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How do heat pumps work? - National Grid

Author: Ruby

Sep. 08, 2025

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How do heat pumps work? - National Grid

​In the winter, a heat pump provides heating by extracting heat from outside a building and moving it inside. In the summer, it can provide cooling by moving heat from indoors to the outside.

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Find out about the different types of heat pumps, how they work and why they could help to tackle climate change.
 

How a heat pump works

A heat pump uses the same technology as an air conditioner, which cools your home using a refrigerant. The only major difference between an air-conditioner and a heat pump is that a heat pump has a reversing valve, which allows it to also heat your home.

In heating mode, a heat pump works like an air conditioner in reverse; instead of keeping your home cool, it uses the refrigerant to warm your home.
 

Here’s a step-by-step process of how heat pumps work:

  1. Heat could be sourced from the air outside or warmth from the ground. This is blown or pumped over the heat exchange surface of the exterior part of the heat pump.
     

  2. This heat is warm enough to cause the refrigerant liquid in the heat pump to evaporate and turn into a gas. 
     
  3. This gas is then moved through a compressor, which increases the pressure, causing its temperature to rise.
     
  4. The gas (now heated) is passed over the internal heat exchange surface. This heat can then be either blown around the home's interior or transferred into a central heating or hot water system.
     
  5. As the heat is transferred into the home, the gas falls in temperature, causing it to return to a liquid state.
     
  6. The cycle of reverse refrigeration repeats until your home reaches the required temperature setting on your thermostat.
     

If heat pumps obtain their heat from outside, how do they provide heat on a cold day?

Even when it’s very cold outside, some heat energy still exists. Heat pumps are effective at taking this heat energy from the ground or air around a building and using it to provide heat for your home or business.

For heat pumps to work at their best, it’s also important that the building has good energy efficiency installed, such as effective insulation.
 

What different types of heat pumps are there?

There are different types of heat pumps: air-source and ground-source.

Heat pumps can also be paired with fossil fuel gas furnaces; these systems are often referred to as hybrid heat pumps.
 

How does an air-source heat pump work?

  • Air-to-water heat pumps take heat from the outside air and feed it into your wet central heating system (similar to existing gas central heating). As the heat produced is cooler than that from a conventional furnace or boiler, you may need to install larger radiators or underfloor heating in your home to make the most of it. Air-to-water heat pumps may be best suited to new-build properties or those that are energy efficient.
  • Air-to-air heat pumps take heat from the outside air and feed it into your home through fans. This type of system can be used for heating but can’t produce hot water.
     

How does a ground-source heat pump work?

How does a hybrid heat pump work?

Why are heat pumps important in helping reach net zero?

Around 40% of global emissions come from buildings and most of these result from the ways we heat our homes and businesses.

To reach net zero carbon emissions and tackle climate change, we need to switch from heating that relies on high-carbon fuels to cleaner, low- or zero-carbon alternatives.

Heat pumps will help to achieve this for two main reasons:

  • Heat pump systems are designed to extract a greater amount of heat energy from the surrounding environment than the energy they consume to create heat. They can produce two to three times more heat output than they consume in electricity input.
  • As more and more electricity is generated from renewable energy sources like solar or wind power, the electricity used to power heat pumps is itself becoming cleaner.
     

Electric Heat Pump Technology: Your Questions Answered

Heat pumps, a “hot” topic in recent years, have a longer history than commonly perceived. The first modern, electrically-powered heat pump emerged in the s, and ground-source heat pumps gained popularity in the s. This innovation holds particular significance considering that over 35% of the United States' total energy consumption is allocated to heating and cooling structures, including buildings, residences, offices, and various facilities. Heat pumps distinguish themselves for their efficiency in maintaining comfortable temperatures across a range of climates in both residential and commercial settings. 

I recently had the opportunity to explore the world of electric heat pumps with Matt Baker, National Manager of Energy Efficiency and Electrification Program Development at Daikin Comfort Technologies North America, Inc. Our conversation spanned topics ranging from the basics of heat pump technology to the cutting-edge innovations propelling its widespread adoption. Join us on this enlightening journey where sustainability intersects comfort and innovation leads us toward a brighter, greener future. 

LB:What are electric heat pumps? How do they differ from other heat pump technologies (such as gas, ground-source heat pumps)? 

MB: Electric heat pumps are systems that utilize electricity to provide both heating and cooling functions. They operate by transferring heat from one place to another using a refrigeration cycle. Unlike other heat pump technologies such as gas or ground-source heat pumps, which rely on combustion or tapping into the earth's stable temperature, electric heat pumps solely use electricity as their energy source. This distinction sets them apart in terms of their energy input and the mechanisms through which they extract and distribute heat. 

LB:What are the best applications for HPs (i.e. heating in cold weather, restaurants, etc.)? 

MB: Heat pumps are incredibly versatile and can be applied in various settings. From residential homes to commercial establishments like restaurants, heat pumps offer efficient heating and cooling solutions. In colder climates, modern heat pumps are designed to operate effectively even in sub-zero temperatures, making them suitable for all-electric or dual-fuel applications. They can replace traditional heating systems like electric furnaces or baseboard heaters and are particularly beneficial in retrofit projects, where they outperform older units and enhance energy efficiency. 

LB:I’ve heard that not all contractors and installers are convinced that heat pumps can work reliably, cost effectively, and/or efficiently in cold climates. 

MB: While skepticism among some contractors and installers still exists (largely due to past experiences with older heat pump models), the newer technology has proven otherwise. Education plays a crucial role in dispelling myths and misconceptions surrounding heat pumps, especially regarding their reliability and efficiency in cold climates. Barriers to adoption can be overcome with concerted efforts to provide information and incentives. 

