Types of Heat Pumps: Air-Source vs Ground-Source

If you're considering upgrading your home's heating system, heat pumps are one of the smartest moves you can make. They’re energy-efficient, low-maintenance, and built to work seamlessly with renewable energy systems. But choosing the right type isn’t always straightforward. Air-source and ground-source heat pumps both help cut energy bills and lower carbon emissions, but they operate differently, require different installations, and offer different long-term benefits. Understanding how they work and what they offer can help you make a better decision for your home and your wallet.

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Types of Heat Pumps: What You Need to Know in Brief

• Heat pumps use electricity to move heat, making them an efficient alternative to gas or oil heating.
• Air-source heat pumps are easier to install and work well for most homes.
• Ground-source heat pumps offer higher efficiency but require more space and planning.
• Both types can be used for heating, cooling, and hot water.
• Heat pumps work best in well-insulated homes with low-temperature heating systems.
• Pairing a heat pump with solar panels increases efficiency and lowers energy bills.

What Is a Heat Pump?

A heat pump is a low-carbon heating system that uses electricity to move heat from one place to another. Instead of burning fuel to create heat like a boiler, it transfers existing heat from the air or ground into your home. This process is much more efficient and cleaner than traditional heating methods.

Heat pumps can be used for both heating and cooling, making them a year-round solution. In colder months, they extract heat from outside even when it feels chilly and bring it indoors. In warmer months, the process reverses, helping to cool your home.

Modern heat pumps are highly efficient. Every unit of electricity they use can produce up to three units of heat. That means they’re up to 300% efficient compared to gas boilers, which usually run at around 82%.

Because they use electricity, heat pumps are a great match for solar panel systems. When powered by solar, they reduce your reliance on the grid and lower your carbon footprint even further.

Types of Heat Pumps

Heat pumps all work on the same basic principle: moving heat rather than generating it. However, not every system works the same way. The two main types, air-source and ground-source, are designed to suit different homes, climates, and energy goals.

There are different types of heat pumps for simple reasons. Homes vary in size, insulation, and available space. Some properties have access to open land, while others sit on compact urban plots. Local temperatures and soil conditions also affect how well a system performs. To meet these needs, manufacturers offer different technologies that make the most of the environment from which they draw energy.

Air-Source Heat Pumps

Air-source heat pumps pull heat from the outside air and use it to warm your home. They work even in cold weather and are one of the UK's most popular low-carbon heating options.

These systems sit outside your home and use fans to draw in air. The heat from that air is then transferred indoors through a refrigeration cycle. It is the same technology used in your fridge, just in reverse.

Air-source heat pumps are easier and quicker to install than other types. They take up less space and are a good fit for most properties, making them a common choice for homeowners making the switch from a gas boiler.

They are also highly efficient. For every unit of electricity used, an air-source heat pump can produce around three units of heat. A typical UK household could save between £300 and £900 a year on heating bills by switching from an old gas or electric system to an air-source heat pump.

With proper maintenance, most systems last 15 to 20 years. When paired with solar panels, they can lower your reliance on the grid and cut carbon emissions even further.

Ground-Source Heat Pumps

Ground-source heat pumps use the natural warmth stored in the earth to heat your home. The ground stays at a steady temperature below the surface all year, and these systems tap into that energy using buried pipes filled with a heat-transfer fluid.

The heat collected underground is brought indoors through a compressor and delivered through your radiators or underfloor heating. This steady supply of warmth makes ground-source systems very efficient, especially in colder climates.

Although the upfront cost is higher and installation takes longer, the long-term savings can be significant. Our research shows that switching to a ground source heat pump can lead to annual savings of between £560 and £1,400 when replacing an older electric or oil-based heating system.

These systems usually last over 20 years and need little maintenance. The underground loops can last more than 50 years, making them a long-term investment in low-carbon heating.

If you have enough outdoor space and plan to stay in your home for the long haul, a ground-source heat pump can offer higher efficiency and lower running costs.

Comparing Air-Source and Ground-Source Heat Pumps

Choosing between air-source and ground-source heat pumps depends on your home’s layout, energy goals, and budget. Both systems are highly efficient and environmentally friendly but work best under different conditions. 

Installation Differences

Air-source heat pumps are quicker to install and take up less space. They are placed outside your home and connect directly to your heating system. Most installations can be completed within a few days with minimal disruption.

Ground-source heat pumps require more planning. They use a network of underground pipes, either in horizontal trenches or vertical boreholes. This means the installation takes longer and needs more space, usually in a garden or open land. The process is more involved but can be worth it if your property is suitable.

Efficiency and Energy Savings

Both systems are more efficient than traditional heating. Air-source heat pumps typically deliver up to 300% efficiency. Ground-source systems can reach even higher, sometimes up to 400%, due to the stable ground temperature.

