At HOUSH - The Home Energy Experts we have been installing "dual fuel" or "hybrid heat" systems for many years. Dual fuel is different than a "standard" heating and cooling system. Standard systems either use a gas furnace with an air conditioner or they are all-electric with a heat pump system. With dual fuel, the system configuration takes advantage of both power sources by using an electric heat pump in conjunction with a high-efficiency gas furnace.

One advantage of dual fuel is that the homeowner can use the electric heat pump for heating most of the year, but when things get extremely cold the gas furnace kicks in to keep the home comfortable. Using the heat pump is usually more energy-efficient. Another advantage of dual fuel is that the homeowner has control over which fuel source to use depending on the cost of electricity or gas in any given year.

Dual fuel systems are highly efficient and highly flexible. They generally cost about 20% more up-front than a "standard" system but this extra cost is easily paid back within the first 2-3 years.