How much do ground source heat pumps cost?

• Gas boilers are set to be banned from 2035
• A ground source heat pump costs anywhere from £17,000 to £35,000
• The Boiler Upgrade Scheme offers people in England and Wales up to £7,500
• There are two types of installations: Vertical or horizontal

The government is encouraging people to switch to ground-source heat pumps and other renewable energy alternatives, and while heat pump costs  may look like a hurdle, it’s important to explore eco-friendly options before the gas boiler ban comes into effect on 2025.

Ground-source heat pumps are a useful renewable energy technology that uses the ambient warmth of the soil to help keep your home warm.

They can be installed horizontally, meaning the pipes are laid out over a large surface area about a metre under the ground; or vertically, which involves drilling at least one very deep borehole – up to 120 metres. 

Ground source heat pumps are a significant investment, with costs ranging anywhere from £17,000 to £35,000 depending on the system you choose.

Heat pump costs can be significant, but there are grants and schemes available, such as the Boiler Upgrade Scheme, which offers people in England and Wales up to £7,500 towards the cost.

If you live in Scotland, you might qualify for an interest-free loan or a grant to make your home more energy efficient. 

This guide will give you a breakdown on how much heat pumps cost.

Before you apply for a grant, use our calculator to gain a better understanding of the costs you’re likely to incur when installing a ground source heat pump. Select ‘ground source heat pump’ and how big your home is, and it’ll do the rest. 

We also recommend getting specific quotes from heat pump installers, which you can do by filling in our form. Once completed, our trusted suppliers will be in touch.

Ground source heat pump costs

On average, homeowners will spend around £17,000-£35,000 to install a ground source heat pump. 

From here, according to the Renewable Energy Hub UK, you will need to pay for electricity to run the pump and savings will depend on many factors, including the existing fuel and the heating system you’re replacing. 

The cost will largely depend on the type of ground source heat pump you choose, installation costs, the size of the system and how many rooms you have. 

In regards to type, these are the  following ground source heat pumps: 

• Horizontal closed loop – These use water, plus some antifreeze that circulates in narrow diameter piping buried in trenches, up to 2m deep to exchange heat with the adjacent ground
• Vertical closed loop – These use pipes inserted into vertical boreholes up to 200m deep to exchange heat with the ground beside the boreholes
• Pond closed loop – These use pipes submerged in open water to exchange heat with the surrounding water.

A vertical ground source heat pump is typically more expensive because your installer needs to dig further. The average price range is £22,000-£50,000. 

A horizontal ground source heat pump, however, will cost in the region of £16,000-£33,000. This is because installers only need to dig a maximum of 2m so installation costs will be cheaper. 

For more accurate costs, you can fill in our form where our trusted suppliers will reach out with a quote. 

Running costs of owning a ground source heat pump

Once you’ve installed your ground-source heat pump, you’ll need to factor its running costs. For a three-bedroom home, the heat pump running costs will come to around £939 per year. 

To compare, an oil boiler will cost around £1,337 per year to run, and an electric boiler costs around £2,676. 

A gas boiler, according to our calculations, has slightly cheaper running costs, but as you’ll see from the table below, its efficiency is much lower than a heat pump, recording at 95% compared to a ground source heat pump’s 300% efficiency. 

The period to break-even on your ground source heat pump will be difficult to predict, as its depends on a variety of factors, including: 

• The size of your home
• The boiler you’re replacing
• Whether you qualify for the Boiler Upgrade Scheme
• How you will be using the heat 

Ground source heat pump installation costs

Installation costs can increase, but it does depend on the company you use. On average, it could be between £17,000-£50,000, which will include the heat pump itself. 

This can be relieved a little through the Boiler Upgrade Scheme if you live in England and Wales. 

A vertical installation is typically more expensive and is not suitable for properties where a borehole cannot be dug. This is because in some cases, a property’s geology just isn’t compatible with a borehole, like soft clay. 

The timeframe to install a heat pump can be challenging to pinpoint specifically, as this will depend on the company you use and the complexity of your installation. 

As a guide, however, a professional ground source heat pump installer will take between one and two days for a horizontal installation, and five days or more for a vertical installation. This is because of the difference in complexity and logistical challenges of installing pipework several metres below the ground. 

Ground source heat pump savings

Rest assured that while the costs might be high, there are savings to be had. For example, a ground source heat pump has an efficiency of 300%, compared to a gas boiler’s 93% efficiency. 

As mentioned by The Energy Saving Trust, a ground source heat pump will: 

• Lower your energy bills: Switching to a ground source heat pump could save you money compared to other ways of heating your home. 
• Reduce your energy usage: The heat energy delivered to your home by the ground source is more is more than the electricity it uses, you can cut down on your energy usage, boosting your annual savings
• Cut your carbon emissions: Not all savings are financial. Ground source heat pumps are a low carbon heating source, meaning they emit less carbon than gas or oil boilers. 

So when will a ground source heat pump not be the right choice for you? 

• If you plan to move house in the next five years, you might see any profit on return following your investment
• If you don’t have the right amount of space. A typical horizontal ground source heat pump will require 50m2 of ground per kilowatt of power. Vertical installations only need space for the drilling rig, which is no longer than 25cm across. 
• If your insulation isn’t right. Ground source heat pumps work best if your home has high levels of insulation. 
• Think about the kind of heating your home uses. Your home’s heating heat system will have an impact on suitability. If your radiators are too small, then you’ll struggle to heat your home efficiently. 

What are the alternatives to ground source heat pumps?

Ground source heat pumps won’t be the right choice for everyone, but there are other options: 

• A water source heat pump – these work in a similar way to an air source heat pump, except it uses a water source to generate warmth. Suitable water sources for this type of system include: Lakes, rivers and streams, mine water, sea water and aquifers (an underground layer of water-bearing permeable rock). This system will cost around £10,000.
• An air source heat pump – these use the ambient warmth in the outside air  to warm your home – they can even work in temperatures as low as -10°C. Some modes are built to keep warming your home when it drops to -25°C but once the temperature gets this low, they can start to struggle. This system costs around £10,000, on average.

Summary

• The cost will largely depend on the type of ground source heat pump you choose, installation costs, the size of the system and how many rooms you have.
• A vertical ground source heat pump is typically more expensive because your installed needs to dig further. The average price range is £22,000-£50,000. 
• A horizontal ground source heat pump, however, will cost in the region of £16,000-£33,000. This is because installers only need to dig a maximum of 2m so installation costs will be cheaper. 
• For a three-bedroom home, the heat pump running costs will come to around £939 per year. 
• A ground source heat pump has an efficiency of 300%, compared to a gas boiler’s 93% efficiency. 
• If you plan to move house in the next five years, you might see any profit on return following your investment.