How Does a Heat Pump Work? A Look Inside the Heat Pump System

How Does a Heat Pump Work? A Look Inside the Heat Pump System

    A lot of homes in the Miami Valley rely on air source heat pumps for year-round comfort, but few homeowners understand how they actually work. In this guide, we’ll explain how heat pumps work, their benefits AND limitations, and whether a heat pump is right for your home.

    What is a Heat Pump?

    A heat pump is an HVAC system that heats your home by transferring heat energy from one place to another rather than burning fuel like natural gas or propane. It cools your home during hot seasons exactly like a standard A/C, moving unwanted heat energy from indoors to outdoors. Then, in cold seasons, it reverses this same process, drawing heat from outdoor air and moving it inside to warm your home.

    A heat pump system is just like a central air conditioner but with a reverse gear. The “pump” in heat pump refers to the compressor pumping refrigerant around in a circle, transferring heat energy from one place to another. Because it can change directions, this energy efficient tech can be an all-in-one heating and cooling system.

    We’ll be focusing on air source heat pumps, the most common choice for homeowners. But remember that there are several other types like ground source heat pumps, geothermal heat pumps, and absorption heat pumps.

    Inside a Heat Pump – Parts and Anatomy
    They key parts inside a Trane heat pump

    How Does a Heat Pump Work?

    Understanding the individual steps in the refrigeration cycle can help you understand how a heat pump is able to extract heat from frigid winter air in an energy efficient way. It also helps you compare different cooling and heating systems to know whether a heat pump is the best fit for your home. Here’s how it works to keep your home at the right temperature year-round:

    Cooling Mode (Summer)

    In cooling mode, a heat pump works just like your typical air conditioning system:

    Step 1: Warm indoor air passes over your indoor coil (which contains cold refrigerant).

    Step 2: Refrigerant in the indoor coil absorbs unwanted heat from the warm air in your home.

    Step 3: The added heat turns the refrigerant from a liquid into a vapor/gas. That’s why we call the indoor coil the “evaporator.”

    Step 4: The compressor in your outdoor unit pulls in this cool low-pressure vapor and compresses it. This 3x increase in pressure “concentrates” the thermal energy, raising the temperature.

    Step 5: The refrigerant then flows through the outdoor coil which releases its heat into the outside air. As the refrigerant cool back down, it condenses from hot vapor into cool liquid. That’s why we call the outdoor coil the “condenser.”

    Step 6: The cool liquid heads back indoors where the cycle repeats, keeping your home cool and comfortable all summer!

    Heating Mode (Winter)

    In heating mode, think of an air conditioner that cools the outdoors. Air source heat pumps work in reverse in the winter, absorbing heat from outdoor air and pumping the hot refrigerant indoors to warm your home. Heat pumps work by transferring heat instead of burning fuel.

    It’s essentially the same process as cooling mode, just in reverse:

    Step 1: The TXV in the outdoor coil lowers the refrigerant pressure, making it even colder than the air.

    Step 2: The super cold refrigerant absorbs thermal energy from the outdoor air – even when temps are below freezing!

    Step 3: Your outdoor unit’s compressor pressurizes the refrigerant, raising its temperature (often to more than 130°F).

    Step 4: The hot gas refrigerant is pumped inside, where it moves through the indoor coil and releases heat into your home.

    Step 5: As the refrigerant releases heat, it cools down, returns to a liquid state, and gets pumped back outside.

    Step 6: To absorb heat from the cold outdoor air, the refrigerant must be even colder. The cold outdoor coil will collect moisture from the air and gradually create a layer of frost, blocking air flow. As the heat pump senses icing, it starts a defrost cycle to quickly melt the ice and return to normal operation. Read more about defrost cycles here.

    Step 7: The cycle repeats, keeping your home warm and cozy throughout the winter.

    Heat Pumps look just like an A/C on the outside
    Heat pumps look just like an air conditioner on the outside!

    What Does a Heat Pump Look Like?

    Air source heat pumps look exactly like an air conditioner on the outside! They are a metal box outside your home with a fan inside the unit. The only physical difference is that a heat pump has a reversing valve, but that part isn’t visible unless you open the thing up.

    Because they look so similar, a lot of owners think they have an air conditioner when it’s actually a heat pump! The easiest way to tell is by checking your thermostat! If you see settings like Emergency Heat or Aux Heat, you have a heat pump (or at least a heat pump thermostat). Another way is to check your outdoor unit in the winter – if it’s running while your home is heating, it’s a heat pump.

