A heat pump works by transferring heat from one place to another using refrigerant, making it highly efficient for both heating and cooling. In colder months, it pulls heat from the outside air (even when it's cold) and transfers it indoors; in warmer months, it works like an air conditioner by moving heat out of your home. A furnace, on the other hand, generates heat by burning natural gas, propane, oil, or using electricity to directly heat the air, which is then distributed through your home. While furnaces are typically more effective in extremely cold climates, heat pumps are more energy-efficient and versatile for moderate climates.
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