We have an air source heat pump- just to put in a slightly different option. I can't tell you technical details but this is how it worked from my untechie wife point of view. . .
OH spent hours/weeks/months researching online.
We live in a 30's house that is twice as large downstairs as upstairs, half single brick, half cavity walls, barely any insulation. . .
The OH had the cavity walls filled with insulation, and because he couldnt put more insulation in the roof, something to do with sloping ceilings, he took off the ceilings and put insulation board in between the rafters from the underneath, then boarded and replastered. He has so far done 2 bedrooms and the hall upstairs.
SO back to the pump - we couldnt have a ground source pump because I believe option 1 is deep bore holes drilled downwards, which was ridiculously expensive, or option 2 is rows of tubing under the ground and we would have to rip up the whole garden to get the amount of tubing required for our house (incidentally the large school next door (think private in old manor house) has had it done and dug furrows down most of the sides of a hill to get their tubing in).
So, we have the air source pump in the garden which is fairly ugly but is going to be disguised this summer, and produces a fantastic fridge effect on the one side for cooling beer and us in the summer - a big pipe underground into the garage and a large tank and some extra system boxes all in the garage with the fuse boxes. OH also had new radiators put through the house but I think this was for efficiency and not necessary for the heat pump. And I no longer have a tank in the airing cupboard so more storage room! The heat pump heats the water in the tank which has an inner tank and outer tank. The water in the outer tank is used in the radiators and keeps the inner tank warm for the shower.
All together it took a week I think for the installers to put in the pump, tank etc - during which time we had no heating/water. But I now have a fantastically warm house, hot water on tap all the time, a new shower which runs off the tank in the garage (water is apparently pushed round the house under the cold pressure - dont ask me how, which means the shower is more powerful now). Over this very cold winter (our first year with the pump) the old oil boiler comes on when the temp outside drops below minus 3 I think to give it a boost. And I also now have a heater blowing hot air in the kitchen connected to the radiators, which was always freezing before. The kids bedroom is always warm (mine is still to be insulated!) but we still have a log fire in the lounge cos we like it!
Cost wise, it was expensive to put in but has already saved us more in oil than cost in elec this winter so we are money up bill wise. Which means we expect it to pay itself off long before we retire!
I have just read the pertinent points to the OH who is now laughing hysterically at my inability to explain the techie bits and who keeps naming things like buffer vessels (the tank in the garage), compressor and evaporator (the thing in the garden) to make me look really stupid.