How Heat Pumps Work and How Much You Save on Heating
A heat pump works by running a closed refrigerant cycle that pulls heat from the outside air and moves it into your home, using electricity only to run the compressor. That’s why it reaches efficiencies above 300% and can cut heating costs sharply — especially versus electric resistance or oil heat.
More in the complete heat pump guide.
The cycle in 4 stages
- Evaporation: the refrigerant absorbs heat from the outside air and evaporates.
- Compression: an inverter compressor raises its pressure and temperature.
- Condensation: it releases that heat to your home’s air or water.
- Expansion: a valve drops the pressure and the cycle restarts.
That’s how it delivers 3 to 4 units of heat per unit of electricity — impossible for electric baseboard heat, which gives 1 for 1.
How much you save
Savings depend on your local electricity, gas and oil prices, but a heat pump typically cuts heating energy use by 40–60% versus combustion, and even more versus electric resistance. It also replaces your air conditioner, so you save on cooling too.
| System | Efficiency | Also cools? |
|---|---|---|
| Heat pump | 300–400%+ | Yes |
| Gas furnace | 90–98% AFUE | No |
| Electric baseboard | 100% (COP 1) | No |
See the full heat pump vs gas furnace comparison.
Frequently asked questions
Why does it use less than electric baseboard heat?
Baseboard heat turns 1 kWh of electricity into 1 kWh of heat. A heat pump moves heat from the air, so 1 kWh of electricity delivers 3–4 kWh of heat.
What is the heating curve / weather compensation?
A control that adjusts the water/air temperature based on the outdoor temperature, raising efficiency in milder weather.
Does the defrost cycle use much energy?
It slightly increases consumption on cold, humid days, but it’s brief and keeps the unit efficient.
Does it save in summer too?
Yes — it cools more efficiently and evenly than a standard air conditioner.