The efficiency of the heat pump systems can further be increased by either using: 1. Solar water heater assisted heat pump water heater. 2. Solar electricity powered heat pumps. The operating cost of the system is much lower as compared to the conventional heat pumps. Solar AC is a very effective solution for those locations where climate is hot & humid and grid based electricity is scare and unable due to frequent power cuts or is costly, solar AC is designed to address these evident problems. Solar AC runs on different alternative energy sources i.e. when it is working on solar PV it saves and reduces Grid electricity demand, it is also very power efficient system and saves the electricity expenses of the customer. Solar ac is very environment friendly and it reduces grid power consumption t0 100% because the grid power is generated by Fossil fuel, whereas solar system reduces the grid power demand and the result in less carbon emission into the atmosphere.