An air source heat pump uses outside air as a heat source or heat sink. A compressor, condenser and refrigerant system is used to absorb heat at one place and release it at another.
Outside air, being above absolute zero, is a heat container. An air-source heat pump moves, or 'pumps' some of this heat to provide hot water or household heating. This can be done in either direction, to cool or heat.
Heating and cooling is accomplished by moving a refrigerant through the heat pump's various indoor and outdoor coils and components. A compressor, condenser, expansion valve and evaporator are used to change states of the refrigerant from a liquid to hot gas and from a gas to a cold liquid. The refrigerant is used to heat or cool coils in a building or room and fans pull the room air over the coils. An external outdoor heat exchanger is used to heat or cool the refrigerant. This use of outside air has lead to the term "Air Source" Heat Pump. The overall operation uses the concepts described in classic vapor compression refrigeration.
The 'efficiency' of air source heat pumps is measured by the Coefficient of performance (COP). In simple terms, a COP of 3 means the heat pump produces 3 units of heat energy for every 1 unit of electricity it consumes. In mild weather, the COP of an air source heat pump can be up to 4. However, on a very cold winter day, it takes more work to move the same amount of heat indoors than on a mild day. The heat pump's performance is limited by the Carnot cycle and will approach 1.0 as the outdoor-to-indoor temperature difference increases at around −18 °C (0 °F) outdoor temperature for air source heat pumps. However John A. (1976). Domestic Heat Pumps. PRISM Press. ISBN 0-904727-10-6.