Heat pumps aren’t a brand-new technology anymore. What’s changed is how well they work (including in colder weather) and how many options homeowners have, from ductless mini-splits to high-efficiency, variable-speed systems. If you’ve heard the term and wondered what a heat pump actually does, here’s the simple idea: it doesn’t “make” heat like a furnace. It moves heat, which can make it an efficient way to keep your home comfortable year-round.

What are heat pumps and how do they work?

In general, a heat pump extracts heat from one place and transfers it to another (similar to how an air conditioner or refrigerator cools). In warmer months, a heat pump takes heat from inside a home and relocates it outdoors, helping to make your home cooler. In cooler months, it pulls heat from the outdoor air (even when it feels cold) and transfers it indoors. Some newer models use variable-speed (inverter) compressors that adjust output in small increments for steadier comfort and better efficiency.

Do they save energy?

Because heat pumps move heat instead of generating it, they can be very efficient — especially when replacing electric resistance heat (like baseboard heaters). The U.S. Department of Energy notes that today’s heat pumps can cut electricity use for heating by up to 75% compared with electric resistance heating, though actual savings depend on your climate, home, and the system you’re replacing.

Heat pumps for larger homes can save energy with a zone-heating feature, warming only rooms that are in use. High-efficiency heat pumps also dehumidify better than standard systems, resulting in less energy usage.

Is there more than one type?

Four primary types of heat pumps exist:

• Air-to-air or air-source heat pumps are the most common and are powered by electricity. They have an outdoor compressor/condenser unit that warms or cools the coils inside the air handler. It then circulates the warmed or cooled air through the system and pushes the air through ducts back into rooms. For homes without air ducts, air-source heat pumps are also available in a ductless version called a mini-split heat pump.
• Absorption heat pumps are similar to air-source heat pumps except instead of using electricity to operate, they use alternative energy sources such as natural gas, propane, or solar- or geothermal-heated water.
• Geothermal/ground source heat pumps can heat, cool, and even supply hot water to a home by transferring heat to or from the ground (or nearby water source), according to Energy.gov. They have higher install cost, but lower operating costs since they take advantage of relatively constant ground or water temperatures. They are typically more efficient, have steady performance and can be used in more extreme climates than air-source heat pumps, though air-source technology has improved — cold-climate air-source heat pumps are now designed to keep providing heat efficiently at temperatures below freezing, making them a realistic option in many northern states.
• Air-to-Water heat pumps are a special type of air-source heat pump called a “reverse cycle chiller” that generates hot and cold water rather than air, allowing it to be used with radiant floor heating systems.

What to ask:

• Ask about cold-climate performance for your area (and what you’ll need for backup heat).
• Confirm the system is right-sized (bigger isn’t always better).
• If you’re choosing ductless, ask about zoning and placement for comfort.
• Ask what electrical work (panel/circuit) might be needed before installation.

Heat pumps are electric appliances, so safe installation matters. Use a qualified contractor to determine the best heat pump system for your home, and if your installer recommends electrical panel upgrades, have them done by a licensed electrician.

To learn more about energy efficiency, as well as safety around electricity, go to SafeElectricity.org.