Of all heat pumps, the geothermal heat pump requires the largest initial investment, yet it is an extremely interesting solution from a technical point of view. A ground-source heat pump uses a heat source that is much more consistent than air, which means it can also provide highly energy-efficient passive cooling.
However, all this involves significant initial costs. In the case of a ground-source heat pump system, the ground loop from which the system extracts heat must also be designed and installed. Is it therefore worth investing several million forints more in a geothermal system?
To answer this, let’s take a look at how the technology works, how much geothermal heating might cost in 2026, and in what circumstances it is worth considering at all.
What is a geothermal heat pump, and how does it work?
The method used for detached houses A geothermal heat pump uses the energy stored in the ground below the surface as a heat source. It works in a similar way to other heat pumps. The system absorbs heat from a lower-temperature environment and then, using the compressor, raises it to a higher temperature, so that the energy can be used both to heat the building and to produce domestic hot water.
A comprehensive guide to the different types of heat pumps We will also explain in more detail the differences between air-to-water, air-to-air, geothermal and hybrid systems. The most important feature of a geothermal solution is that the heat source is the ground.
Ground probe or ground collector?
There are several ways to harness the energy of the ground. In detached houses, there are two main solutions: vertical ground probes and horizontal ground collectors.
Ground-source heatingOne or more deep boreholes are drilled, into which closed pipe loops are installed. The fluid circulating within the pipe network absorbs heat from the ground and transports it to the heat pump. One advantage of this solution is that It requires a relatively small surface area, but deep drilling is a significant cost.
The ground-source heat exchangerIn contrast, the pipes are laid much shallower, horizontally. There is no need for such deep drilling, as with the probe, However, a significantly larger area of vacant land and substantial earthworks are required.
Ground probe or ground collector?
| Criterion | Ground probe | Ground-source heat exchanger |
|---|---|---|
| Space requirements | Relatively small | Nagy |
| Construction | Deep drilling is required | Large-scale earthworks |
| Capital expenditure | Typically higher | It might be more favourable |
| Stability of the heat source | Very good | It may vary more due to the shallower soil |
| Existing garden | It covers a smaller area, but the drilling rig needs to get in there | A large area needs to be cleared |
In order to decide which solution is suitable, it is necessary to take into account the building’s heating requirements, the available space and the geological conditions of the site.
Why are ground-source heat pumps so efficient?
One of the greatest advantages of a geothermal system lies precisely in the heat source. The greater the temperature difference the heat pump has to bridge, the more energy it consumes. In the deeper layers of the earth, the temperature is much less affected by the daily and seasonal fluctuations in surface air temperature, shallow ground-source heat pump systems so they make use of the soil’s relatively stable temperature.
Frost or ice may form on the outdoor heat exchanger of an air-to-water system, which the unit must remove from time to time by means of a defrosting cycle. There is no such process in a ground-source heat pump system.
COP and SCOP: it does matter which one you look at
One measure of a heat pump’s efficiency is the COP. If, for example, a unit has a COP of 4, it will deliver 4 kWh of thermal energy for every 1 kWh of electrical energy consumed under specific test conditions.
However, this does not indicate what the actual annual energy consumption will be. The SCOP, which describes seasonal performance, is more useful for this purpose, as it attempts to take into account the varying conditions over an entire heating season.
The actual result also depends on the temperature of the water the system needs to produce. This is why heat pumps work particularly well with underfloor heating.
The cost of geothermal heating in 2026: how much does a complete system cost?
In the case of the cost of geothermal heating In addition to the heat pump, you will need to pay for the installation of the probes and the drilling, the primary-side pipework, the mechanical connections, the control system, the necessary storage tanks and the design work and, where appropriate, for the development of the electricity grid as well.
What makes up the capital cost of a geothermal heat pump?
| Cost element | What does it depend on, primarily? |
|---|---|
| Heat pump | Required heat output, equipment |
| Ground probe | Required probe length and number of probes |
| Drilling | Depth, geological conditions, accessibility of the site |
| Mechanical engineering system | HMV, storage tanks, hydraulics, control systems |
| Design | The size and complexity of the system |
| Electrical works | Existing network and required capacity |
| Heat sinks | Can the existing system be used, or does it need to be adapted? |
What is the main factor driving up the cost of ground-source heating?
One of the biggest variables in the project is the ground itself. The required probe length depends on the building’s heating requirements and the local geological conditions. As a rule of thumb for design purposes, under normal hydrogeological conditions, an average heat removal rate of approximately 50 W/m can be expected; however, this should not be used in place of on-site investigation and dimensioning.
A higher heat demand may mean more probes or a greater total probe length, which in turn increases the cost of drilling. It is also important to consider how easily the drilling rig can access the work site.
Ground-source or air-to-water heat pump: which is better value?
The ground-source heat pump system offers a number of technical advantages, but it is not the most cost-effective option for every family home.
| Criterion | Ground-source heat pump | Air-to-water heat pump |
|---|---|---|
| Initial investment | Higher | Typically lower |
| Heat source | Soil | Outside air |
| Stability of winter efficiency | Very good | It depends more on the weather |
| Installation | It requires drilling and more detailed planning | Simpler |
| Outdoor fan unit | None | There is |
| Outdoor noise | There is no noise from a conventional outdoor unit | You have to take that into account |
| Passive cooling | Possible | No |
| Service life of a ground-source system | It could be very long | No soil zone |
If a state-of-the-art air-to-water heat pump heats a well-insulated detached house at a low annual cost, the additional savings achievable with a ground-source heat pump system may amount to relatively few forints per year. If this requires an additional investment of several million forints, the difference in the electricity bill alone could result in a long payback period.
