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Ground Source Heat Pump Cost in the UK (2025)
- Ground source heat pumps are the most expensive type of heat pump, costing between £11,500 and £29,000.
- These systems could save you up to £2,000 a year, depending on which heating system you replace.
- You can decrease the installation cost of ground source heat pumps with the help of grants like the Boiler Upgrade Scheme, which offers up to £7,500 towards the upfront cost.
Is a ground source heat pump actually worth the investment? You’ve probably seen claims that they can bring down heating bills and cut carbon emissions, but the high upfront cost can feel overwhelming.
Ground source heat pump costs in the UK are between £16,200 and £49,000, which puts them far above a standard gas boiler. Yet, while energy prices rise and ground source heat pump grants cover installation bills, can you afford not to consider one?
This guide takes a closer look at the actual geothermal heating cost, potential long-term savings, and whether a ground source heat pump (GSHP) is a wise choice for your home.
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How much is a ground source heat pump?
The cost of a ground source heat pump ranges between £16,200 – £49,000, including installation. The final price depends on the type of heat pump installation, the complexity of the design, the type of groundwork, its size or output, and the heat pump brand.
Let’s go over the average heat pump costs in the UK for different house sizes:
| Property size | Heat pump size | Cost of a GSHP with horizontal installation | Cost of a GSHP with vertical installation |
|---|---|---|---|
| 1 bedroom | 7kW | £16,000 | £23,000 |
| 2–3 bedrooms | 11kW | £22,000 | £34,000 |
| 4+ bedrooms | 17kW | £31,000 | £49,000 |
As the size of a house increases, the heat pump needs to be more powerful (measured in kilowatts, kW) to effectively heat the space. A smaller home loses less heat and needs less power to stay warm, so a lower-capacity heat pump may be sufficient. Several heat pump manufacturers in the UK offer a wide range of models to suit different property sizes and heating demands.
Horizontal installations are generally less expensive than vertical installations. They involve laying pipes in shallow trenches, while vertical installations require drilling much deeper boreholes.
Ground source heat pumps are eligible for the Boiler Upgrade Scheme in England and Wales, offering a £7,500 grant towards installation.
As startling as it sounds, a ground source heat pump is cost-effective compared to many other heating alternatives.
While water source heat pumps and air source heat pumps come in at a lower upfront cost, GSHPs remain one of the most effective domestic low carbon heating solutions. Thanks to the consistent temperature of the soil throughout the year, your GSHP won’t need to work harder in the winter months to run efficiently.
If you’re not ready to fully replace your boiler with a ground source heat pump, you may 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.
Ground source heat pump running costs
Ground source heat pump running costs vary based on system type and property size. Below is a detailed overview:
| Property size | Heat pump size | GSHP annual running costs |
|---|---|---|
| 1 bedroom | 7kW | £625 |
| 2–3 bedrooms | 11kW | £840 |
| 4+ bedrooms | 17kW | £1,140 |
Keep in mind that there are other factors that impact how high the running costs would be for your home. These factors include:
- Insulation quality: Well-insulated homes retain heat more effectively. Good loft and wall insulation can bring your bills down and help the heat pump run more efficiently all year round.
- Thermostat settings: Cranking the temperature up too high will push your running costs up. A programmable thermostat helps manage this by adjusting the temperature when you’re out or asleep.
- System maintenance: Like any heating system, this one needs to be checked by professionals now and then. Filters should stay clean, and components need to be in good shape. Regular servicing helps avoid small problems turning into expensive ones and keeps the system running as it should.
- Ground loop design: The loop in the ground does most of the hard work, so it needs to be sized and installed properly. If it’s too short or poorly laid out, the system won’t perform well. It’s worth getting professionals who know what they’re doing from the start.
- System type: A high temperature heat pump delivers higher flow temperatures, which can be useful for older homes with existing radiators. However, it uses more electricity than low-temperature models.
Keep in mind that colder climates increase heating demands leading to higher running costs if the system isn’t correctly sized.
For example, ground source heat pumps in Wales must be designed to cope with damp and chilly conditions during long winters, especially in rural or hilly areas where access for horizontal ground loop installation might be limited.
Similarly, ground source heat pumps in Scotland would need to withstand the coldest temperatures in the UK. In the Highlands and northern regions, extended frost periods may require deeper boreholes or more powerful systems to maintain efficiency throughout the season.
Ground source heat pumps in Northern Ireland face consistently wet winters with moderate but prolonged heating demands. In this region, selecting the right insulation and controlling heat loss is essential to avoid overloading the system.
GSHPs are designed to run continuously at low power. Turning them off and on forces them to work harder and raises your energy bills.
Ground source heat pump installation cost
The cost of installing a ground source heat pump ranges between £11,500 and £25,000. This cost excludes the heat pump itself, so the focus is on labour, groundwork, and system setup.
Let’s go over the installation cost range based on typical household situations:
| Installation type | Costs for a small house (1–2 bedrooms) | Costs for a middle house (3–4 bedrooms) | Costs for a large house (5–6 bedrooms) |
|---|---|---|---|
| Horizontal complex retrofit | £14,000 | £20,500 | £28,000 |
| Horizontal new build | £13,500 | £20,000 | £27,000 |
| Horizontal simple retrofit | £10,500 | £16,000 | £23,000 |
| Borehole complex retrofit | £16,000 | £27,000 | £37,000 |
These costs cover ground loop installation, excavation/drilling, piping, connection to the home, and labour. The heat pump unit typically costs an additional £5,000–£10,000, depending on size.