    What’s Inside a Heat Pump?

    We’ve covered the basics of how a heat pump works. Now let’s take a look under the hood:

    • Compressor – The Heart of the System

    The compressor pumps refrigerant through the system, pressurizing it to raise the temperature so it can release heat. Think of compression like concentrating the existing heat into a smaller space. It doesn’t actually create heat, it just raises the temperature.

    • Refrigerant – The Heat Mover

    Refrigerant is a fluid that transfers heat through the system. It absorbs heat when it evaporates, and releases heat when it condenses back into a liquid. This cycle repeats continuously, allowing the heat pump to either cool your home in summer or warm it in winter.

    • Evaporator and Condenser Coils – The Heat Exchangers

    A heat pump system has two coils that transfer heat between the air and the refrigerant —one inside and one outside your home. These copper or aluminum coils hold refrigerant, which absorbs heat in one coil and releases it in the other. Thin tube walls make these heat exchangers more efficient and prone to leaks. To learn more, check out this blog about coil leaks.

    • Reversing Valve – The Mode Switcher

    This small but mighty part looks like the valves on a trumpet. It’s what sets the heat pump apart from a regular air conditioner. The reversing valve changes the direction of refrigerant flow, allowing the system to switch between heating and cooling. Without it, a heat pump would simply be an air conditioner.

    • Expansion Valve – The Pressure Dropper

    The expansion valve restricts the flow of refrigerant into the evaporator coil. This drops the pressure and boiling point which helps it absorb heat efficiently. A heat pump has an expansion valve or TXV on both the indoor and outdoor coils – one for heating and one for cooling.

    Heat Pump Reversing Valve
    The heat pump reversing valve is the part that makes it unique

    Are Heat Pumps Worth It? Pros and Cons for Homeowners

    Air source heat pumps are an awesome solution for year-round comfort, offering high efficiency and versatility. But, like any piece of technology, they have their pros and cons. Let’s break down the biggest advantages and potential disadvantages of a heat pump so you can decide if it’s the right choice for your home.

    Pros

    Single Unit For All Seasons

    Having one system handle both your heating and cooling saves you the hassle of buying and maintaining two separate units.

    Energy Efficiency

    Because they transfer heat (instead of creating it by burning fuel or using high-wattage resistance), heat pumps can be 2–4 times more energy efficient than a traditional heating system. Lowering energy costs can be a great way to balance out the upfront cost of a heat pump system.

    Less Maintenance

    Because there’s no combustion, a heat pump has fewer components that can break compared to units like a gas furnace. You also don’t have to worry about carbon monoxide like other heating systems.

    Seamless Hot Water Setup

    Some heat pump models can connect to your water heater system, efficiently turning waste heat into hot water.

    Cons

    🚫 Longevity

    Because a heat pump runs in both winter and summer, it has nearly double the runtime compared to a standard air conditioner. This leads to the average heat pump unit wearing out faster than an air conditioner unit.

    🚫 Noise Levels

    During winter, the outdoor heat pump unit has to work harder (especially older or cheaper models) and can sound a bit noisy on cold, quiet nights.

    🚫 Performance in Extreme Cold

    Modern cold-climate heat pumps can handle subzero temperatures quite effectively, but old systems may struggle around 30°F and freezing temps can affect efficiency for any heat pump. If you live in an area with extreme subzero winters, a backup heat source or a hybrid system might be necessary.

    Considerations for Ohio Homeowners

    Heat pumps excel in mild climates, but Ohio’s harsh winters—averaging 20+ nights below 10°F —test their limits. The thermal balance point, where heat output equals home heat loss, often falls above 30°F for a correctly sized unit. Below this, supplemental heat bridges the gap, diminishing efficiency gains.

    Ground source heat pumps, which pull thermal energy from underground temperatures, can perform better in cold climates but they’re also more expensive and difficult to install.

    For cost-conscious homeowners with gas access, a high-efficiency gas furnace remains competitive. Pairing it with a heat pump sized for cooling offers a hybrid approach: gas for winter savings, electric for summer and shoulder seasons. Environmental impact hinges on the grid—Ohio’s coal reliance offsets some “green” benefits of electrification.

    Curious about the cost of a heat pump system? Check out our heat pump installation costs here. Investing in the right cooling and heating system can keep your home comfortable and efficient for years to come!

