What is the difference between a heat pump and furnace?

While both types of appliances provide your home with reliable, efficient heating, a heat pump pulls double duty, also helping to cool your home in the summer. A traditional furnace generates heat by burning oil or gas and then distributes it to your home through your duct system. Rather than generating it, a heat pump uses a combination of electricity and refrigerant to extract heat from the air outside (even when it’s cold), before transferring it to your indoor living space.