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Ground Source Heat Pump Grants

Heating and hot water in the home does not come without its cost, not only to the bill payer but also to the environment. In an effort to help households make the switch to a more environmentally friendly alternative, grants of up to £6,000 are available to households to subsidise the move from their old heating system to a greener alternative, like a ground source heat pump (GSHP).

GSHPs can be costly to install but are an investment that will bring savings in the long-term that make them a great option for the eco-conscious household who also wants to cut the cost of their heating. Ground source heat pump grants and subsidies from the Government make it a more realistic prospect for households who may have previously been put off by the initial cost of installing a heat pump system.

Enquire today, and we’ll put you in touch with expert installers who will help you find out what sort of grant or discounts you might qualify for when it comes to ground source heat pump installation. Make the first move to a new energy-efficient ground source heat pump system that could help you save hundreds of your energy bills each year.

Are there grants available to get a ground source heat pump?

Grants of up to £6,000 are available to households from April 2022 to help them with the costs of switching to a ground source heat pump system. The government funding is available over the next 3 years and is an attempt to encourage people to move away from old inefficient fossil fuel burning heating systems like gas boilers.

The £450 million that has been allocated to the Boiler Upgrade Scheme is expected to provide funding for up to 90,000 homes to make the switch to a heat pump. Make sure you don’t miss out by making an enquiry to see if a ground source heat pump system is suitable for your home, and if so, what funding, discounts or finance options are likely to be available to you.

How do I get a grant for a ground source heat pump?

Grants for ground source heat pumps differ from other funding initiatives which are often income or benefit-related. As the purpose of the funding is to encourage more homes into greener heating alternatives, in an attempt to help the UK meet its environmental targets, the available grants are effectively free subsidies to households.

With an aim to increase demand for heat pumps and other greener heating alternatives so that they become more commonplace in UK homes, there are opportunities for households to get access to grants for different types of heat pump, including ground source heat pumps and air source heat pumps, regardless of their household income or benefit status.

For those who don’t qualify for a grant, you may still be able to access discounts on ground source heat pump installation or some great finance offers to help you pay for your new GSHP.

There is also the possibility that some funding may be available for households who would be likely to struggle with the costs of heating their homes. The ECO4 scheme, which replaced the previous ECO3 scheme that helped households with the cost of new boilers and insulation, could be an option for some, and is separate to the potential £6,000 grants scheme.

What are the benefits of using a GSHP?

How does a ground source heat pump work?

A ground source heat pump (GSHP) extracts heat directly from the ground where average annual temperature underground stays at around 8-10°C. Regardless of how cold it may be outside, the temperature underground remains largely unchanged.

The heat pump extracts heat either through a vertical borehole heat pump system or a horizontal ground source system that uses an array of shallow trenches in which a series of pipes or loops are installed. Within these pipes, a solution is circulated that absorbs the heat underground and filters it through a heat exchanger into the pump which can then use it to provide heat and hot water for the home. 

Why choose a ground source heat pump?

As a highly efficient heating system that can provide heat and hot water for the home throughout the year, ground source heat pumps are a great option for those whose home has the ground space to accommodate them. While it is true that the costs of installation can be far greater than that involved with a gas boiler system, with grants and funding, a GSHP could be the right option for you.

As ground source heat exists at a relatively constant temperature all year round, this means that heat pumps of this nature are not subject to drop in temperature that occurs in the colder months with an air source heat pump. Through the ground loops installed that are able to efficiently extract this already warm heat from the ground, this means less electricity is required to run out the heat that is able to warm the home and heat water.

It is in terms of energy costs and reduced emissions that ground source heat pumps really excel. Although they are more costly to install, yet are an investment that will bring savings in the long-term, both in terms of reduced heating bills and carbon footprint. With the subsidies available, the overall cost is considerably reduced to make a GSHP a realistic option for many households.

How much will a ground source heat pump installation cost?

Ground source heat pump installation is not cheap, but with the availability of grants they become a good option for many households. Horizontal ground source heat pump systems are usually much cheaper than vertical systems which require digging to a much greater depth. 

The good news is that financial help is available for both types of ground source heat pump through grants. GSHPs will require the digging of trenches for horizontal systems, or the drilling of deep boreholes for vertical systems, which is a significant portion of the cost.

Costs for heat pump installation can vary depending on many factor, including your current set up and requirements, but to give you an idea, some typical cost examples are as follows:

SizeType of systemAverage cost
6-8KW Horizontal ground source heat pump£10,000 to £12,500
12KW Horizontal ground source heat pump£15,500 to £17,500
12KW Vertical system (requiring multiple boreholes)Up to £30,000

What requirements does my home need to be suitable for a ground source heat pump?

