Air Source vs Ground Source Heat Pumps: Which Is Right for You?

Compare air source and ground source heat pumps to decide which type works best for your property, budget, and heating needs in 2025.

Quick Comparison

Air SourceGround Source
Installation cost£10,000-£15,000£18,000-£28,000
BUS grant£7,500£7,500
Your cost after grant£2,500-£7,500£10,500-£20,500
Efficiency (COP)2.5-3.53.5-4.5
Space requiredSmall outdoor unitLarge garden for ground loops
Installation time1-2 days3-5 days
Best forMost UK homesLarge properties with land

What Is an Air Source Heat Pump?

An air source heat pump (ASHP) extracts heat from outdoor air — even in cold temperatures — and transfers it inside your home. Think of it as a reverse refrigerator.

How It Works

  1. Outdoor unit absorbs heat from the air
  2. Refrigerant liquid carries the heat indoors
  3. Heat is compressed to increase temperature
  4. Warm air or water is distributed through radiators, underfloor heating, or air vents

ASHPs work efficiently even when outdoor temperatures drop to -15°C, making them suitable for UK winters.

What Is a Ground Source Heat Pump?

A ground source heat pump (GSHP) extracts heat from the ground using pipes buried in your garden. The ground stays at a constant temperature year-round (about 10-15°C), making GSHPs very efficient.

How It Works

  1. Underground pipes (ground loops) filled with antifreeze solution absorb heat from the soil
  2. Fluid circulates back to the heat pump indoors
  3. Heat is compressed to increase temperature
  4. Heat is distributed through your heating system

Two types of ground loops: Horizontal (trenches in large gardens) or vertical (boreholes drilled deep underground).

Air Source Heat Pumps: Pros & Cons

✓ Advantages

  • Lower upfront cost (£2,500-£7,500 after BUS)
  • Quick installation (1-2 days)
  • Works in most properties
  • No garden excavation required
  • Easier to maintain

✗ Disadvantages

  • Slightly lower efficiency than GSHPs
  • Performance drops in extreme cold
  • Outdoor unit can be noisy (50-60dB)
  • Visible outdoor unit may affect aesthetics
  • Higher running costs than GSHPs

Ground Source Heat Pumps: Pros & Cons

✓ Advantages

  • Higher efficiency (lower running costs)
  • Consistent performance year-round
  • No visible outdoor unit
  • Quieter operation
  • Longer lifespan (25+ years)

✗ Disadvantages

  • Much higher upfront cost (£10,500-£20,500 after BUS)
  • Requires large garden or space for drilling
  • Longer installation (3-5 days)
  • Garden disruption during installation
  • Not suitable for small properties

Running Costs Comparison

Based on a typical 3-bedroom semi-detached house:

Old Oil Boiler

£1,800/year

Typical annual heating cost

Air Source Heat Pump

£900/year

50% saving vs oil

Ground Source Heat Pump

£700/year

60% saving vs oil

*Estimates based on average UK energy prices 2025. Actual costs vary by property size, insulation, and usage.

Which Heat Pump Should You Choose?

Choose Air Source if:

  • You want lower upfront costs
  • You have limited outdoor space
  • You want quick installation
  • You live in a typical UK property
  • You're on a tighter budget

Choose Ground Source if:

  • You have a large garden or land
  • You want the most efficient system
  • You can afford higher upfront costs
  • You want minimal noise
  • You're thinking long-term (25+ years)

Payback Period

How long until your investment pays for itself through energy savings?

Air Source Heat Pump

Your cost after BUS: £5,000 (average)

Annual savings vs oil: £900

Payback: 5-6 years

Ground Source Heat Pump

Your cost after BUS: £15,000 (average)

Annual savings vs oil: £1,100

Payback: 13-14 years

Get £7,500 Towards Your Heat Pump

Check if you qualify for the Boiler Upgrade Scheme

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UGRANT connects you with MCS-certified installers who advise on the best heat pump for your property

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