A heat pump does not generate heat, rather it moves the heat from one place to another. Unlike a furnace which produces heat, heat pumps absorb heat from outside air in cold temperatures and transfer it inside the home. When in cooling mode, a heat pump operates in the same way as an air conditioner, extracting heat from the indoor air and discharging it outdoors. An advantage of installing an air source heat pump is that it is more energy efficient than a furnace, meaning it can help reduce your electricity bills.
