What Is a Heat Pump?
A heat pump is an electric system that heats and cools your home by moving heat instead of burning fuel — making it 2–4× more efficient than a furnace.
Rather than burning gas or oil, a heat pump uses a refrigerant cycle (like your fridge) to transfer heat from one place to another. In winter it pulls warmth from the outside air or ground and moves it indoors; in summer it reverses, removing heat from your home to cool it. Because it's just moving existing heat, it can deliver 3–4 units of heat for every unit of electricity it uses.
How does a heat pump work?
A heat pump has an outdoor unit and an indoor unit connected by refrigerant lines. A reversing valve lets it switch between heating and cooling. See the full step-by-step guide →
Key components
Every heat pump has four core parts working in a loop: the compressor (pressurizes the refrigerant), the condenser coil (releases heat), the expansion valve (drops pressure and temperature), and the evaporator coil (absorbs heat). A reversing valve is what lets a heat pump switch between heating and cooling — the part a plain air conditioner lacks.
How efficient are heat pumps?
Heat pumps are rated by SEER2 (cooling), HSPF2 (heating) and COP (instant efficiency). A COP of 3 means 3 units of heat per unit of electricity — 300% efficiency, versus 80–97% for a gas furnace. Look for ENERGY STAR models, and see our efficiency guide for the numbers to target.
Types of heat pumps
| Type | How it delivers heat | Best for | Cost |
|---|---|---|---|
| Air-source (ducted) | Central air handler + ducts | Homes with ductwork | $5k–$15k |
| Ductless mini-split | Wall/ceiling indoor heads | No ducts, room-by-room | $3.5k–$5k/zone |
| Geothermal | Buried ground loops | Lowest running cost | $18k–$45k |
| Heat pump water heater | Heats your hot water tank | Replacing an electric tank | $1.5k–$3k |
Pros and cons
Pros: one system for heating + cooling, very efficient, no combustion or carbon monoxide, qualifies for state and utility rebates. Cons: higher upfront cost than a furnace, performance and savings depend on your local electricity vs gas prices and climate.
Is a heat pump right for you?
Use our free tools to find out: what size you need, what it costs, and how much you'd save vs your current system.
FAQ
Is a heat pump the same as an air conditioner?
A heat pump is essentially an air conditioner that can run in reverse. In summer it cools like an AC; in winter it reverses to bring heat indoors. So one unit replaces both your AC and furnace.
Do heat pumps work in cold climates?
Yes. Modern cold-climate (hyper-heat) heat pumps keep working efficiently well below 0°F. In very cold areas a backup heat source may kick in below the unit's balance point.
How much does a heat pump cost?
Most ducted air-source heat pumps cost $5,000–$15,000 installed; ductless mini-splits $3,500–$5,000 per zone; geothermal $18,000–$45,000 — before any state and utility rebates.
How long do heat pumps last?
Air-source units typically last 12–15 years, ductless mini-splits 15–20, and geothermal 20–25 years (ground loops 50+). Annual maintenance extends their life.
Do heat pumps save money?
Versus oil, propane or electric resistance, almost always. Versus cheap natural gas it depends on local energy prices — use our savings calculator to check.
Are heat pumps worth it in 2026?
For most US homes, yes — especially when replacing expensive fuels or an aging AC. Note the federal 25C/25D tax credits expired at the end of 2025, so factor in state and utility rebates instead.
Educational guide. Sources: US DOE / ENERGY STAR.