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The outdoor portion of the central ac unit is what gives up the heat from indoors, so it has to be outside. For a more thorough explanation see the question: How does air conditioning work.

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Q: Why is your central air conditioner unit outside but you central heating unit inside usuially in yer basement?
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My central air conditioner is not heating and my unit is only a year old. Can anyone tell me why?

Could it be because an air conditioner is not designed to produce heat?


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How can one learn to install a central heating thermostat?

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