Hybrid HVAC Systems: What You Need to Know

When it comes to heating and cooling your home, you have a lot of choices. Learn about hybrid HVAC systems, and why they’re growing in popularity.

September 20, 2024

By Anne Fonda

Air conditioners, furnaces, and heat pumps, oh my! While traditional HVAC systems combine an outdoor AC unit with an indoor furnace or an outdoor heat pump with an indoor air handler, there’s a new kid on the block - the hybrid HVAC system, or dual-fuel system.

What is a hybrid system in HVAC and how does it work?

A hybrid HVAC system (dual-fuel system) combines an electric heat pump with a gas furnace. This system is called a dual-fuel heat pump system. The dual-fuel refers to electricity for the heat pump and gas, propane, or oil for the furnace. This hybrid system is also available as a packaged system.

During the spring, summer, and early fall, the air source heat pump sees most of the action - heating and cooling your home. The furnace acts as an air handler, distributing heated or cooled air throughout your home.

Dual-fuel heating for your home

During milder winter days, the heat pump might run in the daytime to heat your home, with the furnace kicking in as temperatures drop overnight. Or in extreme cold situations, the heat pump takes a much-deserved rest, and the furnace takes over the heating duties completely.

By combining these technologies, hybrid heating systems maximize efficiency and reduce energy costs.

What are the advantages of a hybrid HVAC system?

You get the best of both worlds - efficient heat pump heating and cooling for most of the year, and fast heating in the winter from the furnace.

Energy efficiency

Air source heat pumps can be more than 100% efficient. This means they can produce 300% more times heat energy than they consume in electricity. In general, heat pumps are more efficient than central AC units, and more efficient at heating than furnaces (in the right temperature range).

Cost savings

According to the Department of Energy (DOE) by switching out an AC unit for a heat pump, you could save more than $500 a year. And by pairing that heat pump with a gas furnace for a hybrid system, you can save even more - from 30-50% of your total heating and cooling costs!

Reduced carbon footprint

Because heat pumps don’t burn fossil fuels like natural gas, propane, or oil to heat your home, you reduce your carbon footprint. This is why there are so many financial incentives such as heat pump tax credits and heat pump rebates to encourage American homeowners to convert to heat pumps for heating and cooling. 

Use the ENERGY STAR® Rebate Finder to see all of the incentives in your area.

May add value to your home

If you eventually plan to sell your home, a dual-fuel system may add value. Many prospective homeowners are looking for energy-efficient homes, and a hybrid HVAC system may appeal to them. 

Is a hybrid HVAC system worth it?

A hybrid heating and cooling system can be worth the higher initial cost if you live in a climate that sees four seasons and varying temperatures. If you live in the southern portion of the United States, a heat pump system would likely be more energy-efficient for your home.

If you have an existing furnace and AC unit, installing a hybrid system can be completed without the need for major renovations. This can make it a great choice when you’re replacing an aging HVAC system.

To achieve the highest level of efficiency, you may want to make sure windows and doors are sealed appropriately to reduce heat loss. You may also need to seal your existing ductwork or replace/add to the ductwork. An HVAC professional can help you decide what you need to do.

If you want to save energy, save money on heating bills, and reduce your carbon footprint, a hybrid HVAC system is well worth the investment. While a heat pump may cost more upfront, the increased reduction in energy costs may help pay for the additional cost in just a few years.

Your cost savings will be affected by your desired heating and cooling temperature as well as fluctuations in electricity, natural gas prices, and propane prices where applicable. In some years, you may see substantial savings, while in other years you may come out even. 

Wondering if a hybrid HVAC system is right for your home?

If you’re looking to upgrade your heating and cooling system and are interested in reducing your carbon footprint, schedule a consultation with your local American Standard dealer. They can go over the pros and cons and answer all of your questions to help you make an informed decision.

For over 100 years, we’ve designed and manufactured some of the most awarded, well-engineered heating and cooling equipment and earned a reputation for doing things right.


Anne Fonda

Content Writer, Trane Technologies

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A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need. 

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.  

When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.


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