Typically, the outdoor unit houses the compressor and condenser, while the indoor unit contains the evaporator coil and an air handling unit that distributes air through the ductwork in your home.

In terms of cooling, heat pumps offer better energy efficiency than air conditioners since they use less electricity. They're more efficient at removing humidity and heat from the air than traditional AC units.

Commercial air source heat pumps use electricity to heat or cool buildings. During winter, they extract warmth from outdoor air, even in temperatures as low as -15°C, and transfer it indoors via a compressor or heat exchanger. This method of heating buildings and hot water is comparable to a conventional boiler.

VRF systems are considered either a heat pump system or a heat recovery system, which can heat and cool simultaneously. VRF systems obtain their high efficiency through the use of inverter compressors. Inverter systems allow the compressor to ramp up or down based on the needs within each space.