    Contact Us

    • Please let us know any other information about your request
    David Watkins

    David Watkins

    David Watkins is a third-generation HVAC professional with more than 30 years of hands-on experience. He grew up around all things heating and air conditioning, working alongisde his family at Watkins Heating & Cooling.

    Over the decades, David honed his expertise in airflow, duct design, and system engineering, consistently drawing on his math and science background to develop effective solutions for both residential and commercial clients.

    Today, David serves as CEO of Watkins Heating & Cooling, leading a high-performing team widely recognized for their high-quality HVAC work. David is NATE certified and holding multiple additional accreditations in groups that include the Air Conditioning Contractors of America (ACCA) and the Refrigeration Service Engineers Society (RSES).

    David is also highly trained in leadership. He is an active member of the C12 Group for Christian business leaders and serves on the board of LoveServes International, highlighting his commitment to community impact and servant leadership. David’s combination of technical excellence and guiding values shape the high standards at Watkins Heating & Cooling.

    Other Recent Blog Posts

    Inside a Heat Pump – Parts and Anatomy
    Heat Pumps

    How Does a Heat Pump Work? A Look Inside the Heat Pump System

    A lot of homes in the Miami Valley rely on air source heat pumps for year-round comfort, but few homeowners understand how they actually ...
    Read More
    Trane HVAC Heat Pump Indoor Outdoor Unit Combo
    Air Conditioners

    Heat Pump AC Combo: What’s the Best Heating & Cooling Setup for Your Home?

    Do you need a furnace or air conditioner with your heat pump? The HVAC industry tends to make things confusing, and many homeowners aren’t ...
    Read More
    R32 and R454B Refrigerant
    Industry Updates

    R32 and R454b Refrigerant: The New Air Conditioner Refrigerants

    It seems like yesterday that the HVAC industry switched from R-22 to R-410a due to EPA regulations. That shift happened in 2010 to lower ...
    Read More
    Air Conditioner Tax Credit Rebate
    Air Conditioners

    What HVAC System Qualifies for Tax Credit 2025?

    Homeowners in Ohio have a fantastic opportunity to save money on new HVAC systems with federal tax credits available throughout 2025. If you're considering ...
    Read More
    SEER2 EnergyGuide Air Conditioner Rating Label
    HVAC Replacement

    SEER to SEER2 Conversion: Understanding the 2025 Air Conditioner Efficiency Standard

    What is SEER? What on Earth is SEER2, how is it different than the regular old SEER rating, and what does it mean for ...
    Read More
    Cracked Heat Exchanger
    Furnaces

    Cracked Heat Exchangers

    Scam alert! Each heating season, numerous Dayton heating contractors are tempted to lie about cracked heat exchangers in an attempt to sell more furnaces. ...
    Read More
    Emergency Heat on Thermostat
    Furnaces

    When to Use Emergency Heat

    Warning: this post will save you money! Maybe you're wondering what that EM heat or emergency heat setting on your thermostat means. Or maybe ...
    Read More
    High Humidity Measured
    Indoor Air Quality

    What Is Considered High Humidity and Low Humidity In Your Home

    If you're here, you're probably checking to see if your house is too humid or not humid enough. We're here to help you figure ...
    Read More
    Trane XV20i Humidity Thermostat Setting
    Indoor Air Quality

    Ideal Indoor Humidity Levels and the Benefits of Optimum Humidity

    We all want a home that feels just right – a space that’s comfortable, cozy, and welcoming. Achieving the ideal indoor humidity level is ...
    Read More
    HVAC Worker Brazing Copper Coil
    HVAC Replacement

    Nitrogen Brazing vs Soldering for Refrigerant Lines

    Your home's HVAC system is a complex network of components working to keep you comfortable. At the heart of this system is something most ...
    Read More
    HVAC Brands and Parent Companies Infographic
    Furnaces

    Overview of Furnace and Air Conditioner Brands: An HVAC Company Family Tree

    Most HVAC brands are part of larger parent companies. To make sense of the HVAC industry, it’s helpful to understand how various air conditioner ...
    Read More
    Watkins HVAC Technician Cleaning Air Conditioner Coil
    Air Conditioners

    Air Conditioner Coil Cleaning: Improve Efficiency & Save Money

    Keeping your air conditioner running smoothly and efficiently doesn’t have to be complicated, but it does require staying on top of regular maintenance. One ...
    Read More
    Heat Pump Unit Covered in Ice
    Heat Pumps

    Heat Pump Defrost Cycle: Understanding the Process and Trane’s Innovative Approach

    Heat pumps are just like air conditioners except they have a "reverse gear." By changing direction of the refrigerant flow, they can not only ...
    Read More
    Air Conditioner vs Heat Pump
    Air Conditioners

    Heat Pump vs Air Conditioner: Which HVAC System is Right for You?

