Use of ground source energy for space heating applications through Ground Source Heat pump (GSHP) has been established as an efficient thermodynamic process. The electricity input to the GSHP can be reduced by increasing the COP of the system. However, the COP of a GSHP system will be different for heating and cooling mode operations. Hence in order to reduce the electricity input to the GSHP, an optimum value of COP has to be determined when GSHP is operated in both heating and cooling modes. In the present research, a methodology is proposed to optimize the operating parameters of a GSHP system which will operate on both heating and cooling modes. Condenser inlet temperature, condenser outlet temperature, dryness fraction at evaporator inlet and evaporator outlet temperature are considered as the influencing parameters of the heat pump. Optimization of these parameters for only heating or only cooling mode operation is achieved by employing Taguchi method for three level variations of the above parameters using an L-9 (3(4)) orthogonal array. Higher the better concept has been used to get a higher COP. A computer program in FORTAN has been developed to carry out the computations and the results have been analyzed for the optimum conditions using Signal-to-Noise (SN) ratio and Analysis Of Variance (ANOVA) method. Based on this analysis, the maximum COP for only heating and only cooling operation are obtained as 4.25 and 3.32 respectively. By making use of the utility concept both the higher values of COP obtained for heating and cooling modes are optimized to get a single optimum COP for heating and cooling modes. A single optimum COP value of 3.92 has been obtained for both space heating and cooling operations. (C) 2013 Elsevier Ltd. All rights reserved.