In a method of installing a borehole heat exchanger in the earth, a channel is formed in the earth by means of a pushing device, thereby causing a compression of the earth as a result of earth being displaced, and inserting a borehole heat exchanger in the channel, causing an elastic component of the earth to move toward the heat exchanger as the earth relaxes in order to provide an intimate contact between the earth and the heat exchanger. Installation of the borehole heat exchanger in elastically displaced earth ensures not only a stable and lasting securement of the heat exchanger in the earth but also the intimate contact between earth and heat exchanger wall so important for heat exchanger.