What is a heat pump and how does it work?

A heat pump is an all-in-one heating and air conditioning system. During summer, the heat pump extracts heat from the inside of your house and releases it outside. During the colder months, it reverses its operation by absorbing heat from the outdoor air (even when it is freezing cold) and transfers it indoors. Heat pumps work using electricity and they do not create heat or cold - they simply transfer it between your home and the outside.