Should you set your heat pump fan to auto or on for heat, you should generally set it to auto for better efficiency, lower electric bills, and better humidity control, but on can be used for more even temperatures. Fan auto means blower runs only when heat pump is actively heating or cooling, running 15 to 20 minutes per cycle, then shuts off with compressor, saving electricity because blower uses 300 to 500 watts, and preventing blowing of cool air at end of heating cycle that feels drafty, which is important for heat pumps that supply air at 90 to 100 degrees versus furnace at 120 to 140 degrees. Auto mode also allows better humidity control in summer because moisture that condenses on coil can drain away when fan off, rather than being blown back into home if fan on continuously. Fan on means blower runs continuously 24/7 even when heat pump not heating or cooling, circulating air constantly that provides more even temperatures and better air filtration if you have high MERV filter or air cleaner, reducing hot and cold spots by 2 to 3 degrees, but costs 20 to 40 dollars per month extra in electricity and can make home feel cooler in winter as fan blows lukewarm air after heat pump stops. Best practice is auto for most homes to save energy, use on if you have allergies needing constant filtration, have multi-story home with uneven temps, or have variable speed blower that runs at low speed efficiently.
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