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Ground Source Heat Pump Cost

A ground source heat pump (GSHP) is a clever bit of technology that taps into the Earth's natural warmth to heat your home and hot water. Unlike traditional boilers that burn gas or oil, a GSHP extracts free heat from the ground at a constant temperature, even in winter.

This makes them incredibly efficient, potentially cutting your energy bills by hundreds of pounds a year*. Plus, as they don't rely on fossil fuels, GSHPs significantly reduce your carbon footprint, helping you be kinder to the environment.

*Statistics suggest savings of at least £200 and possibly as much as £2,200 per year!

Before committing yourself to investing in this technology, you'll want to know more about the costs involved and whether they are worthwhile.

So, check out the Heat Pump Gang guide to ground source heat pump costs to discover all the information you need!

Ground Source Heat Pump 1

Heat Pump Installation Costs

We'll begin with the biggest investment: the upfront cost of heat pump installation.

Now, these can be high, compared with the cost of replacing an old gas boiler, but it's important to understand the whole process before making a judgment.

There are two types of ground source heat pumps to choose from, although this decision might be taken out of your hands for practical reasons that we'll explain in a moment.

Uncover more: Air Source Heat Pump Cost

The Ground Loop

The ground loop is a crucial part of a ground source heat pump system, acting like a giant underground radiator. This is where the GSHP extracts heat from the earth. There are two main ways to install a ground loop: horizontal and vertical. Each has its pros and cons, particularly regarding installation costs.

Horizontal GSHP 

This method involves burying pipes in a network of trenches across your property. The trenches are typically shallower, ranging from 1 to 2 metres deep. This makes horizontal GSHP systems generally cheaper to install compared to vertical systems. 

Here's why horizontal GSHP installations might be a good choice: 

  • Cost-effective - They require less excavation work, leading to a lower overall price tag. You can expect a horizontal GSHP system installation to cost anywhere from £16,200 to £31,000, depending on factors like the size of your property and the complexity of the trench network. 

However, there's a catch: 

  • How much land do you have? - Horizontal GSHP systems require a significant amount of garden space! The pipes need to be spread out over a large area, typically two to three times the size of your property. This might not be feasible for smaller gardens or urban areas. 

Vertical GSHP 

For properties with limited space, a vertical ground loop might be the answer. This method involves drilling deep boreholes, typically ranging from 50 to 100 metres (or more) down into the ground. While this is a more space-saving option, it comes with a higher price tag. 

Here's a breakdown of vertical GSHP installations: 

  • Space-efficient - Vertical borehole installation takes up minimal surface area, making them ideal for smaller gardens or properties with limited space. 
  • Higher Cost - Drilling deep boreholes requires specialised equipment and expertise, pushing the cost of installation upwards. Expect a vertical GSHP system to set you back somewhere between £23,200 and £49,000. 
Heat Pump Installation Costs

Choosing The Right Option 

The best ground loop option for your property depends on several factors, including: 

  • Available Land. If you have a large garden, a horizontal GSHP system might be the most cost-effective solution. 
  • Ground Conditions. The type of soil on your property can also influence the choice. Vertical boreholes might be preferable in areas with rocky terrain. 
  • Budget. Of course, your budget plays a significant role! Consider the upfront installation cost alongside the potential long-term savings on your energy bills. 

Consulting A GSHP Installer 

It is crucial to get a professional assessment from a qualified GSHP installer, like Heat Pump Gang. We can evaluate your property, recommend the most suitable ground loop option, and provide a more accurate cost estimate based on your specific needs. 

Some heat pump installers charge additional digging costs, so always double check what's included in the contract.

Other Factors Affecting GSHP Installation Costs

Whichever type you choose, you must consider all the factors that may affect the overall cost of heat pump installation.

Here are a few that you should be aware of...

Property Size And Heat Demand 

The size of your property and its heating requirements directly affect the size and complexity of the ground source heat pump system needed. Larger homes with higher heating demands will require a more powerful GSHP unit and a larger ground loop to extract sufficient heat. This translates to a higher installation cost compared to a smaller property with lower heating needs. 

