The key to getting the most economy out of a hybrid is identifying the economic balance point temperature. This is the temperature in which a furnace begins heating the home for fewer costs than the heat pump. A contractor can simply calculate this using the manufacturing heat pump and furnace ratings and local utility costs. A hybrid system is unlikely to be cost effective if the economic balance point is higher than 35° F.

If the balance point falls below 35° F, then there is a better chance a hybrid will be the choice system, but only a contractor can determine the true savings vs. investment decision. Factors such as home structure, equipment selection, local utility costs, weather and usage will all play a role in determining the final economic benefit.

More than likely, if you already have a furnace and an air conditioner, a hybrid will have a payoff. If you have short summer seasons and reasonable fuel rates, like Alaska, then a hybrid is probably not the right choice. If you have short winters and long summers, like parts of Florida, then a heat pump system to heat the home may still remain the right system economically.