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Ambient air at all temperatures above “absolute Zero” has inherent heat. The technology employed in heat pumps helps in harnessing this energy for productive purposes- one key application being heating of water for residential and commercial purposes. The principle on which a heat pump works is the vapour compression cycle of refrigeration. The heat pump captures the atmosphere by circulating the atmospheric air through an evaporator coil. The heat content in the air helps in vaporising and environmentally friendly refrigerant that is present in the evaporator. The refrigerant vapour is passed through a compressor where the refrigerant temperature is significantly raised. The hot gas is then moved around a heat exchanger through which the water is also circulated. The refrigerant undergoes a phase change and becomes a liquid. In this process the latent heat is transferred to the water and it gets heated to the desired temperature. The liquid refrigerant is passed through an expansion valve, where the pressure drops significantly and is send back to the evaporator. The cycle gets continued till the water reaches the desired temperature.