A heat pump is really two units in one – an air conditioner, and in the cooler months, a heater. If electrical costs in your area are lower than other fossil fuels, you may want to explore installing a heat pump in your home. When the heat pump is in the heating mode, it pulls heat out of the outdoor air and uses that to heat your home. If the outdoor air is too cold (around 32° F), then it uses electrical strip heaters to heat the air.