Switching from an old electric system to an air-source heat pump can save around £900 per year. Depending on your current setup and usage, a ground-source heat pump can save as much as £1,400.

The performance of either system improves when paired with solar panels, as you can power them using clean, self-generated electricity.

Cost Considerations and Incentives

Air-source heat pumps usually cost less upfront. A typical system can range from £7,000 to £13,000, depending on the size of your home and heating needs. Ground-source systems are more expensive, often between £18,000 and £35,000, due to the digging and pipework involved.

The UK government offers support through the Boiler Upgrade Scheme, which provides grants of up to £7,500 for air or ground-source heat pump installations. This helps bring down the initial installation cost and makes the switch more accessible.

While ground-source heat pumps have a higher price tag, they offer greater long-term savings and performance, especially in larger homes or colder regions.

How Heat Pumps Pair with Solar Panel Systems

Heat pumps and solar panels work well together because both use electricity to deliver clean, renewable energy. When combined, they create an efficient home energy system that reduces your reliance on the grid and cuts running costs.

Heat pumps draw electricity to move heat into your home. When that electricity comes from solar panels, your heating becomes nearly carbon-free. This setup is especially effective when your solar system generates power during daylight hours.

Using solar energy to run a heat pump helps maximise self-consumption. Instead of sending excess electricity back to the grid, your system uses it to heat your home. This leads to better use of your solar output and bigger savings on your energy bills.

A typical solar setup can save around £690 a year on electricity. When paired with a heat pump, these savings grow by reducing your heating costs as well.

Smart systems like Upvolt’s Skygate™ platform make it easier to manage both technologies. You can track performance in real-time, adjust usage patterns, and make the most of your renewable energy.

Together, solar panels and heat pumps create a cleaner, more cost-effective way to power your home. They also help raise your property’s energy rating and support the move toward a low-carbon future.

Which Type of Heat Pump Is Right for Your Home?

Heat pumps offer an efficient, low-carbon way to heat your home. Both air-source and ground-source systems can cut energy bills and emissions and pair seamlessly with solar panels. The right choice depends on your property, your budget, and how much you want to invest in long-term energy savings.

Air-source heat pumps are ideal for most homes. They are simpler to install, cost less upfront, and still deliver strong performance. Ground-source heat pumps offer higher efficiency and greater savings over time, especially for larger homes or properties with outdoor space.

If you already use or plan to install solar panels, either system will help you make the most of your clean energy. Together, they create a powerful setup that keeps your home warm, your bills low, and your carbon footprint small.

About Upvolt

At Upvolt, we provide high-performance solar panel, battery storage, and heat pump solutions designed to optimise your energy efficiency and reduce reliance on the grid. Whether you're generating power, storing it, or using it to heat your home, our systems work together to deliver a smarter, cleaner energy experience.

Our lithium iron phosphate (LFP) batteries, starting from 5kWh, offer reliable, long-lasting energy storage with up to a 15-year performance warranty for added peace of mind. Combined with solar, they allow you to store excess energy and use it when you need it most.

We also supply and install low-carbon heat pumps, including air source and ground source systems that integrate seamlessly with your renewable energy setup. Our heat pumps provide efficient, year-round heating and hot water, making them a perfect match for well-insulated homes looking to lower emissions and energy bills.

Sourcing only top-quality components from trusted global manufacturers, we ensure superior technology, charge and discharge rates, and long-term durability across all our systems.

Our experienced team handles every step of the process, from system design and installation to commissioning and ongoing maintenance, ensuring a smooth, hassle-free experience. Plus, with our Skygateâ„¢ platform, you can monitor and optimise your energy usage in real time through a simple, user-friendly app.

Ready to transition to solar energy and battery storage? Contact us today for a free quote and let Upvolt’s experts design the ideal renewable energy solution for your home.

FAQ

Do Heat Pumps Work In Cold Weather?

Modern heat pumps are designed to work efficiently even in colder temperatures. Air-source systems can still extract heat from the air when it’s as low as -15°C, while ground-source pumps benefit from the stable underground temperature all year round.

Can a Heat Pump Fully Replace My Existing Heating System?

In most cases, yes. A well-sized heat pump can replace your boiler or electric heater entirely. For best results, your home should be well insulated to retain heat and reduce energy demand.

How Much Space Do I Need for a Ground-Source Heat Pump?

Ground-source systems require either a garden large enough for horizontal trenches or enough depth for vertical boreholes. If you have limited space, an air-source heat pump may be the better option.

Are Heat Pumps Noisy?

Heat pumps are generally quiet, especially modern models. Air-source units produce a low hum, similar to an air conditioning unit, while ground-source systems are almost silent once installed.

How Often Do Heat Pumps Need Maintenance?

Heat pumps should be serviced by a qualified technician once a year. Regular maintenance helps keep the system running efficiently and can extend its lifespan to over 20 years.

Alex Lomax

CEO & Co-Founder

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