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Abstract: In this paper an improvement of the model CaRM (CApacity Resistance Model) is presented to consider the borehole thermal capacitance, both of the filling material of the borehole and of the heat carrier fluid inside the ground heat exchanger. Several models, numerical and analytical, are available in literature for short time step analyses of ground-coupled heat pump systems. According to the modelling for the surrounding ground, the new approach for the inside of the borehole is based on electrical analogy. In this study the double U-tube ground heat exchanger is analyzed. The new model has been validated by means of a commercial software based on the finite elements method as well as measurements of ground response test, using a suitable plant system. In this last comparison, the contribution of the thermal capacitance of the circulating fluid is investigated, since it is frequently neglected in short time step simulations. In both cases, there is agreement between the CaRM results and data from numerical simulations and measurements as well. [Copyright &y& Elsevier]