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Last updated: 6 May 2024

Ground Source Heat Pump Costs in the UK (2024)

Ground source heat pump costs
  • Installing a ground source heat pump can cost anywhere from £16,200 to £49,000. However, after your investment, you can expect to save up to £1,900 per year on your heating bills.
  • By applying for the Boiler Upgrade Scheme, you can receive up to £7,500 to install a ground source heat pump.
  • The biggest advantage of a ground source heat pump is that it has lower running costs than traditional heating systems, with annual costs ranging from £617 - £1,404.

Have you decided that you want to install a ground source heat pump (GSHP), but have no clue how much this will cost you? In this article, we will walk you through current ground source heat pump costs to give you an indication of the expenses you can expect from your heat pump installation. 

How much ground source heat pumps cost in the UK depends primarily on the kind of installation you choose: a vertical or a horizontal one. Because it requires more extensive groundwork, a vertical installation is more expensive (between £23,000 and £49,000). A horizontal installation has somewhat lower costs, which range from £16,200 to £31,000

To make sure that you’re not overspending when it comes to ground source heat pump installation costs, you should compare several installers and their fees. Thankfully, you don’t have to go through this process alone. With our help, you can receive free, non-binding quotes from up to 4 heat pump installers in your area in no time. Just click below to get started now! 

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Cost of ground source heat pumps in the UK

Ground source heat pump costs range from £16,200 - £49,000. Compared to air source heat pump costs, the prices are higher, both in terms of supply and installation. However, as we will discuss later as well, the savings with a GSHP are also significantly higher. 

The primary factors that affect the total costs of a ground source heat pump are the output size and type of heat pump installation you choose. Below you can find an overview of the costs of a horizontal and vertical ground source heat pump installation for different output sizes: 

GSHP Costs With a Horizontal Installation
Household SizeHeat Pump Output SizeEstimated Supply CostEstimated Installation CostEstimated Total Cost
1 bedroom8kW£13,200£3,000£16,200
2-3 bedrooms12kW£14,850£7,500£22,350
4+ bedrooms16kW£19,000£12,000£31,000
GSHP Costs With a Vertical Installation
Household SizeHeat Pump Output SizeEstimated Supply CostEstimated Installation CostEstimated Total Cost
1 bedroom8kW£13,200£10,000£23,000
2-3 bedrooms12kW£14,850£20,000£34,850
4+ bedrooms16kW£19,000£30,000£49,000

Ground source heat pump running costs

One of the primary advantages of heat pumps is that they involve reduced running costs compared to old heating systems. Here is a rundown of the annual running costs of GSHPs of different output sizes:

Ground Source Heat Pump Running Costs
Household SizeHeat Pump Output SizeEstimated Yearly Running Costs
1 bedroom8kW£617 - £740
2-3 bedrooms12kW£906 - £930
4+ bedrooms16kW£1,270 - £1,404

Ground source heat pump installation cost

The cost of a ground source heat pump is heavily influenced by the kind of installation you opt for. As we’ve mentioned, horizontal groundwork costs less than a vertical installation.

This is because a horizontal GSHP installation also requires between 1 - 3 boreholes in order to reach deep into the ground so that your heat pump can extract geothermal energy. Below you can find an indication of how much a vertical ground source heat pump costs. 

Vertical GSHP Installation Costs
Heat Pump Output SizeNumber of Boreholes RequiredEstimated Borehole CostsEstimated Total Installation Costs
8kW1 - 2£8,000 - £10,000£10,000
12kW2£12,000 - £18,000£20,000
16kW2 - 3£16,000 - £24,000£30,000

A horizontal GSHP installation, on the other hand, is slightly less complex, as it only needs trenches that are about 1.2 metres deep. The larger your heat pump, the higher the cost of your installation will be, as you’ll be paying for the digging per square metre. 

Below, we’ve provided some estimates of the cost of ground source heat pump installation if you opt for horizontal groundwork: 

Horizontal GSHP Installation Costs
Heat Pump Output SizeEstimated Trench Space RequiredEstimated Groundwork CostsEstimated Total Installation Costs
8kW300 metres£3,000£3,000
12kW500 metres£5,000£7,500
16kW650 metres£6,500£12,000

While a horizontal installation is a cheaper option, it’s important to note that they take up significantly more space than vertical groundwork. So, be sure to consider this aspect, as well as your budget, when trying to calculate the cost to install a ground source heat pump. 

For the most up-to-date information regarding heat pump installation costs, you should consult a reliable heat pump installer. Instead of wasting hours on endlessly googling local professionals, simply fill in our 30-second form. We’ll then send you quotes from up to 4 installers, which you can compare to secure the best deal for your home.

