The Coefficient of Performance (COP) for a heat pump is given by the formula:
\[
\text{COP} = \frac{\text{Heat output}}{\text{Work input}}.
\]
Given that the COP is 4 and the work input is 1 kW, we can calculate the heat output (heating effect) as:
\[
\text{Heat output} = \text{COP} \times \text{Work input} = 4 \times 1 = 4 \, \text{kW}.
\]
Thus, the correct answer is 5 kW.
Final Answer: \text{(C) 5 kW}