Grant and rates checked 22 October 2026 on GOV.UK and Ofgem. Cost inputs are examples; use your MCS installer’s quote. Excludes maintenance and price changes.
Formula and breakdown
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This ground source heat pump cost calculator estimates the installed cost of a ground source heat pump with horizontal trenches or a vertical borehole, subtracts the Boiler Upgrade Scheme grant, and compares yearly running costs with your current gas, oil or LPG boiler to give a simple payback, for homeowners in England and Wales. Every cost input is an example value that you replace with your installer’s figures, and you can enter a full quote instead.
Quick answer: A ground source heat pump cost calculator adds the heat pump, fitting and ground loop costs, then subtracts the £7,500 Boiler Upgrade Scheme grant. The Energy Saving Trust puts a trenched system at about £15,000, so the example comes to £7,500 after the grant. Boreholes cost considerably more. Running cost is heat demand divided by SCOP times your electricity rate.
What Is a Ground Source Heat Pump Cost Calculator?
A ground source heat pump cost calculator is a tool that totals what a ground source system will cost to install, takes off any grant, and then checks how much it costs to run against the boiler it replaces. In plain words: installed cost equals the heat pump and indoor work plus the ground loop (length times cost per metre) plus extras; your cost equals installed cost minus grant; and payback equals your cost divided by the yearly saving.
A ground source heat pump takes low temperature heat from pipes buried in the garden, either in trenches or in a borehole, and raises it to heat radiators and hot water. The Energy Saving Trust guide to ground source heat pumps says heat pumps generate about three units of heat for every unit of electricity they use, which is why running cost depends so much on efficiency.
How Do You Use the Ground Source Heat Pump Cost Calculator?
- Choose horizontal trenches or a vertical borehole. The example length and cost per metre change with the choice.
- Replace the example costs with the figures from your quote: the heat pump and fitting, the ground loop length or borehole depth and its cost per metre, and any extras such as radiators or a cylinder.
- If you have a single quote total, enter it in “Your quote total” and the build-up is ignored.
- Choose the grant that applies, and add the cost of any boiler you would otherwise have to replace soon.
- Enter your yearly heat demand, the SCOP from your quote, your electricity rate, and your current fuel, price and boiler efficiency.
- Read your cost after grant, the yearly saving and the payback, then open the breakdown to check each line.
How Much Does a Ground Source Heat Pump Cost in the UK?
The Energy Saving Trust says installing a ground source heat pump is typically around £15,000 if the ground loop is buried in trenches, and that a borehole makes it considerably more. The final price depends on your home’s heat loss, the ground, access for diggers or drilling rigs, and how many radiators need changing.
Prices from installers vary widely, so this ground source heat pump cost calculator does not present trade survey averages as fact. Instead it splits the cost into the parts that drive it, so you can see how a longer trench or a deeper borehole changes the total. The Department for Energy Security and Net Zero also publishes monthly Boiler Upgrade Scheme statistics covering voucher numbers and installation costs, which are worth checking against your quote.
| Cost part | What sets it | Example value in the tool |
|---|---|---|
| Heat pump, fitting and indoor work | Heat pump size from the heat loss survey, cylinder, pipework, controls | £9,000 |
| Horizontal ground loop | Trench length, digging conditions, garden reinstatement | 200 m x £30 = £6,000 |
| Vertical borehole | Total depth drilled, geology, rig access | 200 m x £60 = £12,000 |
| Extras | Larger radiators, underfloor heating, electrical work | £0 |
| Grant (England and Wales) | Boiler Upgrade Scheme | £7,500, or £9,000 for oil or LPG homes with no mains gas until March 2027 |
With these examples, the trenched system totals £15,000, matching the Energy Saving Trust figure, and the borehole system totals £21,000, or £13,500 after the standard grant. Replace every example in the ground source heat pump cost calculator with your own quote.
How Much Is the Boiler Upgrade Scheme Grant for a Ground Source Heat Pump?
The Boiler Upgrade Scheme gives £7,500 towards a ground source heat pump in England and Wales, including water source heat pumps and systems on shared ground loops. GOV.UK says that until March 2027 you can get an additional £1,500 towards an air source or ground source heat pump if your property is heated by oil or LPG and has no mains gas connection.
The GOV.UK Boiler Upgrade Scheme page also states there is one grant per property, no grant for hybrid systems that combine a gas boiler and a heat pump, and a capacity limit of 45 kWth for an individual system. The ground source heat pump cost calculator applies the grant you choose and caps it at the installed cost. Scotland and Northern Ireland have different arrangements.
VAT is also low. HMRC’s notice on energy-saving materials says installing a ground source heat pump in residential accommodation is zero rated from 1 May 2023 to 31 March 2027, and reverts to the reduced rate of 5% from 1 April 2027.
Is a Ground Source Heat Pump Cheaper to Run Than Gas?
