A one-dimensional thermal model is derived to describe the temperature field around a vertical borehole heat exchanger (BHEx) for a geothermal heat pump. The inlet and outlet pipe flows are modeled as one, and an effective heat capacity is added to model the heat storage in the fluid and pipes. Parameter estimation techniques are then used to estimate various parameters associated with the model, including the thermal conductivity of the soil and of the grout that fills the borehole and surrounds the U-tube. The model is validated using test data from an experimental rig containing sand with known thermal conductivity. The estimates of the sand's thermal conductivity derived from the model are found to be in good agreement with independent measurements.Units: Dual