If you want to learn more, please visit our website Leading Technology Heat Pump Solutions.

LB: Heat pump sales are still lower than traditional heating systems. Why? What is the barrier to installation? 

MB: Several factors contribute to the lower adoption rate of heat pumps compared to traditional systems. Cost, lack of education and training among contractors, and the time investment required to learn about new products and technologies are common barriers. Educating homeowners about the benefits of heat pumps and providing incentives for their installation may help overcome these barriers and accelerate their adoption. 

LB: What is the market share of heat pumps vs. traditional heating/cooling? 

MB: The market share of heat pumps has been steadily increasing, especially with the inclusion of mini-split systems in recent data. However, comparing heat pump sales directly to traditional heating and cooling systems may not provide an accurate picture due to differences in technology and application. Nonetheless, the growth of heat pump installations, particularly in states promoting electrification, signifies a shift toward more energy-efficient heating and cooling solutions. 

Efficiency and Other Benefits 

The increasing prominence of heat pumps signifies their pivotal role in reducing consumer energy expenses, enhancing energy efficiency, and alleviating the impacts of the climate crisis. 

LB: What are the main advantages of using heat pumps for heating in residential settings? 

MB: Heat pumps offer a combination of energy efficiency, cost savings, comfort, versatility, and environmental benefits.  

  • Efficiency: Heat pumps are highly efficient, resulting in lower energy consumption and reduced utility bills compared to traditional heating systems.  
  • Comfort: Heat pumps provide consistent heating throughout the home, avoiding the fluctuations in temperature associated with traditional heating systems. They also operate quietly, enhancing indoor comfort. 
  • Versatility: Heat pumps provide cooling during the summer months, eliminating the need for a separate cooling system. Their compact size also saves space, both indoors and outdoors.   
  • Environmental: By utilizing electricity and leveraging energy-efficient technology, heat pumps play a pivotal role in reducing carbon footprints. Additionally, as renewable energy sources become more prevalent in the electric grid, the environmental benefits of heat pumps are further amplified, leading to a greener and more sustainable future. 
  • Grid stability: Modern, inverter-driven variable capacity heat pumps contribute to grid resilience by employing low-Watt "soft startups" and operating designs that allow them to hum along in "cruise control" which reduced demand on the grid, even during periods of extreme temperatures. 

LB: Are the advantages the same for commercial settings? Do they vary?  

MB: While the advantages of heat pumps in commercial settings are similar to those in residential settings, the scale, complexity, and specific requirements of commercial buildings require particular skill, care and attention to ensure successful application. Proper design, installation, and maintenance are essential for maximizing their benefits. 

LB: Is it an easy switch to go from traditional HVAC furnaces to heat pumps? 

MB: In most cases, transitioning from traditional HVAC furnaces to heat pumps is relatively straightforward. However, upgrades to electrical panels may be necessary, especially if the building does not already have air conditioning installed. Consulting with HVAC professionals can help streamline the process and ensure a successful transition. 

LB: Does climate affect the performance of heat pumps, and are they suitable for all regions? 

MB: Climate can indeed impact the performance of heat pumps, but modern systems are designed to operate efficiently in a wide range of climates. With proper sizing and installation, heat pumps provide reliable heating and cooling in almost any region. Additionally, advancements such as variable-speed compressors and improved refrigerants continue to enhance their performance and efficiency across diverse climate zones. 

LB: What type of incentives and rebates are available to assist homeowners with the installation of heat pumps?  

MB: Many states and local utility companies offer rebates and incentives for homeowners who install energy-efficient heating and cooling systems like heat pumps. These incentives may vary depending on location and can help reduce the upfront costs of upgrading to a heat pump. The Inflation Reduction Act (IRA) modified and extended several existing tax credits and allows homeowners to make claims for energy-efficient improvements. There will also be rebates made available through the HOMES and HEEHRA programs, once those programs become available on a state-by-state basis later this year and into . Homeowners will be able to take advantage of both the tax rebates and tax incentives, but they cannot receive both HOMES and HEEHRA rebates for the same upgrades.

Heat Pump Innovations

Technology is constantly evolving, with numerous developments dedicated to enhancing the effectiveness, sustainability, and overall functionality of heat pumps. There are technologies today that can address almost any homeowner's need. As technology continues to advance, heat pumps are likely to play an increasingly integral role in the quest for energy-efficient and environmentally-friendly HVAC solutions. 

LB: What trends do you see in the future of heat pump technology and its adoption in the residential and commercial sectors? 

MB: The future of heat pump technology lies in inverter-driven variable capacity systems, which offer enhanced efficiency and comfort. As electrification efforts continue and energy efficiency becomes increasingly important, heat pumps are poised to play a vital role in both residential and commercial heating and cooling systems. With ongoing advancements and greater awareness, heat pump adoption is expected to rise, leading to a more sustainable and energy-efficient future. 

LB: What are some common misconceptions or myths about heat pumps that you'd like to debunk? 

MB: One common misconception is that all heat pumps are the same. There are significant differences in performance and efficiency between different models and technologies. Additionally, the myth that heat pumps require backup heating units is outdated, as modern variable capacity systems offer reliable heating even in extreme conditions. 

Heat pumps have emerged as a vital technology in our shift toward more sustainable and energy-efficient heating and cooling solutions. Their versatile application extends across residential, commercial, and industrial sectors. Heat pumps will undoubtedly remain central to our quest for sustainable heating and cooling solutions. Through ongoing innovation and collaboration, we can expect further advancements, increasing adoption rates, and ultimately, a brighter, more environmentally-conscious future for all. Keep an eye out for the next installment in our blog series for deeper insights into gas heat pumps and an exclusive interview with a manufacturer. 

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