A heat pump is an air conditioner that provides heating and cooling. 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, absorbing heat from the outside air (even in cold temperatures) and transferring it inside to warm your home. 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.