Heat pumps function like air conditioners for cooling your home, but in cooler months, they reverse operation to deliver warmth to your indoor space. Instead of producing cold air and throwing away hot air, heat pumps work by transferring the heat into the water and throwing away cold air as its by-product. This process makes it more energy efficient that hot water storage heaters. If you’re living in a colder region, electric heat pumps in addition to your gas- or oil-fueled furnace can reduce your overall heating costs.
Remember: Energy Star certified heat pumps have higher Energy Efficiency Ratio (EER), Heating Seasonal Performance Factor (HSPF) and Seasonal Energy Efficiency Ratio (SEER) and they consume 5 percent less energy compared to traditional models.