Return on investment for a geothermal heat pump: it’s not just about the running costs
It is always best to calculate the return on investment for the building in question. Key factors include, amongst others:
- the difference in capital costs between the two systems
- the building’s annual heating and hot water requirements
- the actual seasonal efficiency of the two systems
- the required flow temperature
- the current electricity tariff
- summer cooling demand
In our article on the payback period for heat pump installations We will also explain in more detail how to carry out such a calculation.
It is particularly interesting that In a highly modern, low-energy house, the financial benefits of a geothermal system may actually be even smaller. There is a simple reason for this: if our energy consumption is already low, it is difficult to achieve further savings when consumption is already low.
To take a simple example: how much of a difference can a better SCOP make?
Let us assume that a building requires 20,000 kWh of heating energy per year. If the actual seasonal performance factor of an air-to-water system is 3.8, then theoretically:
20,000 / 3.8 = approx. 5,260 kWh of electricity is required to generate the heat for heating.
If the seasonal performance factor of the ground-source heat pump system in the same building were 4.8:
20,000 / 4.8 = approx. 4,170 kWh of electricity.
The difference is approximately 1,090 kWh per year.
This represents a noticeable saving, but it is also immediately apparent that, even assuming favourable electricity prices, it may take a long time for the annual difference of roughly 1,000 kilowatt-hours to recoup the additional investment of several million forints.
If you were to compare not only the two types of heat pump, but also gas, electric heating and other solutions, the How much does heating cost with different heating methods? Our guide, entitled […], can help you get a complete overview.
Tariff H for geothermal heat pumps: it can make a big difference to running costs
When calculating the electricity consumption of a geothermal heat pump, it is worth taking the H tariff option into account. According to MVM’s regulations, the H tariff is available for heat pump systems that utilise renewable energy and meet the relevant requirements, provided they have a separately metered circuit. The period for the preferential H tariff runs from 15 October to 15 April.
Can a geothermal heat pump be used for both heating and cooling?
Yes, and cooling is one area where a ground-source heat pump system can offer a particularly interesting advantage. In active cooling mode, the heat pump’s compressor is also running, which means the system uses electricity to transfer heat. In the case of a geothermal system however There may also be scope for passive cooling.
In doing so, the system utilises the lower temperature of the ground to cool the building, without the heat pump’s compressor having to run continuously. The circulation pumps and the control system naturally still consume electricity at this time, but the energy requirements for cooling can be favourable.
What types of heat emitters work well with ground-source heating?
Even a geothermal heat pump does not override one of the fundamental principles of heat pump heating: the lower the flow temperature required to heat the building, the more favourably the system can operate. Therefore, one of the Underfloor heating is an ideal heat source.
How is a ground-source heat pump installed?
The project involves the building and by examining the scene It begins. As a first step, the building’s calculated heat demand must be determined. This may be followed by design of the ground side. The required probe length heating requirements and local geological and hydrogeological conditions influence.
It takes place after the drilling construction and connection of the primary pipework network, followed by the connection of the heat pump, the hydraulic system, the DHW tank, the control system and the heat emitters, and finally system calibration and commissioning.
Do you need a permit for a ground-source heat pump?
In the case of deeper ground-penetrating radar systems, the licensing requirements must be clarified at the project preparation stage. Under the current Mining Act, The extraction and utilisation of geothermal energy from a section of the Earth’s crust at a depth of less than 20 metres below the natural surface does not, in itself, require a licence, but the Act also expressly states that a licence may still be required under other legislation. A vertical ground probe installed in a detached house is typically considerably deeper than this.
The regulations governing the use of geothermal energy have changed in recent years, and therefore It is not advisable to rely on old online guides to determine what permission is required for a specific plot of land and borehole. Based on the site, the planned depth and the system design, the designer and the contractor must check the current regulatory requirements right at the start of the project.
How long does a geothermal system last?
When considering the system’s service life, it is important to distinguish between the heat pump itself and the ground-source heat exchanger system.
The heat pump It contains a compressor, circulation pumps, electronics and other mechanical components, which, of course, do not last forever. One must take this into account maintenanceand finally, replacement of the equipmentwith.
A properly designed and constructed underground pipe network However, this is significantly long-term infrastructure. This is important because replacing a heat pump at a later date is nowhere near as expensive as the initial investment.
What are the disadvantages of a geothermal heat pump?
The main drawback is clearly the high initial investment cost. This is accompanied by more complex design and construction, the space required for drilling, and tasks relating to authorisation. In the case of retrofitting, access to the work area may also pose a problem: it is not certain that the area can be adequately accessed with the necessary drilling equipment.
Who should consider choosing a geothermal heat pump in 2026?
It is important to note that, in a modern building with low heating requirements, the additional energy savings achievable compared with an air-to-water system do not necessarily justify the significantly higher investment.
From an economic perspective, geothermal heat pumps are particularly attractive for projects where the heat sources and the entire mechanical system can be optimised from the outset for heat pump operation, and where, due to the high level of annual consumption, the savings resulting from improved seasonal efficiency are also more significant.
Geothermal heat pump: an expensive luxury or a long-term investment?
It is not worth asking whether a ground-source or an air-to-water heat pump is „better”. In return for a higher initial investment, a geothermal system offers favourable seasonal efficiency, operation without an outdoor fan unit, and even the possibility of energy-efficient passive cooling.
In every case, the final decision should be based on the building’s calculated heating requirements, the characteristics of the site and a specific system design. This is particularly true for geothermal heat pumps: a good system starts with precise planning.