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Ground Source Heat Pumps

Heat drawn from pipes buried in the ground, with a £7,500 Boiler Upgrade Scheme grant in England and Wales (£9,000 for eligible off-gas homes on oil or LPG)

£7,500 BUS Grant Around 300% Efficient 0% VAT Until March 2027
Step 1 of 2What you need

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Tell us about the job and we’ll find up to 3 local heat pump installers who cover your area and ask them to contact you with a quote. Free, no obligation.

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What is a Ground Source Heat Pump?

Ground source heat pumps (GSHPs) extract heat from the ground using pipes buried in your garden or land. Below the surface, the ground temperature stays fairly steady all year, which helps the heat pump keep working well in winter.

The Energy Saving Trust says a ground source heat pump produces around three units of heat for every unit of electricity it uses. How much you save depends heavily on the system you replace; see the running costs below.

Why Choose Ground Source Heat Pumps?

High Efficiency

Around three units of heat for every unit of electricity (Energy Saving Trust)

£7,500 BUS Grant

£7,500 off the price in England and Wales, or £9,000 for eligible off-gas homes heated by oil or LPG until 31 March 2027

Running Costs

Around £130–£650 a year saved replacing a gas boiler, and more replacing LPG or storage heaters (EST)

0% VAT

No VAT on installed ground source heat pumps, including groundworks, until 31 March 2027, then 5%

No Outdoor Fan Unit

The heat pump sits indoors, so there is no fan unit outside

Lower Carbon

Around 3,500–5,200 kg less CO2 a year than a gas boiler in a four-bed detached home (EST)

How Ground Source Heat Pumps Work

1

Ground Loops

Pipes buried in trenches or boreholes collect heat from the ground

2

Heat Exchange

Antifreeze fluid absorbs ground heat and returns to pump

3

Amplify Heat

The heat pump raises it to a useful temperature

4

Warm Home

Heat distributed via underfloor or radiators

Installation Options

Horizontal Trenches

Pipes laid in trenches across a garden or field

  • Needs a large area of land
  • Lower installation cost
  • No deep drilling needed
Around £15,000
Typical cost before the grant (Energy Saving Trust)

Vertical Boreholes

Deep boreholes drilled into the ground

  • Needs much less land than trenches
  • Needs access for a drilling rig
  • Better for small gardens
Considerably more
Than trenches, says the Energy Saving Trust; a site survey sets the price

Ground Source Heat Pump Costs

£18,136–£42,110
Middle half of Boiler Upgrade Scheme installs, April–June 2026, including the grant value (median £27,232)
-£7,500
BUS grant, taken off your quote (£9,000 for eligible off-gas homes on oil or LPG, until 31 March 2027)
Around £15,000
Energy Saving Trust typical cost with trenches; boreholes cost considerably more
£130–£650/year
Estimated saving replacing a gas boiler (most to least efficient old boiler)
Replacing an oil boiler
£50–£600/year
Replacing LPG: £750–£1,500/year. Storage heaters: £1,400–£2,100/year

Typical costs, last reviewed September 2026. Sources: DESNZ Boiler Upgrade Scheme statistics (April–June 2026) and Energy Saving Trust (well-insulated four-bed detached home, July 2026 prices). Your costs depend on your home, land and installer.

UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body and cannot decide who gets funding — check eligibility with the official scheme on GOV.UK.

Quick Grant Finder

Answer up to three quick questions to see which schemes may be worth checking

Is Ground Source Right for You?

✓ Perfect For

  • Large gardens, or room for borehole drilling
  • Well-insulated homes
  • Long-term investment mindset
  • Rural properties off gas grid
  • Self-builds or major renovations (most new builds can't get the grant)

⚠ Consider Carefully

  • Higher upfront cost than air source
  • Requires suitable garden access
  • Longer, more disruptive installation
  • May need planning permission

Thinking About Ground Source?

Send a free enquiry and Better Home Hub will try to introduce ground source installers near you. Check any installer on the MCS register before you agree to work.

Send a Free Enquiry