A heat pump is an HVAC system that can both heat and cool. It works by transferring heat between the indoor and outdoor air. In the summer, the heat pump extracts heat from inside your home and releases it outside, just like a traditional air conditioner. In heating mode, it reverses this process, effectively moving heat from outdoors to indoors to heat your space. Heat pumps are highly efficient for both heating and cooling, making them a good alternative to traditional furnaces and air conditioners, especially in mild to moderate climates.