What is a split-system heat pump?     A split-system heat pump is also similar in set-up to a split-system air conditioner. It looks and acts just like the air conditioner, cooling the home on hot days. However, it has the ability to also heat the home on cold days using electric heat. The heat pump moves heat from outdoors into the home. This is more cost effective than other electric heating methods, such as electric furnaces or space heaters, which must create the heat. The most common set-up for a heat pump is with an indoor air handler. The air handler includes a coil and blower in one cabinet. In areas of the country where there are few heating days below freezing, a heat pump is the preferred choice. However, heat pumps are also very common in Canada, so it is not limited to the warmer climates.