Ground source and air source heat pumps make use of the low temperature heat from the ground or air. They alter it to a higher, more useful temperature through a heat pump and condenser, which can be used to heat your hot water and heating system. This heat from a natural resource represents a very carbon efficient form of space heating.
Due to the low temperatures generated through these systems, they are generally most suitable for use with underfloor heating, where lower flow temperatures are required to heat a building. The process can roughly be looked upon as a refrigerator working in reverse.
These systems can be considered to cover the base heat load of a building, dependent upon the heat loss of that building. An auxiliary system would then cover the peak demand - for example a biomass boiler, wood burner, or gas or oil condensing boiler.