Heat pumps are highly energy-efficient compared to traditional heating systems like furnaces or boilers. Instead of generating heat, heat pumps transfer heat from the air or ground, using much less energy. This results in lower energy consumption, especially in moderate climates. On average, heat pumps can be up to 300% more efficient than electric or gas heating systems, as they produce more energy than they consume. This efficiency leads to significant savings on energy bills and a reduced environmental impact.