a ground source heat pump, whether you will require a vertical or horizontal system, we recommend seeking the advice of a professional heat pump installer.

Use GreenMatch’s free quotes service to be connected with up to 4 installers, each of them licensed and matched to you based on your home’s specifications. By comparing their quotes, you can make your choice based on the most competitive prices and be sure that you’ve found an installer you can trust.

Finding trustworthy installers can be painstaking and could take days of reaching out to companies and gathering quotes on your own. Instead, we can provide you with multiple quotes from vetted installers in our network. Get started today by clicking the button below and filling out a 30-second form. All our quotes are free and come with no obligation.

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Financial support for ground source heat pumps

Heat pump grants and benefits

It is also important to note whether GSHPs are eligible for grants to help support your investment, and this will significantly decrease your running costs. You should also consult multiple installers to ensure that you’re getting the best prices for your heat pump installation.

There are many heat pump grants schemes available in the United Kingdom, to reduce ground and air source heat pump costs, and it is advised to research the incentives depending on which system you are considering implementing in your garden.

Comparison of ASHPs, GHSPs, and Gas Boiler (2024)
Dimensions ASHPGSHPGas Boiler*
Efficiency3.5 (COP) 4.5 (COP)92% (ErP)
Annual Running Cost£900£700£960
Annual Total Benefit vs Gas£65£260
Initial Cost (supply and installation)£11,500 £22,350 – £34,850
Initial Cost with Boiler Upgrade Scheme£4,000£14,850 – £27,350

* Gas Boiler calculations include daily standing charges. Calculations based on average-sized 3-bedroom home in the UK.  

Which type of heating system you choose to install in your home will depend on a number of factors, so it is worth it to consider costs associated with boilers vs heat pumps, as there are many different types of each respective heating system.

Even with the support of government grants, it’s important to ensure you’re receiving the best deal before giving an installer the go-ahead. That’s why we recommend comparing quotes from multiple installers, so you can take advantage of the most competitive rates.

It can be difficult to know which installers are offering the most fair and accurate prices for a reliable service. This can lead to countless hours of research, with a lot of dead ends. Alternatively, you can leave it to the team at GreenMatch to find you the best, most qualified installers for you to compare.

After you fill out our quick and easy 30-second form, we will connect you with up to 4 installers within 48 hours. From our wide network of installers, we will only connect you with those in and around your local area.

Local installers mean local rates, allowing you to avoid overpaying for the delivery of parts and labour from a large company.

Get started today by clicking below. All of our quotes come completely free and with no obligation.

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How can I benefit from a ground source heat pump?

There are various ways when it comes to alternative heating methods, the figures presented above show what the benefits are of investing in a ground source heat pump in comparison to air source heat pump (ASHP) and a gas boiler installation.

Investing in ground source heat pump costs has to be seen as a long-term investment, where profits come with use and time. The cost of a ground source heat pump system may seem expensive at first, but it will only take 4 or 5 years to be paid off. The profits generated by the GSHPs are not only in the financial sphere. As ground source heat pumps are a green source of energy, they also benefit Mother Earth.

What to consider before investing in ground source heat pumps

With the advanced technology and growing market share, there are varied types of GSHPs. Before making the investment in ground source heat pump costs, you might need to gather more information about the following elements:

  • Efficiency
  • System type
  • Installation costs

The efficiency of the heat pumps is measured by their coefficient of performance (COP). This is the ratio of heat produced per unit to electricity consumed in pumping that heat. The higher the number, the more efficient your installation is.

Different group source heat pump systems have varied requirements. Generally, ground source heat pumps require either a large garden or extensive drilling in the ground. This is due to the fact that horizontal heat pumps are buried shallowly within the ground but on a large area, therefore this type of GSHP works best when you have a big backyard.

On the other hand, vertical heat pumps are buried deep within the ground but require very little backyard space.

It is also important to note that ground source heat pump systems run on electricity but, compared to alternative heating systems, they are less demanding in terms of energy needs.

Installing a ground source heat pump can be a difficult task which, if done incorrectly, can impact the efficiency of your heating system. This is why it’s important to hire a trustworthy installer.

Using GreenMatch’s free quotes service, you can be sure that you’re receiving quotes from the best installers, all of them qualified with Microgeneration Certification, and based in and around your area. This saves you all the time and effort of finding installers by yourself and allows you to avoid overpaying for the delivery of parts and labour from a large company.

Simply click the button below to get started. All of our quotes are completely free and come with no obligation.

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FAQ

Valli Vishnubhotla
Written by Valli Vishnubhotla, Content Writer

Valli has been writing well researched articles about renewable energy, sustainability and green technologies for GreenMatch since 2017. Her work has been published in various media such as Entrepreneur, Business Insider, Canadian Geographic, uSwitch, and eCycle.

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