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Ground source heat pump maintenance costs

Ground source heat pump maintenance costs range somewhere between ​​£200 and £350. Fortunately, you only need to have your heat pump serviced once every 2 - 3 years. 

This way, you can ensure that your ground source heat pump can operate efficiently for the duration of its 25-year lifespan. Additionally, regular maintenance helps you avoid mounting repair costs, as any damage can be addressed immediately when a professional is servicing your system. 

Equipment vs non-equipment costs

The total ground source heat pump cost can be broken down into equipment and non-equipment costs. Generally, the equipment costs of a ground source heat pump are higher than non-equipment.

However, depending on the output size of your heat pump, the non-equipment costs of a vertical installation will be higher. The equipment costs of a 12kW and 16kW heat pump are £14,850 and £19,000, respectively. The non-equipment costs, however, are £20,000 and £30,000. 

Below, you can find a breakdown of the different components that contribute to the total equipment and non-equipment costs of a ground source heat pump:

GSHP equipment and non-equipment costs

Ground source heat pump savings

Once you install a ground source heat pump, you will start noticing savings ranging from £50 to £1,900 on your yearly heating bills. Exactly how much you’ll save depends on your household’s energy consumption habits and on what kind of heating system you’re replacing with a ground source heat pump. 

You can consult the following table for an indication of the savings you can expect when switching from traditional energy systems to a ground source heat pump:

Estimated GSHP Savings
Energy System Being ReplacedEstimated Yearly Savings
Gas boiler (A-rated)Up to £50
Gas boiler (G-rated)Up to £480
Old (G-rated) oil boilerUp to £690
Old LPG boilerUp to £990
Old electric storage heatersUp to £1,900
New electric storage heatersUp to £1,200

As you can see, the highest savings come from replacing old electric storage heaters with a ground source heat pump. If this applies to you, take a look below to see what you can expect in terms of breaking even on your investment in a GSHP:

GSHP Savings and Break-Even Point
GSHP Installation TypeEstimated Total Installation CostsEstimated Savings from Replacing Old Electric Storage HeatersBreak-Even Point
Horizontal groundwork£16,200 - £31,000Up to £1,9008.5 - 16 years 
Vertical groundwork£23,000 - £49,000Up to £1,90012 - 25.5 years

Considering that ground source heat pumps can operate efficiently for about 25 years, you can still enjoy all the financial benefits that come with this heating system for years after you’ve broken even on your investment. That is, if your annual savings are this high.  

If you expect that your installation costs will be at the higher end of the price range and your savings might be lower, be sure to make some calculations to determine when you’ll break even on your investment. You should also consult a professional who can offer you tailored advice to help you decide whether it’s worth installing a ground source heat pump for your home.

Ground source heat pump grants

GSHP grants

Currently, there are several ground source heat pump grants available in the UK. These are: 

  • Boiler Upgrade Scheme: Homeowners in England or Wales can apply for this grant to receive up to £7,500 to lower their ground source heat pump installation cost.
  • Energy Company Obligation Scheme (ECO4): Low-income households in England, Scotland, and Wales can make use of this scheme and receive anywhere between £7,000 and £20,000 to install a ground source heat pump. 
  • Home Energy Scotland: With this scheme, homeowners in Scotland can receive funding of up to £15,000 to invest in a ground source heat pump. This consists of a grant of £7,500 and an optional interest-free loan of £7,500
  • Warmer Homes Scotland: This interest-free loan is accessible to homeowners in Scotland. They can receive up to £10,000 to reduce the cost of installing a ground source heat pump. 
  • Warm Homes Programme Wales: By applying, homeowners in Wales can receive partial or full funding for a ground source heat pump installation. 
  • 0% VAT: Across the UK, those installing a ground source heat pump can benefit from a VAT reduction that can lead to savings of up to £2,450.

Is a ground source heat pump the right choice for my household?

If you’re looking to reduce your home’s carbon emissions and lower your yearly energy bills, saving up to £1,900 per year, then yes, a ground source heat pump may be the right choice for you! 

However, if you’re still on the fence or worry about how much ground source heat pumps cost, you will want to consult a professional who can help you determine whether this investment is the right one for you. Yet, with so many options to choose from, it can be overwhelming to find an installer you can trust. But don’t worry - we’re here to help you with that. 

We’ve thoroughly vetted multiple heat pump installers operating across the UK and can put you in touch with up to 4 of them in no time. Just fill in our 30-second form and sit back and relax while the installers reach out to you with free, non-binding quotes for their services. 

This way, you can find a reliable professional and secure the best deal for your ground source heat pump at the same time. Just click below to get started now!

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