Ground Conditions (Drilling Difficulty) 

The type of ground on your property significantly impacts the difficulty and cost of installing the ground loop. Drilling boreholes for a vertical loop system is easier in areas with soft, loose soil. However, encountering rocky terrain or dense clay can require specialist equipment and take longer, driving up the installation costs. 

Other Factors Affecting GSHP Installation Costs

Existing Heating System 

The type of central heating system you currently have in place can also influence the installation process and cost. Replacing an older, inefficient boiler might involve additional work to adapt the system to work with the GSHP.

Conversely, if you have a relatively new and compatible heat distribution system, the integration might be smoother, potentially reducing installation costs. 

Ground source heat pumps work extremely well with underfloor heating. If you already have this feature, a professional heat pump installer will ensure that it is connected properly. However, those without an underfloor heating system fitted will need to consider the cost of having one installed.

If underfloor heating is not an option, you may need to upgrade your existing radiators to cope with the lower flow temperature.

Installer Experience And Location 

The experience and expertise of the GSHP installer you choose can play a role in the final cost. Reputable heat pump installers with a proven track record in GSHP installations might command a slightly higher premium but will likely ensure a smooth, efficient installation process.

Additionally, installer location can impact costs. Installers in high-demand areas or those with limited local competition might have slightly higher rates compared to those in more rural areas. 

Consulting A GSHP Installer

Heat Pump Running Costs

Ground source heat pumps are renowned for their energy efficiency, translating to potentially significant savings on your energy bills compared to traditional heating systems. But how much does it actually cost to run a GSHP? Let's explore the factors that influence the costs of running the heat pump to see what you can expect. 

The Efficiency Advantage 

Unlike gas or oil boilers that generate heat by burning fuel, GSHPs extract free heat from the ground. Ground temperatures are stable and fairly constant all year round, even in winter. The GSHP uses a small amount of electricity to boost this extracted heat to the desired temperature for your home's heating and hot water needs. 

Since the majority of the heat comes from a free source (the ground), GSHPs are incredibly efficient. They require less electricity to operate than traditional boilers, which significantly reduces running costs. 

Factors Affecting Running Costs 

While ground source heat pumps boast impressive efficiency, several factors can influence your overall costs: 

  • Existing Heating System - Replacing an older, inefficient boiler with a GSHP will likely lead to the most significant savings. Newer, more efficient boilers might offer a smaller difference in running costs compared to a GSHP. 
  • Property Size and Insulation - Larger homes with higher heating demands will naturally consume more energy, impacting running costs. However, good insulation can significantly improve efficiency and lower costs. 
  • Electricity Tariffs - The cost per unit of electricity you pay will affect your running costs. Look for suppliers with competitive rates. 
  • Ground Loop Design - The efficiency of the ground loop system (horizontal or vertical) can influence how much heat the GSHP extracts, impacting energy use. 

Estimated Savings 

Predicting the exact amount you'll save with a GSHP is difficult, due to the above factors. However, estimates suggest a typical UK household could see annual running cost savings of £200 to £500 compared to traditional heating systems.

In some cases, particularly when replacing older boilers, savings can be even higher, reaching up to £1,000 or more per year. 

Heat Pump Running Costs

Maintenance Costs

GSHPs are renowned for their reliability and require minimal maintenance compared to traditional boilers. However, to ensure they continue to operate at peak efficiency and deliver optimal performance for years to come, it's wise to get them serviced by a qualified engineer every one or two years.  

Here's a closer look at the benefits... 

Maintaining Efficiency 

Regular servicing helps identify and address any potential issues that could hinder the GSHP's ability to extract heat effectively. This proactive approach keeps your system running smoothly and efficiently, potentially leading to lower energy consumption and reduced running costs in the long run. 

Extending Lifespan 

Just like any piece of machinery, regular maintenance helps prevent minor problems from developing into more serious issues that could shorten the lifespan of your GSHP. By catching and addressing potential problems early on, a yearly service can significantly extend the life expectancy of your system, saving you money on costly replacements down the line. 

