Did you know you can extract heat from chilly outside air and use it to heat your house? This feat is performed by the magic of the heat pump—an appliance that uses refrigeration technology rather than fuel combustion to provide warmth and cooling.

Heat pumps are not new—they’ve been in use for more than 30 years—but upward-spiraling energy costs and technological breakthroughs have catapulted heat pumps into position as a popular, sensible alternative to conventional heating and cooling systems. And those with the Energy Star designation offer a $300 tax credit.

Early heat pumps were something of a disappointment—they were noisy and prone to breakdown, and they failed to provide ample warmth on really cold days. Advances have ushered in a new generation of energy-efficient, reliable systems that are winning over homeowners and builders alike.

Why we like it: • Ships to your door for $197 • Saves energy year-round with an SEER of 13

Heat pumps are most effective at saving energy when in the heating mode. The problem with an air-source heat pump in a cold climate, however, is that your house needs more heat as the temperature outside goes down—but the heat pump works less efficiently at lower outdoor temperatures. Below a temperature known as the “balance point,” normally from 30 to 45 degrees Fahrenheit, supplementary heat is required—and that means expensive electrical heating kicks in.

Do you really need a new heat pump?
A new heat pump can save you money in the long run. But does your furnace or heat pump need replacement' Do you want a new heat pump because your present one isn’t heating or cooling properly or is making too much noise' You may find that simple repairs are all that’s needed.

If you’re considering a new heating appliance to eliminate problems with an older one, first read through these common heat pump problems and their fixes—this information just might save you a bundle.