What is a Heat Pump?

By Anne Fonda

An air source heat pump (ASHP) is an outdoor HVAC component that both heats and cools your home. It looks very much like an outdoor AC unit, but does more. 

Unlike an air conditioner, which only cools, a heat pump system can provide both cooling AND heating. It is paired with an indoor air handler in mild climates and a gas furnace in areas with colder winters. And unlike a gas furnace, the heat pump uses electricity and the refrigeration cycle rather than burning fossil fuel. 

A mini-split heat pump, also known as a ductless heat pump, uses the same technology but it’s part of a ductless system rather than a traditional central heating and cooling system. American Standard recommends Mitsubishi ductless mini-split systems. They are highly efficient systems suitable for homes or rooms without ductwork. 

A heat pump uses heat energy and, through a heat exchange process, transfers it to a cooler environment. This means the air source unit takes the heat from the air outside and transfers it into your home in the winter. It then reverses the process and moves heat inside your home to the outside in the summer.  

A split system heat pump paired with an air handler is best suited for milder climates without harsh winters. But you can also use heat pumps in cold climates. With a dual-fuel heat pump system, you pair a heat pump with a furnace. In this hybrid system, the heat pump cools in the summer and heats well into the fall and winter, but when temperatures get too cold, the gas furnace kicks in to provide more efficient heating until temperatures rise and the heat pump takes over again. 

Cold climate heat pumps (CCHPs) are engineered to provide heating even in extreme temperatures and are well suited for the northern tier of states. You may still want to pair one with a gas furnace for backup heat. Our new Platinum 20 Cold Climate Heat Pump can provide 105% of your heating needs at 5°F and 84% at -20°F. It was field-tested in multiple northern states to help ensure reliability.  

We also have low-profile heat pumps that can reliably heat your home in colder temperatures.  

Electric heat pumps are known for their efficiency. Some of the most efficient models can save you up to 50% on your heating and cooling bills when installed as part of a matched system replacing older units.  

Be sure to check the SEER2 cooling efficiency and HSPF2 heating efficiency ratings to get the most efficient unit possible. The higher the ratings, the more efficient the unit is. It can save you money on energy costs for years to come. 

A heat pump can heat your house comfortably, especially if you live in an area of the country with milder winters, such as Charlotte or Houston. Since heat pumps are electric, you can also reduce your carbon footprint by not burning natural gas. 

For colder climates, a heat pump paired with a gas furnace can keep you warm all winter long, no matter how low the temperatures go. Your HVAC system will automatically switch to the most efficient heating unit based on the outdoor ambient temperature. 

Despite the confusion with the name, a heat pump can cool your home just as efficiently as a central air conditioner. The main difference is that the heat pump can also heat your home, while the AC unit cannot. 

The best way to know what size unit you need is to consult with an HVAC professional. They will do some precise calculations, taking a range of factors into account. However, you can get an idea of the size you need based on the square footage of your home, as seen in the table below. 

Your heat pump installation cost will vary based on several factors, including: 

A more energy-efficient heat pump will cost more upfront, but use less energy to heat and cool your home, resulting in long-term energy savings. Similarly, a 5-ton capacity heat pump will cost more than a 2-ton heat pump. The best way to find out the cost of a heat pump system is to get quotes from several HVAC contractors near you. They may have special manufacturer’s rebates and HVAC financing available as well.  

You can check out our Pricing Guide for some price ranges.  

Keep in mind that you can help offset the cost of a new unit by selecting one that qualifies for heat pump rebates. Available rebates will vary based on your location. Some utility companies offer rebates for energy-efficient HVAC upgrades.  

Some states, but not all, are participating in the Department of Energy’s (DOE) High-Efficiency Electric Home Rebate (HEEHR) and the Home-Owner Managing Energy Savings (HOMES) programs. These home energy rebate programs were authorized by the Inflation Reduction Act of 2022 (IRA).  

Regular maintenance can help the system operate at peak performance. Change your filters regularly and schedule HVAC maintenance each year. With proper maintenance, you can expect a new unit to last for an average of 15 years. 

Browse American Standard heat pumps. 

A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need. 

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism. When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.

Expert review by Chelsea Hudson, Product Manager, Heat Pumps and System Ratings