Peace Of Mind 

Knowing that your GSHP is in tip-top condition thanks to a yearly service provides valuable peace of mind. You can rest assured that your heating system is operating efficiently and reliably, keeping your home warm and comfortable throughout the year. 

Warranty Compliance 

Many GSHP manufacturers require annual servicing by a qualified engineer to maintain warranty coverage. Skipping these services could invalidate your warranty, leaving you responsible for any repairs that might arise during the warranty period.  

The average cost of heat pump servicing is between £150 and £300, depending on the type, brand, and size of heat pump. Bear in mind that repairs, such as replacing a large component, can be as much as £2,000, so it’s in your best interests to keep them in great condition! 

Also, it's been pointed out that the cost of annual servicing for a ground source heat pump is more than that for traditional gas boilers. While this is true, a well-maintained heat pump system will last for between 20 and 30 years!

Choosing A Qualified Engineer 

Ensuring the service is carried out by a qualified and experienced engineer with expertise in GSHP systems is crucial. Look for engineers accredited by a reputable body like the Microgeneration Certification Scheme (MCS). They will have the knowledge and skills to perform a thorough inspection, clean the system, and ensure everything is functioning optimally. 

While GSHPs require minimal maintenance, a yearly service by a qualified engineer is a worthwhile investment. It helps maintain efficiency, extends the lifespan of your system, and provides peace of mind. This proactive approach can ultimately lead to lower running costs and a more reliable heating system for your home. 

Maintenance Costs

Financial Incentives

If all these figures seem alarmingly high and perhaps beyond your budget, you might be interested to know that government grants are available to ease the financial burden!

The biggest of these is the Boiler Upgrade Scheme, where eligible households receive £7,500 towards the cost of heat pump installation.

You can find out more about this on our blog, Ground Source Heat Pump Grants, but, in most cases, the government will provide these funds to help homeowners replace their old gas or oil boiler.

Another bonus for consumers relates to VAT, so let's explore this in more detail...

The UK government has implemented a temporary tax relief measure for ground source heat pumps! Until March 2027, you will pay 0% VAT on the purchase of a GSHP system. This means you won't be charged the standard 20% VAT on the cost of the GSHP unit itself, potentially leading to significant savings on the upfront installation cost. 

How It Benefits You 

Let's say, for example, the pre-VAT cost of a GSHP system is £15,000. With the standard 20% VAT rate, you would have to pay an additional £3,000 in VAT, bringing the total cost to £18,000. However, with the current 0% VAT rate for GSHPs, you would only pay the base price of £15,000. This translates to a potential saving of £3,000, making GSHP installations more financially attractive for homeowners. 

Important Considerations 

This 0% VAT rate is a temporary measure and is currently scheduled to end in March 2027. If you're considering a GSHP, taking advantage of this tax break before it expires could lead to significant cost savings. 

It's essential to remember that the 0% VAT rate only applies to the GSHP unit itself. The cost of installing the ground loop system (trenches or boreholes) will still be subject to the standard VAT rate. 

Financial Incentives

Ground Source Heat Pump Vs. Air Source Heat Pump

When it comes to your budget, it's tempting to choose the cheaper option, and air source heat pumps are generally less expensive than their ground source counterparts.

However, this needs careful thought, as air source heat pumps aren't always the best choice for everyone.

Both ground source heat pumps and air source heat pumps are popular options, but they differ in how they extract heat and their overall costs. Here's a breakdown to help you decide which might be a better fit for you: 

Efficiency 

  • Ground Source Heat Pump - Better in cold climates! GSHPs tap into the constant ground temperature, which remains relatively warm year-round. This means they can extract heat efficiently even during winter. Less energy is needed to boost this extracted heat to a comfortable temperature for your home, leading to impressive efficiency. 
  • Air Source Heat Pump - ASHPs are reliant on air temperature, extracting heat energy from the outside air. While they work well in moderate climates, their efficiency drops significantly when the air gets colder. This is because more energy is required to raise the cooler air temperature to a usable level, impacting their efficiency in winter. 