The final ground source heat pump installer cost can increase due to these factors:
- Ground conditions: Rocky or hard soil increases excavation or drilling costs.
- Access to land: Tight or limited access areas may require specialist machinery.
- System size: Larger homes need larger heat pumps and longer loops.
- Heating system compatibility: This may require new radiators or underfloor heating.
- Permits and surveys: Some properties require ground surveys or permits before drilling. It may be necessary for listed buildings or conservation areas.
The cost of heat pump installation will also be affected by installer rates. That’s why it’s best to compare several installers in your area.
Instead of spending days on research and comparisons on your own, why not fill out our 30-second form and let us do the rest? We’ll find you up to 4 free ground source heat pump quotes from trusted installers in your area.
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Ground source heat pump savings
Ground source heat pumps offer long-term savings, especially for homes switching from electric or oil heating. When installed properly and paired with good insulation and smart controls, they can significantly lower annual heating bills.
Let’s talk numbers. Here are the annual ground source heat pump savings based on the type of the replaced system:
| System replaced by GSHP | Annual savings |
|---|---|
| New (A-rated) gas boiler | £90 |
| Old (G-rated) gas boiler | £550 |
| Old electric storage heaters | £2,000 |
| New electric storage heaters | £1,200 |
| Old (G-rated) oil boiler | £600 |
| New (A-rated) oil boiler | £60 |
| Old (G-rated) LPG boiler | £1,100 |
| New (A-rated) LPG boiler | £500 |
| Coal | £1,300 |
Homes with 3 or more bedrooms especially benefit from GSHPs because they have higher heating demands. A well-designed GSHP system can supply this heat efficiently and consistently, especially when paired with underfloor heating or low-temperature radiators.
What determines the cost of a ground source heat pump?
Ground source heat pump costs can quickly rise if you do not take into account the groundwork, system sizing, and property layout. Knowing these early on helps you avoid nasty surprises.
Here’s what tends to drive the price up or down:
- Type of ground loop system: Horizontal loops are cheaper but require more space for trenching. If you're short on space, you'll need to drill down for vertical loops, and that’s where things start to add up.
- Property size and heat demand: Larger properties need bigger systems with longer ground loops. That means more materials, more labour, and a more complex setup. The overall cost rises as the heat demand increases.
- Ground conditions: Soil conditions can either speed things up or slow them right down. Loose, workable soil keeps digging straightforward. But when the ground is rocky, clay-heavy, or waterlogged, the job gets tougher and more expensive.
- Access to land: For horizontal loops, you typically need 2–3 times your home’s floor area in garden space. Vertical systems need much less surface area. Having a large garden for horizontal loops can reduce installation costs.
- Installation type (new-build vs retrofit): It’s easier and cheaper to install a GSHP during a new-build project. Everything can be planned from the ground up. Retrofitting into an older property takes more time since floors might need to be lifted, pipes rerouted, and radiators replaced. All this adds to the final price.
- Heating distribution system: GSHPs work best with low-temperature systems like underfloor heating. Radiator upgrades may be needed in older homes.
- Installer rates and location: Labour costs vary across the UK, and experienced MCS-certified installers may charge more.
Is a ground source heat pump the right choice for your home?
A ground source heat pump can be a smart and future-proof solution if your home is suitable and the system is professionally designed. It offers lower running costs, long-term savings, and excellent energy efficiency.
Another significant point is that ground source heat pumps are very quiet compared to air source systems or traditional boilers. Most ground source heat pump noise comes from the internal unit, which sounds similar to a modern fridge or dishwasher, around 40–50 decibels.
There’s no noisy outdoor fan unit, and the underground pipework is completely silent. That makes GSHPs ideal for noise-sensitive homes or rural areas where low disturbance is important.
However, GSHP is not a cheap or simple system to install.
Things like your garden size, insulation level, and heating needs all play a role. The total cost can vary a lot depending on your ground conditions, home layout, and which installer you choose.
To understand if ground source heat pumps are worth it, it is important to get multiple quotes from qualified heat pump installers. Comparing offers helps you:
- Understand what your home really needs
- Choose the right system size and design
- Avoid paying too much or getting a poor fit
- Make full use of grants like the £7,500 Boiler Upgrade Scheme
There are 2 ways to compare heat pump installers in your area. You can spend hours of your spare time searching for them on your own, or you can fill out our 30-second form and let us do the hard work.
We’ll connect you with up to 4 trusted installers in your area. It is free and could save you thousands over time.
Click below to get started!
- Quotes from local engineers
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- Save £7,500 with BUS grant
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- Ground Source Heat Pump Cost in the UK (2025)
- How much is a ground source heat pump?
- Ground source heat pump running costs
- Ground source heat pump installation cost
- Ground source heat pump savings
- What determines the cost of a ground source heat pump?
- Is a ground source heat pump the right choice for your home?
- FAQ
- Quotes from local engineers
- Payment by finance available
- Save £7,500 with BUS grant