Abstract: A heating and cooling system for a building having a number of separately-controlled zone heat pumps includes a circulation conduit for heating or cooling a heat transfer fluid circulated throughout the system, and individual heat pumps for each of the controllable zones. Prior to dissipation of excess system heat by use of the cooling means, an additional heat pump in heat transfer contact with the circulation loop extracts heat for storage in a separate reservoir, at a temperature higher than that of the circulating fluid. The stored heat may be returned to the circulation conduit, or otherwise recovered as necessary for heating potable water or the like.