A method and system for recovering thermal energy from an ambient environment includes an evaporator plate assembly located in the ambient environment, such as outdoors to absorb thermal energy from air. A compressor, heat exchanger, and water storage tank are located indoors. Fluid lines provide a closed circuit between the evaporator plate assembly, the compressor, and the heat exchanger. Water lines provide a flow path between the exchanger and the hot water tank. Refrigerant fluid in the evaporator plate assembly absorbs thermal energy from the ambient environment, and the fluid is then compressed by the compressor to increase the temperature thereof. The heated fluid transfers thermal energy to water in the heat exchanger, which is then stored in the tank for use. The hot water can be circulated to furnace coils wherein air is blown over the coils to absorb heat therefrom, and used to heat one or more rooms.