What Is an Air Source Heat Pump?
Learn about air source heat pumps and how they can heat and cool your home efficiently.
By Anne Fonda
An air source heat pump (ASHP) is an HVAC split system component that can both heat and cool your home, depending on the season. An ASHP is an electric heat pump that forms the foundation of the movement toward electrification and away from burning fossil fuels for heat.
How do air source heat pumps work?

An ASHP uses a refrigeration cycle to heat and cool your home in a very similar way that your refrigerator uses a refrigeration cycle to keep food cold. While your refrigerator can only operate one way and keep things cold, an ASHP can reverse its cycle and produce either cooling or heating, depending on what is needed.
What’s the difference between an air and ground source heat pump?
While an ASHP extracts heat from the air, a ground source HP, or geothermal heat pump, uses a network of fluid-filled pipes buried underground (ground loop system) to exchange heat with the soil rather than the air.
A geothermal system may require a larger space than an ASHP, depending on the system.
Air source vs ground source heat pump cost
A ground source heat pump system costs much more up front because of the digging, drilling, and ground loop system required as part of the installation. Depending on the type of ground loop system (horizontal or vertical), the cost could be upwards of $30,000. We discuss ASHP installation costs below.

Will an air source heat pump work in cold weather?
In a word, yes. Heat pump technology has come a long way in the last 10-20 years, and Trane has been leading the way. For example, paired with the right indoor unit, the 20 TruComfort™ Variable Speed Heat Pump with WeatherGuard™ is capable of delivering 100% heating capacity down to around 27° F and 70% down to about 5° F.
In addition, we have a cold climate heat pump (CCHP) releasing soon that is based on the prototype we entered into the Department of Energy’s (DOE) Cold Climate Heat Pump Challenge. Trane’s CCHP prototype performed in temperatures as low as -23°F, surpassing the mandatory -20°F DOE requirement.
There’s no simple answer to that question. Just like new cars vary in price based on the make, model, fuel efficiency, and trim level, so it goes with heat pumps. Larger capacity units will cost more than smaller units. High-efficiency heat pumps will cost more upfront than their single-stage counterparts but will result in long-term energy savings.
A base model single-stage heat pump installed might start at around $9,000, while installation of a high-end premium variable-speed heat pump might cost $20,000+. The best way to get accurate pricing is to contact your local Trane dealer.
What are the benefits of an air source heat pump vs a furnace and AC combo?
An air source heat pump paired with an air handler is an all-electric heating and cooling system with many benefits.
- Energy-efficient heat pumps can save you up to 50% on your heating and cooling bills when replacing an older AC and furnace.
- Eligible heat pumps qualify for $2,000 federal tax credits and up to $8,000 in heat pump rebates based on your state and your income.
- Heat pumps can last +/-15 years, the same as an air conditioner.
- Heat pumps offer heating and air conditioning with no direct carbon emissions.
- Residential heat pumps can reduce your carbon footprint by 38-53%* when switching from a natural gas furnace.
*According to a U.C. Davis study published in Energy Policy
Industry experts say about 85% of Americans can get their heat from a heat pump system alone, while only 15% of Americans live in climates that are too frigid for heat pumps to handle the heating 100% of the time.
Even if you choose to pair your heat pump with a furnace in a dual-fuel heating system where the heat pump heats for most of the time and the furnace kicks in during frigid temperatures, you still benefit from the higher efficiency of the heat pump and reduce your carbon emissions. You can also qualify for up to $2,600 in federal tax credits.
Learn more about air source heat pumps
At Trane, we’re constantly working for a more sustainable world, and that includes providing homeowners like you with the information you need to decide if a heat pump system is right for your home. We invite you to read our growing library of heat pump articles.
- 5 Misconceptions About Heat Pumps
- Electrification of Heat: What Every Homeowner Needs to Know
- Hybrid Heat Systems: How Do They Work?
- What Is Heat Pump Auxiliary Heat?
- Cold Climate Heat Pumps: Everything You Need to Know
- Should You Replace an Oil Furnace with a Heat Pump?
- Heat Pump Purchase Checklist
- New DOE Heat Pump Rebates
- Stack HVAC Tax Credits and Rebates and Save Big
- What’s the Best Time to Buy a Heat Pump?
- Trane’s Best Heat Pumps
Work with the HVAC experts for your heat pump installation
If you’re planning to upgrade your HVAC system soon, be sure to work with a company experienced in heat pump system sizing and installation. Not all HVAC companies have this experience, especially in northern states. All Trane dealers have the training and expertise to deliver a system that will offer energy-efficient heating and cooling for years to come.
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Mark Woodruff, Senior Product Manager, Ducted Outdoor
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