What is a heat pump and how do they work?

We’ve already done a little digging into geothermal heat pumps — so, in this article, we’re shedding some light on the region’s most popular heating and cooling system: the heat pump.

If you’re looking for an energy-efficient way to heat and cool your home, you may have come across the term “heat pump.” But what is a heat pump, and how do they work? 

What is a heat pump?

A heat pump is a versatile heating and cooling system that transfers heat from one place to another. Unlike a conventional furnace, which generates heat by burning gas or oil, a heat pump extracts heat from the air, ground, or water. 

Heat pumps move heat inside during the winter and outside during the summer. Because heat pumps move heat rather than generate it, they can operate with significantly higher efficiency than conventional heating and cooling systems.

It also means that heat pumps are “twofers” — they do double duty as your heating system in the winter and your central air conditioning system in the summer.

How do heat pumps work?

Heat pumps function using a refrigeration cycle similar to that of an air conditioner. The main components of a heat pump include:

  • Evaporator coil – Absorbs heat from the surrounding air, ground, or water.
  • Compressor – Increases the temperature of the absorbed heat by compressing the refrigerant gas.
  • Condenser coil – Releases the heat into your home in heating mode or expels heat outside in cooling mode.
  • Expansion valve – Regulates refrigerant flow to maintain the correct temperature and pressure levels.

In the winter, the heat pump extracts heat from the outdoor air (even in cold temperatures) and moves it indoors. In the summer, the process reverses, and the heat pump removes heat from inside your home and releases it outdoors, keeping your home cool.

Do you have a heat pump?

You may be surprised to find out that you already have one! Our seven-state Valley region holds seven of the top 10 positions for states with the highest percentage of heat pumps.

Graphic illustrating the top 10 states for heat pumps.

What are the different types of heat pumps?

There are several different types of heat pumps — and we offer rebates on many of them! Federal tax credits may also be available.

  • Air-source heat pumps – The most common type of heat pump, air source or dual fuel heat pumps extract heat from the outdoor air. Get a rebate of up to $800.
  • Ground-source (geothermal) heat pumps – Use underground heat for increased efficiency but require extensive installation. Get a rebate of up to $3,000.
  • Water-source (geothermal) heat pumps – Transfer heat to and from a water source, such as a lake or well. Get a rebate of up to $3,000.
  • Ductless mini-split heat pumps – Ideal for homes without ductwork, providing zoned heating and cooling. Get a rebate of up to $800.

Explore all rebates!

Energy efficiency and SEER2 ratings.

One of the biggest advantages of heat pumps is their high energy efficiency. The efficiency of air conditioners and heat pumps is measured using the Seasonal Energy Efficiency Ratio (SEER) for cooling and Heating Seasonal Performance Factor (HSPF) for heating. In January 2023, the U.S. Department of Energy updated its rating standards to SEER2 and HSPF2, which provides a more accurate measure of a unit’s real-world performance (Air Conditioning, Heating and Refrigeration Institute). 

Understanding SEER2 ratings

  • Higher SEER2 ratings indicate better cooling efficiency and use less electricity to cool your home.
  • Higher HSPF2 ratings mean the heat pump is more efficient at heating, helping you save on winter heating costs.
  • The minimum SEER2 rating for heat pumps in our southeastern region is 15.

When purchasing a new heat pump, looking for a model with a high SEER2 rating ensures lower energy consumption and reduced utility bills over time.

SEER2 FAQs

How heat pumps help you save money

A major advantage of installing a heat pump — whether it’s geothermal, dual fuel, or a ductless mini-split, is energy savings, which translates into lower utility bills (Energy.gov).

  • Efficiency: Heat pumps use electricity to move heat rather than generate it, making them significantly more efficient than traditional heating systems.
  • Lower operating costs: Because heat pumps work year-round for both heating and cooling, you can replace separate heating and cooling systems with a single unit, reducing maintenance costs.
  • Rebates and incentives: Many federal, state and local programs offer rebates and tax credits for heat pump installations. Be sure to check out all of our rebates to make sure you’re maximizing your savings.

Environmental benefits of heat pumps

Beyond cost savings, heat pumps contribute to a more sustainable future by reducing carbon emissions. Since they use electricity instead of fossil fuels like natural gas or oil, they lower household greenhouse gas emissions. Pairing a heat pump with renewable energy sources such as solar power can further enhance sustainability.

Is a heat pump right for your home?

Our region is ideally suited for heat pumps and more and more homeowners are choosing these money-saving systems over conventional furnaces. If you’re thinking about upgrading your heating and air conditioning systems, reach out to a TVA-vetted member of the Quality Contractor Network to learn more. 

With high efficiency ratings, SEER2-rated models, rebates from TVA EnergyRight and government incentives, now is a great time to consider upgrading to a heat pump. By making the switch, you can enjoy year-round comfort, lower energy costs, and a more sustainable home!

Author

The Residential Team

Bio

Save energy and money at home. The TVA EnergyRight Residential Team is here to help you improve your home’s energy efficiency so you can lower your bill and live more comfortably.