Skip to main content

News & advice

How Does an Air Source Heat Pump Work?

How do air source heat pumps work? Get a clear explanation of the process, benefits, and energy savings from EPC Improvements.

Three green foliage wreaths arranged like gears to represent heat-pump efficiency

An air-source heat pump uses electricity to transfer heat from outside air into the home. It does not burn fuel at the property, but running cost and carbon performance depend on the system, tariff and electricity used.

In this article, we'll provide you with a step-by-step guide answering the question: how do air source heat pumps work? We'll also explain a variety of factors to consider before you go ahead with the installation, to help you get the best out of your heat pump.

What is an Air Source Heat Pump?

The popularity of air source heat pumps in homes and commercial properties across Essex is no accident. These mechanisms are changing the way people heat their homes, all while reducing fossil fuel usage and helping the planet.

Instead of burning oil or gas, an air-source heat pump transfers heat from outside air into a water-based heating system. A well-designed system can deliver several units of heat for each unit of electricity used, but performance varies with outdoor and flow temperatures.

How Do Air Source Heat Pumps Work?

While the concept of the air source heat pump may be simple, the technology behind it is a little more complex. Let’s go through it step by step.

1. Absorbing Heat

The most notable aspect of air source heat pumps is the large fan on the front of the unit. This fan is responsible for drawing in the outside air. Even in the coldest temperatures, the air contains thermal energy (heat).

Outside air passes across a heat exchanger containing refrigerant. The product’s specified operating range, output and efficiency at the project design temperature should be checked in the manufacturer data rather than inferred from one generic temperature.

2. Heat Extraction

The incoming air is a lot warmer than the temperature of the refrigerant, which begins to absorb its heat. It then starts to change from a liquid to a low-pressure gas, before entering the next stage of the process: compression.

3. Compression

The evaporated refrigerant is drawn into the compressor, which significantly warms its temperature. It does so by squeezing the gas molecules together, pressurising them and increasing the gas’ internal energy.

The refrigerant has now transformed from a low-pressure gas into a high-pressure gas.

4. Heat Transfer

The now-heated gas passes through a condenser. Its heat will then be transferred into the water for the central heating system which runs the other side of the condenser. Once the heat has been transferred, the refrigerant gas will pass through an expansion valve.

This expansion valve will suddenly release the pressure, quickly cooling the refrigerant. This will condense it back into a liquid, before the process restarts again.

As previously mentioned, the heat pump doesn’t use fossil fuels to instigate this process. Instead, the heat pump runs on electricity; but how much does it use?

How Much Electricity Does a Heat Pump Use?

Electricity consumption cannot be predicted from the heat pump’s nominal output alone. It depends on the building’s annual heat demand, hot-water use, seasonal performance, flow temperature, controls, weather and any supplementary heating.

A heat pump can deliver more heat energy than the electrical energy it consumes because it transfers heat from the environment. This does not mean free heating: Energy Saving Trust advises that current running costs vary and can be slightly higher than a new gas or oil boiler in some homes.

Plus, if you invest in other forms of renewable energy in your home, such as solar panels and solar battery storage, you can save even more.

Heat Pumps: Points to Consider

Before you go ahead with an air source heat pump installation, there are a few points you should consider.

Adequate Insulation

Heat pumps work best in well-insulated homes. While they can still operate if your home lacks high-quality insulation, you’ll run the risk of losing a lot of the heat that the pump produces. To counteract the heat loss, your pump will have to work harder, using up more electricity for a similar/worse result.

Correctly-Sized Radiators

Heat pumps operate at lower water temperatures than gas boilers. This means that you are likely to need larger radiators with greater surface areas to effectively heat the room. Unfortunately, this will add extra money onto the installation costs.

Government Grants

Eligible property owners may be able to use the Boiler Upgrade Scheme. The installer applies on the owner’s behalf and the grant is deducted from the quotation and invoice, subject to the current Ofgem rules.

Bear in mind that the scheme is only set to run until March 31st 2028.

Shape, Size, and Noise Production

Heat pumps are not small and will require your home to have adequate outdoor space for installation. You will also need to make space indoors to store the water cylinder, which takes up a fair bit of space. Heat pumps aren’t silent either, which is another factor to consider when thinking about placement.

Information needed for a useful performance estimate

  • Room-by-room heat loss and annual heat demand

  • Design outdoor temperature and proposed flow temperature

  • Heat-pump capacity at the stated design conditions

  • Radiator or underfloor-heating outputs

  • Hot-water cylinder and household demand

  • Expected seasonal performance and electricity tariff

Plan your heat-pump project

Get advice based on your home.

Share a few details about your property and current heating system. Our team can help you understand the right assessment and installation route.

Get a heat pump quote

Continue reading

Related articles

air source heat pumps with nature illustrations

7 min read

Air Source Heat Pump Installation: A Complete Guide

Learn how air source heat pump installation works, including system design, costs, benefits and advice from MCS-certified installers.

Read article
heat pump and boiler

6 min read

Air Source Heat Pump vs. Gas Boiler

Compare air source heat pumps vs. traditional heating systems. Learn about efficiency, costs, benefits, and drawbacks to decide which heating solution is best.

Read article
Hand holding a question-mark card against a blurred green background

5 min read

Myth-buster: Air Source Heat Pumps

Separate fact from fiction with clear answers to common air source heat pump myths, including efficiency, noise and winter performance.

Read article
EPC logo featuring a curved arrow and a house roof and chimney with the EPC letters in white on a blank background
MCS CertifiedTrustMarkFederation of Small BusinessesFinancial Conduct AuthorityRenewable Energy Consumer Code
© 2026 EPC Improvements Ltd. All rights reserved. LLM information
FacebookInstagramLinkedIn

EPC Improvements Ltd is a credit broker not a lender. We are authorised and regulated by the Financial Conduct Authority (firm reference number: 781156). We do not provide financial advice but offer credit products from Zopa Bank Limited, a lender authorised and regulated by the Financial Conduct Authority under firm reference number 800542. We do not charge customers a fee or earn a commission for our credit broking services. Credit is subject to age, status, and affordability. Borrowing more than you can afford or paying late may affect your financial status and ability to obtain credit. You are not obligated to use the lender we suggest. You are free at any time to explore and secure financing independently, and it is possible that you may find a better offer elsewhere.

Current preference: Not selected

Read our privacy policy