What is a Heat Pump & How Does It Work?
A heat pump is a single system that heats your home in winter and cools it in summer using the same fundamental process: moving heat from one place to another rather than generating it through combustion. This approach can make heat pumps highly efficient in many situations, though overall performance and operating costs depend on factors such as climate, utility rates, system design, and the home's energy efficiency.
Understanding how a heat pump works also explains heat pump equipment efficiency numbers, why cold temperatures reduce their heating output, and when a heat pump alone is sufficient versus when pairing one with a gas furnace makes more sense.
The Core Principle: Moving Heat, Not Making It
A heat pump uses a refrigerant cycle to extract heat energy from air, ground, or water and transfer it to where you want it. Because it moves existing heat rather than creating new heat, it can deliver significantly more thermal energy than the electrical energy it consumes. A heat pump with a coefficient of performance (COP) of 3.0 delivers three units of heat for every one unit of electricity used. That is a 300 percent efficiency figure.
This is the same process that makes your refrigerator work. A refrigerator extracts heat from its interior and releases it into the room. A heat pump does the same thing between the outdoors and your home, but with one crucial addition: a reversing valve that allows it to flip the direction of heat flow on demand.
The Four-Stage Refrigerant Cycle
The heat pump operates through a continuous loop of four stages. Understanding them makes every other aspect of heat pump behavior easier to follow.
Stage 1: Compression. The refrigerant starts as a cool, low-pressure vapor. The compressor squeezes it, raising both its pressure and temperature significantly. It exits the compressor as a hot, high-pressure gas.
Stage 2: Condensation. The hot gas flows to the condenser coil, where it releases heat to the surrounding medium. In heating mode, this coil is indoors, releasing heat into your home. The refrigerant cools as it gives up heat, eventually condensing from gas to liquid.
Stage 3: Expansion. The liquid refrigerant passes through an expansion valve, which drops the pressure sharply. This rapid depressurization makes the refrigerant extremely cold.
Stage 4: Evaporation. The cold refrigerant enters the evaporator coil, where it absorbs heat from the surrounding medium. In heating mode, this coil is outdoors, extracting heat from outside air. The refrigerant absorbs that heat and evaporates back into a gas, returning to the compressor to start the cycle again.
The reversing valve is what transforms this cooling cycle into a heating system. By switching the direction of refrigerant flow, it swaps which coil acts as the condenser and which acts as the evaporator. In heating mode, the outdoor coil absorbs heat from outside air. In cooling mode, the indoor coil absorbs heat from indoor air and the outdoor coil releases it outside, exactly like a conventional air conditioner.
Types of Heat Pumps
Not all heat pumps draw heat from the same source. The three main types differ in where they extract heat from, with significant implications for efficiency, cost, and installation complexity.
Air-source heat pumps extract heat from outdoor air. They are by far the most common residential type: easier to install than other configurations, available in both ducted split-system and ductless mini-split formats, and effective in a wide range of climates. The ductless mini split is a specific form of air-source heat pump that delivers conditioned air directly to individual rooms without ductwork, making it particularly well-suited to room additions, older homes without existing ducts, and zone heating applications.
Ground-source (geothermal) heat pumps extract heat from the ground through a buried loop of fluid-filled piping. Because ground temperatures remain relatively stable year-round at 45 to 55 degrees Fahrenheit at typical loop depths, ground-source systems maintain consistent efficiency regardless of outdoor air temperature. Geothermal heating delivers the highest efficiency of any heat pump type, but installation involves significant excavation or drilling and costs considerably more than air-source systems.
Water-source heat pumps extract heat from a body of water, such as a pond, lake, or well. Like ground-source systems, they benefit from stable source temperatures, but they are limited to properties with suitable water access.
For many homeowners, air-source heat pumps are the most practical option because of their lower installation cost and broad availability. However, the right system depends on factors such as local climate, property conditions, existing ductwork, and budget. The information below applies primarily to air-source systems.
Efficiency Ratings: COP, SEER2, and HSPF2
Heat pump efficiency is expressed in several ways depending on what is being measured.
COP (Coefficient of Performance) is the instantaneous ratio of heat output to electrical input at a specific set of conditions. A COP of 3.0 at 47 degrees Fahrenheit means the system delivers 3 BTU of heat for every 1 BTU of electricity consumed. COP falls as outdoor temperature drops, because the heat pump must work harder to extract heat from colder air. At 17 degrees Fahrenheit, the same system might have a COP of 1.8 to 2.0. This temperature dependence is fundamental to understanding when heat pumps lose their efficiency advantage over gas heating.
SEER2 (Seasonal Energy Efficiency Ratio 2) measures cooling efficiency averaged across a full cooling season. Higher numbers indicate better efficiency. The current federal minimum for split-system heat pumps is 14.3 SEER2. ENERGY STAR certification requires at least 15.2 SEER2. Premium systems reach 20 to 28 SEER2 or higher.
