A heat pump system includes a refrigerant circuit, at least one variable speed compressor operating with a maximum pressure ratio of at least 5.0 and a variable speed range of at least three times (3×), a heat absorption heat exchanger, a heat rejection heat exchanger, an ejector disposed on the refrigerant circuit upstream of the compressor to extend a pressure ratio range and a volumetric flow range of the compressor in the cold climates, a separator disposed downstream of the ejector and upstream of the heat absorption heat exchanger, and at least one variable speed fan configured to move air through the heat rejection heat exchanger to provide a predefined an air discharge temperature greater than 90° F. A two-phase refrigerant is provided to an inlet of the heat absorption heat exchanger with a quality of less than or equal to 0.05.