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HVAC Basics

How Does a Heat Pump Work?

Reviewed by AC Direct Technical Team Updated June 2, 20265 min read
The short answerA heat pump circulates refrigerant between two coils. The refrigerant absorbs heat in one coil and releases it in the other, driven by a compressor. A reversing valve flips the direction of flow, so the same system can heat in winter and cool in summer.
The heat pump refrigerant cycle, both directionsAC Direct HVAC guide
Refrigerant carries heat from one coil to the other, then reverses.

The refrigerant cycle

A heat pump moves heat with refrigerant, a fluid that absorbs and releases heat as it changes between liquid and gas. The compressor pumps it around a loop between two coils, one outdoors and one indoors. As the refrigerant evaporates it soaks up heat; as it condenses it gives heat off. Move that loop in one direction and you carry heat inside; reverse it and you carry heat outside.

Heating mode

In winter, the outdoor coil acts as the absorber. Even in cold air there is heat to capture, so the refrigerant pulls heat from outside, the compressor raises its temperature, and the indoor coil releases that heat into your home.

Cooling mode

In summer, the reversing valve flips the flow. Now the indoor coil absorbs heat from your home and the outdoor coil dumps it outside, exactly like a regular air conditioner.

The main parts

PartJob
CompressorPumps refrigerant and raises its temperature
Two coilsOne absorbs heat, one releases it
Reversing valveSwitches between heating and cooling
RefrigerantCarries the heat around the loop

Because the system moves heat rather than burning fuel, it can deliver more heat energy than the electricity it uses, which is what makes heat pumps efficient.

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Common questions about how heat pumps work

What makes a heat pump reverse?
A reversing valve changes the direction the refrigerant flows, which swaps which coil absorbs heat and which releases it, switching between heating and cooling.
How does a heat pump heat in cold weather?
It captures heat that exists in cold outdoor air and concentrates it with the compressor. Cold-climate models do this well below freezing.
Why is a heat pump efficient?
Because it moves existing heat instead of burning fuel, it can deliver more heat energy than the electricity it consumes.
Does a heat pump use refrigerant?
Yes. Refrigerant is the fluid that absorbs and releases heat as it cycles between the two coils.
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Reviewed by the AC Direct Technical Team

25 years sizing and shipping HVAC systems to homeowners and contractors.

Last updated June 2, 2026  •  Facts verified against current EPA and AHRI standards