    The Difference Between a Heat Pump and Air Conditioner When it comes to heating and cooling your home, understanding the difference between a heat ...
    Read More
    Trane XV20i and Trane XV18 Air Conditioner
    Air Conditioners

    Difference Between Trane XV20i and XV18 Heat Pump and Air Conditioner

    When looking for the best A/C or heat pump for your forever home, the Trane XV20i and XV18 models stand out as the top ...
    Read More
    Furnace Carbon Monoxide Cause Inspection
    HVAC Safety

    What Causes Carbon Monoxide in Homes

    Understanding Carbon Monoxide Carbon monoxide (CO) is a colorless, odorless, tasteless gas that can be deadly in your home. It is often referred to ...
    Read More
    Woman with CO Poisoning Symptoms Headache
    HVAC Safety

    Recognizing the Signs and Symptoms of Carbon Monoxide Poisoning

    What is Carbon Monoxide? Carbon monoxide gas (CO) is a deadly, invisible threat. Because carbon monoxide is a colorless, odorless, and tasteless gas, it ...
    Read More
    Watkins Trane 2023 SOAR Award for Dayton Cincinnati
    Industry Updates

    Watkins Heating and Cooling Wins the 2024 Trane SOAR Award

    We're thrilled to announce that Watkins has been honored with this year's prestigious Trane SOAR Award for the Dayton and Cincinnati, Ohio area. This ...
    Read More
    Air Conditioning Lightning Strike
    Air Conditioners

    Understanding Air Conditioner Lightning Strikes

    If you live in the Miami Valley, you’re more than familiar with the regular spring and summer thunderstorms! They can be pleasant to fall ...
    Read More
    Loveserves board visiting a pastor in Guatemala City
    Mission Work

    LoveServes Guatemala 2024

    Last week, my wife and I visited the beautiful country of Guatemala to visit Saq B'e, one of our LoveServes partners. Our purpose was ...
    Read More
    APCO UV Light Installation in HVAC System
    Air Conditioners

    How to Prevent A/C Evaporator Coil From Leaking Freon

    Refrigerant, commonly referred to as Freon, is essential to the functioning of your air conditioning system. Your air conditioner pumps refrigerant around, absorbs heat ...
    Read More
    Watkins HVAC Tech Check AC with Leak Detector
    Air Conditioners

    What Causes Refrigerant Leaks in Air Conditioners

    If your air conditioning system leaks refrigerant, it can lead to major problems such as lower energy efficiency, higher bills, and a shorter lifespan ...
    Read More
    Watkins HVAC technician checking AC refrigerant Freon levels
    Air Conditioners

    What Is Refrigerant Used in Home A/C Units?

    Refrigerant is the lifeblood of your home’s air conditioning system. It circulates between your A/C's indoor evaporator coil and the outdoor condenser coil, transferring ...
    Read More
    Cutaway view of Trane heat pump air conditioner showing spine fin condenser coil
    Air Conditioners

    Trane Aluminum Spine Fin Coils – Pros and Cons

    Trane All-Aluminum Spine Fin™ Coils The Trane Spine Fin™ condenser coil is a distinctive and patented technology used by Trane in their air conditioning ...
    Read More
    Watkins HVAC tech stands with new Trane XV20i heat pump after replacement job
    Air Conditioners

    Can I Replace Just My Air Conditioner Without Replacing My Furnace?

    Can I Replace the AC Unit Without Replacing the Furnace? It's one of the most common questions we get in the HVAC world and ...
    Read More
    Danfoss thermal expansion valve TXV
    HVAC Repair

    Understanding the TXV

    The HVAC TXV (Thermal Expansion Valve). How it works and why it fails. When it comes to a heating & cooling system, there are ...
    Read More
    Watkins AC Repair Man
    HVAC Maintenance

    Top 10 Most Common HVAC Issues and How to Prevent Them

    A well-functioning HVAC system is essential for maintaining a comfortable and healthy living environment in your home. However, HVAC systems are complex and can ...
    Read More
    Replace install hvac heat pump air conditioner
    Heat Pumps

    Discovering Heat Pumps: Your Guide to Energy-Efficient Home Comfort

    Switching to a heat pump in Ohio's climate Heat pumps are becoming increasingly popular as an energy-efficient and environmentally friendly heating and cooling solution ...
    Read More
    Trane Air Conditioner WeatherGuard Cover
    Air Conditioners

