Heat pumps come in two main flavours. Air-source (ASHP) pulls heat out of the outside air and upgrades it. Ground-source (GSHP) pulls it out of the soil via a buried loop of pipe. Both qualify for the £7,500 Boiler Upgrade Scheme grant. Both, when designed properly, will replace a gas or oil boiler beautifully. But they aren't interchangeable — and the right choice depends far more on your site than on personal preference.
Air source vs ground source — the headline differences
| Metric | Air-source (ASHP) | Ground-source (GSHP) |
|---|---|---|
| Typical fitted cost | £11,000–£14,000 | £22,000–£32,000 |
| BUS grant | £7,500 | £7,500 |
| Net cost after BUS | £3,500–£6,500 | £14,500–£24,500 |
| Install time on site | 3–5 days | 2–4 weeks |
| Typical SCOP (seasonal efficiency) | 3.2–4.2 | 4.0–5.0 |
| Lifespan | 15–20 years | 20–25 years (loop: 50+) |
| Ground works needed | None | Boreholes or trenches |
| Noise | 40–45 dB(A) at 1m | Silent outside (pump in plant room) |
How each kind of heat pump actually works
An ASHP looks a bit like a large outdoor air-conditioning unit, usually sitting on an exterior wall or a small base beside the house. A refrigerant circuit absorbs heat from the outside air — yes, even well below freezing — and a compressor upgrades it to useful radiator or cylinder temperatures. All the working kit lives in one box outdoors.
A GSHP runs the same refrigerant cycle but draws its heat from a glycol-water mix circulating through a buried pipe loop. That loop is either a set of vertical boreholes drilled 50–150m deep, or a horizontal array in a trench field. The compressor itself sits inside the house — usually tucked into a utility room or a dedicated plant room — so there's no outdoor fan.
Which heat pump suits which home
Air-source is usually the right call if:
- You have a typical domestic plot with a limited garden — terraced, semi-detached or new-build homes.
- Your budget is tight and you want the lowest upfront number after the BUS grant lands.
- You're on mains gas and need a reasonable payback window for the swap to make financial sense.
- The install needs to happen in weeks, not months — for example in a boiler emergency over the winter.
- You value simpler maintenance and a proven, high-volume service network across the UK.
Ground-source is usually the right call if:
- You have a large plot — 800 m² or more for a trench field — or you can drill boreholes on the drive.
- You're building new or doing a major renovation. Ground works are much cheaper when the diggers are already on site.
- You need the highest possible efficiency in a big, well-insulated home that you plan to live in for 20+ years.
- Silence matters to you. Ground-source has no outdoor fan unit at all, so there's nothing to hum beside the patio.
- You're off-grid and running on oil, LPG or Calor — the lifetime running-cost saving pays back the higher upfront.
Running costs — the bit that actually matters over 20 years
Ground-source is more efficient because the soil is a far more stable heat source than the air — roughly 8–12°C year-round in the UK, compared with winter air that can drop to -5°C. That higher, steadier source temperature translates directly into a better seasonal COP (SCOP) and a cheaper cost per useful kWh of heat in your radiators.
| System | Effective p/kWh | Annual heat cost (12,000 kWh demand) |
|---|---|---|
| Gas boiler (92%) | ~7.6p | £912 |
| ASHP, SCOP 3.2, standard tariff | ~8.8p | £1,050 |
| ASHP, SCOP 3.2, heat-pump tariff | ~4.4p | £530 |
| GSHP, SCOP 4.5, standard tariff | ~6.2p | £745 |
| GSHP, SCOP 4.5, heat-pump tariff | ~3.1p | £375 |
Here is the headline. On a dedicated heat-pump tariff, a well-designed GSHP is genuinely the cheapest heating you can buy in the UK — including gas. On a standard tariff, the gap to ASHP narrows to around £300 a year, which won't recover the £15k+ of extra upfront cost inside the system's lifetime. The tariff matters as much as the kit.
The £7,500 BUS grant applies equally to both
The Boiler Upgrade Scheme now pays the same £7,500 across ASHP and GSHP. That's a big shift from the old RHI days, when GSHP paid out roughly twice as much. The policy change has tilted the economic case firmly towards air-source for most homes, because ASHP is cheaper to buy AND attracts the same grant. Ground-source has to earn its place on site conditions alone.
How OMEGA designs a heat pump that actually works
- Full heat-loss survey to MCS MIS 3005 — measured room by room, never just estimated from the EPC.
- Fabric-first review. Where it matters, we recommend insulation upgrades before the pump so the system is sized correctly.
- Correct sizing from day one. Oversizing is the single biggest cause of unhappy heat-pump customers — we don't do it.
- Weather compensation tuning and low-flow-temperature design (45°C or below) for a quiet, efficient, comfortable home.
- BUS application handled for you end-to-end — you never see a form, and the £7,500 comes off your invoice before you pay.
If you'd like a straight answer on whether your home is heat-pump ready, book a free suitability survey online or ring 0800 229 4094, Monday to Saturday. Our surveyor will tell you honestly whether a fabric upgrade should come first, whether a hybrid or A-rated boiler is the smarter bridge, or whether you're ready to go. No cost. No obligation. No pressure.
Want to find out how much you could save?
Book a free 45-minute survey. We'll check every active grant, measure your home, and give you a written quote — with no obligation to proceed.
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