Air source heat pumps are generally known, but their fans produce acoustic noise. The fence heat exchanger does not need fans due to large surface area. When a liquid refrigerant at a low temperature and low pressure passes through the tube fence heat exchanger, ambient heat causes the liquid to boil and the liquid is changing to gas. The gas passes up in the fence tubes and is preheated. The absorbed heat is stored in the gaseous refrigerant and a compressor increases the temperature of the gas. Inside the house, the hot gas passes through heat exchanger. There, the hot refrigerant gas transfers the stored heat to the indoor water heating and hot water system. Then the gas passes through a pressure valve and condenses back to a liquid. The liquid passes back to the fence heat exchanger.