The one main drawback to GSHPs is that they require a fair degree of outdoor space which not every property is able to provide. External space is required for the digging of vertical trenches to accommodate the extensive ground loops required, or for the digging of bore holes which can sometimes be as much as 100m deep.

Horizontal ground source systems typically require between 2 and 3 times the heated floor area of the house. A vertical heat pump system consisting of boreholes doesn’t require as much space as the boreholes are dug downwards and are only 10 to 15cm wide, but spaced about 8 metres apart.

It is the space requirements that mean that ground source heat pumps are not suitable for every property, in which case an air source heat pump may be a suitable alternative.

Frequently Asked Questions

With an increased focus in the the UK to moving away from fossil fuel heating and transitioning to more energy efficient systems, this means that low-carbon heating alternatives like heat pumps are becoming commonplace. This means that it is surely only a matter of time before most households that are suitable will have a heat pump system that will help them use less fossil fuels and save energy and reduce their bills.

The majority of heating systems rely on burning fuel or converting electricity into heat. Ground source heat pumps differ and are more efficient because they don’t generate heat, but instead extract existing heat energy from the ground to be delivered into your home. By providing more heat energy than the electrical energy they require to run the system, a heat pump set up is more cost-effective than traditional heating systems such as a boilers.

The efficiency of heat pumps can be measured by a Seasonal Coefficient of Performance (SCoP). This details the level of heat produced for every unit of electricity consumed. Usually, ground source heat pumps generate between three and five units of heat for every unit of electricity that is consumed, representing a SCoP of 3-5 (or between 300% and 500% efficiency). Compared to this, a standard boiler may have an efficiency of between 60% and 90%+ depending on its age.

An GSHP system needs electricity to work, but uses less than the quantity of heat they extract from the ground, leading to savings. The amount you save will depend on a number of factors including your heat pump set up, the heating system you have replaced, your electricity tariff,  and the costs of the fuel you are replacing. If you benefit with a grant towards the cost of installing a ground source heat pump, you could save several hundred pounds on heating each year.

The noise of a ground source heat pump is less than both a gas boiler or an air source heat pump and sounds not unlike a dishwasher. Because there is no fan component and the heat source is warmer (therefore putting less strain on the compressor), this makes them one of the quietest heating options available on the market.  


In England and Scotland, ground source heat pumps don’t normally require planning permission and would be classed as Permitted Development unless the building is listed or is in a Conservation area, area of Outstanding Natural Beauty, or a National park. Those in Wales do need planning permission to install a heat pump. If unsure, you should check with the local planning department.

If it is correctly installed and maintained, a ground source heat pump should have a working lifespan of roughly 20-25 years, while the excavated ground loops can last for up to 50 years.

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Tony Renaud
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We had an Ideal Logic 2 Combi boiler fitted on 29/06/23 with Fixx. Craig the Engineer arrived bright and early after a call to say he would be there in 30 minutes. He was very efficient and finished by mid afternoon before running through all the wireless thermostat details before leaving. Found the company extremely helpful with any questions I asked, great company to do business with and would recommend highly.
Eduardo Benito
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Extremely impressed with Fixx and everyone there that I dealt with. They discussed all the requirements for a new under sink water heater for my flat to supply the kitchen sink and bathroom sink in the next room, as well as connections for a dishwasher and washing machinke. They provided a quote very quickly and the whole thing was installed just a few days later. Very neat setup, all ready for the kitchen fitter to complete the worktop and hook up the taps to the sink (see photos). I would 100% use Fixx again - I'm a very satisfied customer.
Simon Richards
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The two gentlemen from Fixx did a fabulous job removing my Boiler Mate 2000 and replacing it with an unvented cylinder. Everything at each stage was explained to me and they worked extremely hard to achieve a fantastic result. I won’t hesitate to contact them in the future if and when I need a new boiler and would 100% recommend Fixx to anyone.
Raluca Badea
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Very pleased with Fixx services, from start to finish. Craig kindly arranged for my Baxi Duo Tec boiler to be repaired asap and the engineer (Louis) arrived on time, was professional and polite, talked me through what he found and how he fixed it. Highly recommend! Thank you Fixx.
Phil Smith
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I've a contract for my boiler so when I found a leak, I contacted the helpline. Still had hot water but they still sent someone within 24 hours. Engineer (Darren) came and found the fault. Had the correct part in the van and heating was back on in around an hour from his arrival. Great service and knowledgeable. Highly recommend.
Ian Edwards
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Great service. Carl, the plumber, who sorted the boiler was so friendly and knowledgeable. So good in fact that we got the company to send him again to fit a Hive system which has helped us save a fortune.