Opportunities and costs for shared ground loops

Shared ground loops (SGLs) combine shared ground heat exchangers with distributed heat pumps across multiple properties and may offer a route to decarbonise heating where individual heat pumps or heat networks are not feasible. SGLs can be installed in homes and buildings with limited outside space for a heat pump or insufficient demand density to support a heat network. To make the most of potential opportunities, greater awareness of factors shaping UK deployment is needed. Through a mixed-methods approach combining rapid evidence assessment, case studies and policy mapping, this study finds SGLs mostly limited to deployment by social landlords and in new build settings, with wider use impacted by high capital costs, policy gaps around mid-scale solutions, market concentration around a single supplier, and the need for business models applicable to mixed-tenure settings. SGLs are particularly suitable for dwellings in higher density areas outside of government-designated Heat Network Zones, where it is expected that large heat networks will deliver the lowest-cost route to decarbonising heat. We suggest policy and practice recommendations intended to create conditions for wider deployment. At a national policymaker level, SGL suitability for mid-scale, medium-density settings and support for a flexible energy system should be more clearly recognised, especially in areas outside Heat Network Zones. At the individual company level, deployment would be supported through development of utility-style business models and installation approaches by infrastructure developers which can offer SGLs to households of a range of tenure types. • Deployment Context and Challenges : o Shared ground loops (SGLs) are primarily deployed by social landlords and in new build settings. Wider use is limited by high capital costs, policy gaps, market concentration, and the need for suitable business models. • Suitability for Specific Areas : o SGLs are particularly suitable for dwellings with limited outside space likely to be prevalent in higher-density areas but which fall outside government-designated Heat Network Zones where it is expected large heat networks will offer the lowest-cost route to decarbonising heat. • Policy and Practice Recommendations : o The study suggests policy and practice recommendations to create conditions for wider deployment of SGLs. These include national policy recognition, local planning support, community-level energy planning, and development of utility-style business models. • Cost Comparison and Economic Viability : o The research includes a cost comparison showing that while SGLs currently represent a higher cost low and zero-carbon (LZC) option, they may offer lower costs in retrofit settings compared to other LZC technologies. This highlights the potential for cost reductions with market development and increased competition.