Cost 

  • Upfront Installation - GSHPs typically have a higher upfront cost compared to ASHPs. This is because installing the ground loop system (horizontal trenches or boreholes, as explained above) for a GSHP involves more excavation work. 
  • Running Costs - Despite the higher initial investment, GSHPs often boast lower running costs over time. Their superior efficiency in extracting heat translates to less electricity used, potentially saving you hundreds of pounds a year on your energy bills. 
  • Maintenance - Both GSHPs and ASHPs require minimal maintenance, typically just a yearly service. However, GSHPs might have slightly lower maintenance costs due to their less exposed location compared to ASHPs mounted outside. 

Choosing The Right Option 

The best choice for you depends on your priorities and climate. Here’s an overview of the main points to consider:  

  • If efficiency and long-term savings are top priorities, and you live in a region with cold winters, a GSHP might be a worthwhile investment despite the higher upfront cost. 
  • If budget is a major concern, and you live in a climate with mild winters, an ASHP could be a good option. However, be aware that running costs might be higher, particularly in colder months. 
  • Government Grants - Financial incentives are available for both GSHPs and ASHPs to help with installation costs, making them a more attractive proposition.  
  • Property Size and Insulation - Both GSHP and ASHP efficiency can be impacted by your home's size and insulation levels. A well-insulated home will require less energy to heat, regardless of the system you choose. 
Ground Source Heat Pump Vs. Air Source Heat Pump

Are Ground Source Heat Pumps A Wise Investment?

Looking at the above facts regarding the heat pump installations, it's tempting to believe that we're financially better off with fossil fuel boilers. This seems to be the general consensus among the UK public, with opinion polls suggesting that the majority of homeowners have no interest in purchasing a heat pump of any type.

Nevertheless, this view doesn't take into account all of the facts about these amazing devices.

At Heat Pump Gang, we are convinced that ground source heat pumps are a wise and worthwhile long term investment. And that's the key word; long term.

When you evaluate all of the benefits, it becomes clear that heat pumps offer a way forward for consumers to take advantage of reliable and highly efficient renewable energy sources.

We'll end this guide with a list of as many positives as possible to highlight the benefits of heat pumps in general but with a focus on ground source heat pumps...

  • End Fossil Fuel Reliance. Unlike traditional boilers that rely on a gas supply, GSHPs are powered by electricity and tap into the Earth's constant ground temperature. This eliminates dependence on volatile gas prices and potential supply disruptions. 
  • Highly Efficient. GSHPs excel at extracting free heat from the ground, even in winter. This translates to low running costs compared to other heating systems. The efficiency is further enhanced in well-insulated houses, as less energy is required to maintain a comfortable temperature, leading to even lower heating bills. 
  • Heating and Cooling in One System. While most heating systems only provide heat, GSHPs can also act as a passive cooling system in moderate climates. They can reverse their operation, transferring heat from your home to the cooler ground, offering a natural cooling effect without the need for a separate air conditioning unit. For very hot climates, some GSHPs can also offer active cooling with additional equipment. 
  • Low carbon heating system. GSHPs are a green energy solution. They use renewable energy from the ground and produce minimal carbon emissions compared to gas boilers or other fossil fuel-based heating systems. This makes them a perfect choice for homeowners who want to reduce their carbon footprint and contribute to a cleaner environment. 
  • Long-Term Savings on Your Energy Bills. The initial investment cost of a GSHP might be higher compared to traditional boilers. However, their exceptional efficiency and low running costs lead to significant savings on your energy bills over time. These long-term savings can easily offset the initial investment, making GSHPs a financially sound choice. 
  • Minimal Maintenance Needs. GSHPs are renowned for their very little maintenance requirements. Unlike gas boilers that might require regular servicing, GSHPs typically only need a yearly service by a qualified engineer. This translates to less hassle and lower maintenance costs in the long run. 

When you see these advantages laid out in black and white, it's clear that heat pumps will play a major role in tackling climate change and delivering bigger energy savings to UK Consumers.

And that's excellent news for us all!

The Heat Pump Gang team is proud to be part of this transition to green energy. We're here to provide professional advice and installation whenever you need us.

Take a look: Heat Pumps And Solar Panels

Are Ground Source Heat Pumps A Wise Investment
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