Heat pumps operate based on the refrigeration cycle, which involves the evaporation and condensation of refrigerant to move heat. They are capable of transferring heat from a cooler area to a warmer one, working opposite to how traditional heating systems work.

In Heating Mode: Heat pumps extract heat from a cold space (like the outside air, the ground, or water) and transfer it inside. Even when the outside temperature is cold, there is still heat energy in the air or ground that can be captured and moved inside.

In Cooling Mode: In the summer, the process can be reversed, where the heat pump extracts heat from inside the building and releases it outside, functioning just like an air conditioner.

This process uses a compressor, a condenser, an expansion valve, and an evaporator to move and transfer heat.