Heat pumps provide both space and water heating, as well as cooling in one system. They do not generate heat or convert electricity into thermal energy like conventional resistance heaters. Instead, they extract natural heat from one place and transfer it to another.
Heat pumps use electricity to apply a little more energy to raise the temperature to the level required. Whilst a heat pump will use an external energy source like electricity for the transfer process, the heat transfer can be three or four times larger than the electrical power consumed. This means that they have better energy efficiency than conventional electrical resistance heaters.
For example, if a heat pump produces 2.5 kilowatts of thermal energy, they actually use less than 1 kilowatt of electricity. Heat pumps can use up to 60% less electricity than traditional water heaters.
They can be quite large, so you’ll need more space for heat pumps. Because this water heater style relies on pulling heat from the ground or air around it, it will not work very well in cold spaces like basements or in climates where it is excessively cold for long periods throughout the year.
They can also be expensive to install, but it’s a great investment knowing you’ll spend far less on your heating bills.