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A heat pump is a heating, ventilation, and air conditioning (HVAC) system that transfers heat from one place to another, from inside to outside or from outside to inside. In the winter a heat pump works like a heater, extracting heat energy from outside and transferring it inside—instead of generating its own heat like a furnace. In the summer the process reverses, and it removes heat from your home and transfers it outside like an air conditioner.