WHAT IS A HEAT PUMP? Technically, a  is a mechanical-compression cycle refrigeration system that can be reversed to either heat or cool aInstallation for this type of system typically consists of two parts: an indoor unit called an air handler and an outdoor unit similar to a central air conditioner, but referred to asA compressor circulates refrigerant that absorbs and releases heat as it travels between the indoor and outdoor units. HOW DOES A HEAT PUMP WORK? Think of a heat pump as a heat transporter constantly moving warm air from one place to another, to where its needed or not needed, depending on the season. Even in air that's seems too cold, heatWhen it's cold outside a heat pump extracts this outside heat and transfers it inside. When it’s warm outside, it reverses directions and acts like an air conditioner, removing heat One advantage of a heat pump is that it moves heat instead of generating heat, giving you more energy efficiency.