A heat pump is a high-efficiency product that is installed outside of your home and can replace a furnace and air conditioner. This product heats homes by extracting heat from the outdoor air, ground, or water source and transferring it indoors. Through a refrigeration cycle, the heat pump amplifies and releases the captured heat into the indoor space, providing warmth. Contrarily, a heat pump cools homes by removing heat from the indoor air and transferring it to the outdoor environment. It achieves this by circulating refrigerant that absorbs heat indoors, then releasing it outside through the condenser unit. What makes this product so environmentally friendly is it is powered by electricity instead of burning fossil fuels, making it one of the best candidates for anyone taking advantage of the IRA.