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A heat pump can reduce the heating costs by 60% in the winter and can also provide low cost air conditioning in the summer (for $1 per day). A heat pump operates on principle of a fridge. A fridge extracts heat from the near-freezing inside air and releases it to the warmer air in the kitchen. A heat pump only moves heat from the outdoors into your home rather than creating heat by burning fuels. For this reason it can be over 200% to 300% efficient and so can reduce your heating bill more than in half.
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