A one-dimensional heat transfer model for the vertical borehole system is derived in this study to predict the thermal behavior of the system and surrounding soil. In this model the U-tube is replaced with one effective tube of effective diameter which is surrounded by concentric grout region. All thermal resistances of borehole are counted in the grout region with effective thermal conductivity of grout. Effective thermal conductivity of grout and sand are calculated through parameter estimation. The validity of this model is accomplished through comparison of the predicted temperature profiles of the model with experimental data.