What Is a Heat Pump? A Beginner’s Guide for Building Owners
By Ian Motley, President | August 17, 2026
For many buildings in the NYC metro area, heat pumps are becoming a practical way to improve heating and cooling efficiency while reducing emissions.
A heat pump is a heating and cooling system that moves heat instead of creating it by burning fuel. For commercial buildings, heat pumps can support space heating, cooling, domestic hot water, heat recovery, low-pressure steam, and high-temperature hot water.
Heat pumps are an important part of building electrification because they can help reduce emissions, improve efficiency, and support long-term carbon compliance.
How Do Heat Pumps Work?
A heat pump moves heat from one place to another. In heating mode, it captures heat from outdoor air, water, wastewater, recovered heat, or other sources and transfers that into the building.
A heat pump in cooling mode removes heat from the building and, in some systems, reuses the heat elsewhere instead of wasting it. Heat pumps don’t need to create their heat from scratch. Rather, they can recover and reuse energy that may already be available in or around the building.
Heating and Cooling Capabilities
As mentioned, heat pumps can provide both heating and cooling. This is useful in commercial buildings, as various sections of a location require different demands at the same time.
For instance, tenant spaces, mechanical rooms, and domestic hot water systems can all create different loads throughout the day. A properly designed heat pump system can help move heat where it is needed and reduce waste, while improving building performance.
Air-Source vs. Water-Source Heat Pumps
Air-source heat pumps use outdoor air as the heat source and can be used for both heating and cooling.
These heat pumps may integrate well with outdoor equipment, packaged units, or distributed systems. They’re typically used when a building needs an electric heating and cooling option without relying on onsite fossil fuel combustion.
Water-source heat pumps use water as the heat source or transfer medium. This can include condenser water loops, ground source systems, wastewater, recovered heat, or other water-based sources.
For many New York buildings, water-source heat pumps are a strong option to consider because they can support higher-temperature needs, heat recovery, domestic hot water, and simultaneous heating and cooling.
High-temperature heat pump solutions can deliver hot water up to 248°F, which is important for hydronic buildings that require higher temperatures. Water-source heat pump technology also supports clean low-pressure steam for steam-heated buildings looking to reduce emissions and maintain existing infrastructure.
Energy Efficiency Benefits
Heat pumps generally help reduce energy waste. Instead of burning fuel every time a building needs heat, heat pumps move existing heat and put it to use.
Advanced heat pump applications can provide annual energy savings of up to 80%, with similar potential reductions in CO2 emissions depending on the building and system design. Every building has different heating loads, space limits, and compliance goals, so the right design matters.
Common Commercial Applications
Heat pumps also support several key building needs, including:
- Low-pressure steam
- High-temperature hydronic heating
- Domestic hot water
- Heat recovery
- Simultaneous heating and cooling
These applications are a strong fit for many larger, commercial buildings working toward enhancing their built environment.
Why Heat Pumps Matter for Building Electrification
Building electrification means moving away from onsite fossil fuel combustion and using electric systems instead. Heat pumps are a key part of that transition.
In New York City, Local Law 97 places emissions caps on most buildings over 25,000 square feet. Local Law 154 also limits fossil fuel use in new construction. These rules are pushing building owners and facility managers to look at cleaner and more efficient heating and cooling options.
Interested in learning if a heat pump is right for your building?
Contact Hudson Clean Heat Today
Discuss your building’s heating and cooling needs.
