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A heat pump is a device that acts as an air conditioner in the summer and as an electric furnace in the winter. Heat pumps look and function exactly like an air conditioner in the summer, and is one unit used for both heating and cooling. The cost to cool a home with a heat pump is the same as with an air conditioner of the same efficiency rating. In the winter heat pumps heat the home by "reversing" themselves and "pumping" warm air into the home. The unit located outside is called the heat pump and the unit inside the home is called the air handler. 

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