Understanding Domestic Heat Pumps A domestic heat pump is a highly efficient system designed to heat and cool residential buildings by transferring heat between the indoors and outdoors. It operates on principles similar to those found in refrigerators but in reverse, making it a versatile and energy-efficient solution for climate control in homes. How Domestic Heat Pumps Work At the core of a domestic heat pump is the principle of heat transfer, which involves moving heat from one location to another rather than generating heat directly. This is achieved using a refrigeration cycle that includes four main components: the evaporator, the compressor, the condenser, and the expansion valve.