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A heat pump is a reverse cycle air conditioner, which means the system both heats and cools.
Heat pumps work in much the same way as a refrigerator. Two coils (one inside and one outside) circulate a refrigerant that draws warmth from the outside air and transfers it into your home.
Nothing in the system is actually “heated” – there are no glowing elements and the process is very efficient. The heat-transfer fluid used boils at -40 degrees Celsius, so even on the coldest winter’s day heat is absorbed and transferred indoors.