Concept: It is also called a peltier element and when you use it as a generator it's called seebeck effect. You have one hot side and one cold. The module generates power to drive a motor and the motor fan/air flow will cool the upper heat sink. Higher temperature difference => increased output power => increased motor RPM => increased air flow => increased temperature difference and so on. The airflow will spread the heat into your room, which is the purpose of this construction. http://en.wikipedia.org/wiki/Thermoelectric_effect If you unmounts the basement you could also use it as a stove-fan or move air from other heat sources. The motor start to turn at about 15 degrees difference, which to my surprise worked when I just went outdoors with it and the upper heat sink got cooler than the basement. You can place it in hot water, on an ice cube, a pizza and it works just as fine.