HSPF2 (Heating Seasonal Performance Factor 2) measures heating efficiency across a full heating season, accounting for the varying outdoor temperatures that occur throughout winter rather than a single test point. The minimum for qualifying heat pumps is 7.5 HSPF2. For cold-climate certified systems, the threshold rises to 8.1 HSPF2 for ducted systems. Seasonal average COP can be approximated from HSPF2 by dividing by 3.412. An HSPF2 of 9.0 implies a seasonal average COP of roughly 2.64.
Both SEER2 and HSPF2 use updated test procedures introduced in 2023 that more accurately reflect real-world conditions, including realistic duct system static pressure and variable fan speeds. Understanding MERV ratings for air filters connects to heat pump performance: a filter that restricts airflow reduces the system's ability to exchange heat at the indoor coil, degrading measured efficiency.
Cold Weather Performance and Cold-Climate Models
The most persistent misconception about heat pumps is that they do not work in cold weather. This was substantially true of older equipment and remains partially true for standard models, but modern cold-climate heat pumps have changed the picture considerably.
Standard air-source heat pumps lose efficiency as temperatures drop and typically cannot maintain their full heating capacity below about 25 to 30 degrees Fahrenheit. They may have supplemental electric resistance heating strips that activate in extreme cold, but electric resistance heating at 1-to-1 efficiency is expensive to run compared to even a reduced-COP heat pump.
For households in climates with regularly sub-freezing winters, a dual fuel heating is often worth considering. It pairs a heat pump with a gas furnace, using the heat pump during milder conditions and automatically switching to the furnace when temperatures drop. Depending on local fuel prices, climate conditions, and household comfort preferences, this approach can provide an effective balance of efficiency, performance, and operating cost.
Dehumidification: A Less-Discussed Heat Pump Advantage
When a heat pump operates in cooling mode, it removes humidity from the air as a byproduct of cooling the indoor coil below the dew point. Moisture condenses on the coil and drains away through the condensate line. This dehumidification happens continuously during cooling operation and is one reason heat pumps are generally better at humidity control than some alternatives.
Variable-speed heat pumps extend this advantage. By running at lower speeds for longer cycles rather than blasting full output and shutting off, they keep the indoor coil cold and effective at dehumidification for more of the time the system is running. The result is both better humidity control and more even temperatures throughout the home. Humidity management ties directly to indoor air quality because high humidity amplifies the effect of VOCs and other airborne compounds that accumulate in tightly sealed homes. Variable speed air handlers complement this capability by moving air more consistently, improving both comfort and air quality.
Heat Pump Maintenance
A heat pump requires consistent maintenance to operate at its rated efficiency. The most common maintenance neglect, and the most preventable cause of reduced performance, is running with a dirty or clogged air filter. A restricted filter reduces airflow across the indoor coil, limiting heat exchange and forcing the compressor to work harder. Right air filter for a heat pump means selecting a MERV rating that provides adequate filtration without restricting the airflow the system requires.
Annual professional maintenance covers refrigerant charge verification, evaporator and condenser coil cleaning, condensate drain inspection, electrical connection checks, and outdoor unit clearance. Because the heat pump runs year-round for both heating and cooling, it accumulates more operating hours than a furnace that only runs in winter. This is why heat pump service typically happens twice per year in systems with heavy seasonal use, or at minimum annually. Including heat pump service in the seasonal HVAC maintenance checklist alongside the annual furnace tune-up keeps both systems current heading into heating season.
The outdoor unit needs seasonal attention: clearing leaves and debris from around the unit each fall, and inspecting for ice buildup during the defrost cycles that are normal operation in cold weather. A heat pump that does not properly defrost its outdoor coil loses heating efficiency and should be inspected for a faulty defrost control. Heat pump short cycling is a related symptom that can indicate refrigerant issues, oversizing, or control problems worth diagnosing early.
The Refrigerant Transition
Heat pumps manufactured since January 2025 use A2L refrigerants such as R-454B and R-32 rather than R-410A, which is being phased down under the AIM Act due to its high global warming potential. A2L refrigerants have substantially lower environmental impact than R-410A. They are mildly flammable, which changes handling requirements for technicians but does not create safety concerns in properly installed residential systems.
If your heat pump uses R-410A, it continues to do so through its service life. Refrigerant cannot be swapped between system generations. If you are purchasing new equipment now, it will use an A2L refrigerant.
Ready to Learn What Heat Pump Fits Your Home?
One Hour Heating & Air Conditioning provides heat pump installation and service including system consultation, equipment selection, and year-round maintenance. Call us at (380) 257-2402 or book an appointment online. We're available 24/7 and always on time.
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