How does the air conditioner cool my house?

Outdoor unit 

indoor unit 

1.

outdoor   unit 

The compressor condenses and circulates the refrigerant through the condenser (outdoor unit), changing it from a gas to a liquid. The liquid is then forced through the indoor evaporator coil or cooling compartment.

indoor   unit 

2.

The indoor unit's fan circulates the inside air to pass across the evaporator fins. The evaporator's metal fins exchange the thermal energy with the air around it. There, the refrigerant turns from liquid into vapor, removing any heat from the surrounding air. As the heat is removed from the air, the air is cooled and blown back into the house. 

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3.

outdoor   unit 

From that point, the condenser (outdoor unit) then turns the refrigerant vapor back into a liquid, removing any heat. By the time the fluid leaves the evaporator again, it is a cool, low-pressure gas, eventually returning to the condenser to begin its trip all over again. This process continues again and again until your home reaches the cooling temperature you want, as programmed and sensed by your thermostat setting.