    Air Conditioner Covers

    Protective Covers for Air Conditioners: Do You Really Need Them? Autumn's arrival often raises concerns about outdoor air conditioning units. Falling leaves, snow, and ...
    Read More
    Rafa and John building a wall
    Mission Work

    Teaching, Building, and Changing Lives in the Dominican Republic

    We just got back from another great mission trip to the Dominican Republic. Over the past few years, we have been working with a ...
    Read More
    AC Manufacturing Warehouse
    HVAC Repair

    Factory Warranties

    For last few years, the heating industry has waged a “warranty war” with the various furnace brands offering longer and longer parts warranties. We ...
    Read More
    Watkins Heating and Cooling help St. Vincent
    Mission Work

    Introduction to Our Work in St. Vincent

    Randy and I left chilly Ohio on January 4th for a three-month missions trip to the island of St. Vincent. Our son-in-law, Daniel, attended ...
    Read More
    Air Conditioner Leaking Water on Floor
    Air Conditioners

    Air conditioner maintenance | Water leaks

    I have been a service technician with Watkins Heating & Cooling for over 10 years now. Every spring I have a routine to prepare ...
    Read More
    solar powered hvac company
    Industry Updates

    Zoning for Solar Energy

    When it comes to zoning laws, perception is nine tenths of the law (how's that for a mixed metaphor)? You may own your home, ...
    Read More
    Watkinsheating Hiring !
    Industry Updates

    We’re Hiring!

    The huge referrals from our wonderful customers have us a little overwhelmed. We need to add more seasoned service and installation techs to our ...
    Read More
    Mitsubishi Zoned Comfort ductless mini-split heat pump
    HVAC Repair

    It Is Cold Upstairs! Comfort Tips for a Two-Story Home.

    I live in a two-story house built in the sixties. Like many homes in the Miami Valley, temperatures can vary widely from upstairs to ...
    Read More
    Watkins Tech Explaining New Trane Air Conditioner XR16 Install to Customer
    HVAC Repair

    REAL Service Technicians

    I believe I can speak for most service technicians when I say we all love to talk shop. If you were to listen in ...
    Read More
    Dominican Missions
    Mission Work

    Watkins’ Mission to Transform Lives in the Dominican Republic

    For years our family has been personally involved in overseas missions work. Our business is seasonal which makes it easy to get away in ...
    Read More
    Technician working on a high efficiency furnace
    Furnaces

    Top 5 Reasons for a Furnace Tune-up

    Homeowners frequently ask, “Why does my furnace need a tune-up every year?” As our techs will tell you, a neglected furnace will eventually leave ...
    Read More
    Best HVAC Repair Google Search in Tab
    HVAC Repair

    How Do You choose an HVAC Contractor?

    Baby it's warm inside! It is 6:30 PM, and you have just returned home from a grueling day at work. You are ready to ...
    Read More
    heat pump thermal balance point
    Heat Pumps

    Heat pump operation 102

    In my last post, Heat Pump Operation 101, I explained how the efficiency and capacity of a heat pump vary with the weather. How ...
    Read More
    Honeywell Carbon Monoxide Alarm
    HVAC Safety

    Carbon Monoxide Safety

    With the time-change, local news stations always recommend changing the batteries in your smoke detector. Furnace guys would extend that reminder to carbon monoxide ...
    Read More
    furnace_filters
    Furnaces

    6 Furnace Air Filter Tips

    A question asked quite often by my customers is, “How often should I change my furnace filter?” Another popular question is, “Why do you ...
    Read More
    gas pilot light before and after cleaning
    Furnaces

    Routine furnace maintenance saves money

    I’m sitting here in my two-seat, diesel powered office thinking about the season. There are reminders everywhere; trees without leaves, frost covered grass, Christmas ...
    Read More
    Trane ECM motor module
    Heat Pumps

    Committed to Your Comfort: Trane Heat Pump Repairs Done Right

    This morning, we encountered a malfunctioning ECM fan control module on an older Trane heat pump. These modules are crucial for your unit’s performance, ...
    Read More
    Hope House Rescue Mission Dayton Logo
    Mission Work

    Watkins Brings Comfort through Hope House Rescue Mission

    Reprint of press release from PRWeb. Watkins Heating and Cooling today announced a two-year commitment to provide free furnace and air conditioner maintenance to ...
    Read More