As the term "pump" implies, a heat pump moves heat from one place to another. It reverses the natural flow of heat from a warmer to a cooler place. Heat pumps use the refrigeration cycle to accomplish this. The advantage of pumping heat is that it takes less electrical energy than it does to convert electrical energy into heat (as in electric furnaces, baseboards and radiant heaters). In fact-in mild winter temperatures you can get three times as much heat out of each watt of electricity as you get from an electric furnace. Energy cost savings differ for each installation. Properly sized and installed heat pumps can reduce heating costs by 30 to 50 percent compared to electric furnaces.
Heat pumps are named for their source of heat. Air-source heat pumps get heat from the outdoor air. There also are water-source heat pumps, which get heat from water, usually well water. Ground-source heat pumps get their heat from ground below the frost line. Most heat pumps have two main parts; the outdoor unit and the indoor unit. The outdoor unit includes the outdoor heat exchanger, the compressor and a fan. This is where the heat from the air outside is picked up during the heating season, and where the heat from inside the house is rejected during the cooling season. The indoor unit contains the indoor heat exchanger and the fan that distributes heated or cooled air to the distribution system of the house. Some systems have a second indoor cabinet that contains the compressor.