 Heating and cooling your home accounts for more than 50% of the average monthly utility bill, so it's important to make smart choices when considering a new heating and cooling system. A heat pump is the most efficient heating and cooling system available today. That's because rather than generating heat, a heat pump simply transfers heat from one place to another, a much more efficient use of electricity. Here's how it works. A typical air source heat pump has an outdoor unit containing a compressor and condenser that work in conjunction with your indoor air handling unit. In the warmer months, a heat pump pulls heat from inside your home and transfers it outside, cooling your home much like an air conditioner would. In the cooler months, it reverses the process and extracts heat from the outside air and transfers that heat into your home. Even on cold days, the air contains enough heat to warm your home. However, on extremely cold days, a heat pump has an electric resistance heating element which can be used to provide auxiliary heat. In addition to the air source heat pump we've reviewed, geothermal and groundwater heat pumps use similar technology. All work under the same principle of transferring heat rather than generating heat. It requires less electricity and saves you money. Smart energy, smart choices. Brought to you by Georgia Power.