A heating and the cooling split system is an HVAC system that includes both indoor and outdoor units linked by copper tubing. There are many heating and cooling split systems, including a heat pump or air conditioner installed outside your home, paired with a gas furnace or a fan coil installed inside your home. Heat pumps are powered by electricity, draw heat from the outside air (even cold air), and transfer it indoors. The outdoor unit is made with a compressor and a heat exchanger, while the indoor unit contains an air handler and a fan that circulates air throughout the house.