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

BMManu KPublished on: Jul 15, 2025

As energy efficiency and sustainability become more important to homeowners, heat pumps are quickly gaining popularity across Ontario. But if you're considering installing one, you may be wondering: Should I choose an air source or a ground source heat pump?

Both systems offer eco-friendly heating and cooling but their performance, cost, and installation process vary significantly. In this guide, we’ll compare air source vs. ground source heat pumps to help you choose the right solution for your home.

What is a Heat Pump?

A heat pump transfers heat rather than generating it making it a highly energy-efficient option for heating and cooling homes.

In winter, it extracts heat from the outside (air or ground) and moves it indoors.
In summer, it reverses direction to cool your home by removing heat.

There are two primary types:

Air Source Heat Pumps (ASHPs) – extract heat from the outside air.
Ground Source Heat Pumps (GSHPs) – also called geothermal systems, extract heat from the earth.

Air Source Heat Pumps (ASHPs)

How Air Source Heat Pumps Work?

Air source heat pumps absorb heat from the outdoor air (even in cold temperatures) and use refrigerant cycles to transfer it into your home.

Pros of Air Source Heat Pumps:

Lower upfront cost compared to ground source
Easier installation – no digging or trenching required
Ideal for urban or smaller properties
Excellent for Ontario homes with mild-to-moderate winter needs

Cons of Air Source Heat Pumps:

Less efficient in extreme cold (though newer models work well in -20°C+)
May produce some outdoor noise
Typically last 12–15 years

Ground Source Heat Pumps (GSHPs)

How Ground Source Heat Pump Work?

Ground source systems use underground pipes (loops) to tap into the earth’s stable temperature. Heat is exchanged through a liquid-filled loop and brought into your home.

Pros of Ground Source Heat Pumps:

Highest energy efficiency – consistent year-round performance
Excellent in extreme cold climates
Long lifespan – 20–25 years for equipment, 50+ years for underground loop
Very quiet operation
Ideal for homeowners seeking maximum sustainability

Cons of Ground Source Heat Pumps:

High upfront installation cost
Requires drilling or trenching – not ideal for small lots
May need permits or site evaluations (especially in dense areas)

Air vs. Ground Source: What Are the Real Costs?

Feature	Air Source Heat Pump	Ground Source Heat Pump
Upfront Cost	$4,000-$10,000	$18,000-$30,000+
Installation Time	1-2 days	3-10 days
Lifespan	12-15 years	20-25+ years
Operating Cost	Moderate	Very Low
Rebate Available	Yes	Yes
Return on Investment	5-8 years	8-12 years

Which Heat Pump is Right for You?

Choose Air Source If:

You want a more affordable installation
Your home is in a moderate climate or you're upgrading from a furnace/AC
You have limited yard space
You need a faster install and less disruption

Choose Ground Source If:

You’re planning a long-term investment
Your property has space for drilling or trenching
You want maximum efficiency in both summer and winter
You’re building a new home or doing major renovations

Ontario Heat Pump Rebates & Incentives

Both types of heat pumps qualify for government rebates through:

At Go Lime, we can help you maximize your savings with rebates worth up to $6,500 or more.

Still Not Sure Which One to Choose?

Every home is different and so are your heating and cooling needs. At Go Lime, we help homeowners across Ontario choose the right heat pump system with a custom assessment that considers: