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The air handler and condensing unit are the two basic components to a split heat pump heating and air conditioning system. The air handler is generally located inside the envelope of the home, either in a closet or in the attic. The air handler blows air through the evaporator coil and then transfers it throughout the home or building using the duct work to ensure every room is getting the end result – heated or cooled air. The condensing unit is located outside the home. It’s major components consist of a compressor and condenser coil. Condensing units move energy in the form of heat by compressing refrigerant, also known as freon, then pumping it through a system of condenser coils.