It can be, but at October 2026 prices the saving is modest unless the system is efficient. With the Ofgem cap rates of 26.32p per kWh for electricity and 7.97p per kWh for gas, a heat pump with a SCOP of 3.5 costs about £902 a year to supply 12,000 kWh of heat, against about £1,125 for an 85% efficient gas boiler.
| SCOP | Heat pump cost a year | Saving against gas, boiler 85% | Payback on £7,500 | Payback if gas is disconnected |
|---|---|---|---|---|
| 3.0 | £1,053 | £72 | 103.6 years | 41.5 years |
| 3.5 | £902 | £223 | 33.7 years | 22.7 years |
| 4.0 | £790 | £336 | 22.3 years | 16.9 years |
| 4.5 | £702 | £423 | 17.7 years | 14.1 years |
The last column, which the ground source heat pump cost calculator can reproduce with its standing charge field, adds the gas standing charge of 29.68p per day, about £108 a year, which you stop paying if you remove the gas supply. If your home uses oil or LPG, choose that fuel and enter your own price per kWh to test the saving. For more detail on electricity against gas, see the heat pump running cost calculator.
Worked Example: An Off-Gas Home With a Borehole
Example: a detached rural house heated by an oil boiler, with no mains gas, needing 18,000 kWh of heat a year. The quote is for a borehole system with a SCOP of 4.0, and the old oil boiler would otherwise need replacing soon.
- Installed cost (example values): £9,000 heat pump and fitting + 200 m x £60 drilling (£12,000) + £2,500 radiators = £23,500.
- Grant: £7,500 plus the £1,500 oil and LPG addition until March 2027 = £9,000. Cost after grant: £14,500.
- Heat pump running cost: 18,000 / 4.0 = 4,500 kWh x 26.32p = £1,184 a year.
- Oil boiler at 80% and an example 9p per kWh: 18,000 / 0.8 = 22,500 kWh x 9p = £2,025 a year.
- Saving: £2,025 minus £1,184 = £841 a year. Payback after deducting a £3,000 replacement boiler avoided: (£14,500 minus £3,000) / £841 = 13.7 years.
The ground source heat pump cost calculator gives the same result with these inputs. To see how much of the heat pump’s electricity solar panels could cover, try the solar panel calculator, and for sizing the unit see our heat pump size calculator.
Who Should Install a Ground Source Heat Pump?
For the Boiler Upgrade Scheme, GOV.UK says to get quotes from MCS certified installers, and the installer applies for the grant on your behalf on the Ofgem website. The heat demand and SCOP on their quote are the right figures to put into this ground source heat pump cost calculator.
The electrical supply to the heat pump must be installed by a qualified electrician to BS 7671. If you also remove a gas boiler and cap the gas supply, that work must be done by a Gas Safe registered engineer.
Frequently Asked Questions
How much does a ground source heat pump cost to install?
The Energy Saving Trust says about £15,000 for a system with the ground loop in trenches, and considerably more with a borehole. The Boiler Upgrade Scheme then takes £7,500 off in England and Wales. Your own price depends on heat loss, ground conditions, access and radiator changes.
Is a borehole or horizontal ground loop cheaper?
A horizontal loop in trenches is usually cheaper, and the Energy Saving Trust says a borehole costs considerably more. The Energy Saving Trust notes that you need suitable outdoor space for ground loops or boreholes. Enter both options in the calculator with your installer’s prices.
What grant can I get for a ground source heat pump?
In England and Wales the Boiler Upgrade Scheme gives £7,500. Until March 2027 there is an extra £1,500 if your home is heated by oil or LPG and has no mains gas connection. Hybrid heat pump and gas boiler systems do not qualify.
How much does a ground source heat pump cost to run?
Divide your yearly heat demand by the SCOP, then multiply by your electricity rate. For 12,000 kWh of heat at a SCOP of 3.5 and 26.32p per kWh, that is about 3,429 kWh of electricity, or £902 a year, before any standing charge.
What is the payback on a ground source heat pump?
It depends mostly on efficiency and on the fuel you replace. In the examples on this page, replacing gas gives 17.7 to over 100 years, while replacing oil in a larger off-gas home gives about 13.7 years. A high SCOP and dropping the gas standing charge shorten it.
Is VAT charged on a ground source heat pump?
Not until April 2027. HMRC says the installation of ground source heat pumps in residential accommodation is zero rated from 1 May 2023 to 31 March 2027, and the reduced rate of 5% applies from 1 April 2027.
Checked October 2026 by the Solaxyra Editorial Team. Sources: Energy Saving Trust: Ground source heat pumps, GOV.UK: Boiler Upgrade Scheme, what you can get, HMRC VAT Notice 708/6: energy-saving materials, DESNZ: Boiler Upgrade Scheme statistics, Ofgem: price cap 1 October to 31 December 2026.