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Heat Pumps Explained: How They Warm and Cool Your Home

Heat pumps move heat instead of burning fuel, delivering 3–4× more heating than the electricity they use. How they work, costs and incentives.

WaterFuelAndSolarEnergy.com Editorial Team Updated January 2025 8 min read

A heat pump uses a small amount of electricity to move heat from outside into your home (or out of it in cooling), typically delivering 3–4 units of heating for every 1 unit of electricity — far more efficient than resistive heaters.

Why efficiency beats resistance

  • Resistive heaters convert 1 kWh of electricity into ~1 kWh of heat
  • Heat pumps can move 3–4 kWh of heat per 1 kWh used
  • That “coefficient of performance” (COP) is the whole story
  • Pair with solar to run heating largely on sunshine

Typical heating efficiency

SystemEfficiencyNotes
Electric resistance~100%1:1 heat per kWh
Heat pump (air-source)~300–400%COP 3–4, varies with temp
Gas furnace~90–95%Uses fuel, higher CO2
Are heat pumps good in cold climates?
Modern cold-climate heat pumps work well well below freezing, though efficiency drops. Their performance near 0°F is far better than older models.