HYBRID HEATING SYSTEM

A hybrid heating system and method including: (a) a heat pump water heating system; (b) a conventional heating system including a conventional heater having a surface heat exchanger, and a primary circulation arrangement fluidly communicating with the surface exchanger, the primary circulation arrangement adapted to effect an exchange of heat between the surface heat exchanger and a flow of liquid to produce a heated flow of liquid; (c) a plurality of sensors associated with the heat exchange system; (d) an input arrangement adapted to provide cost data pertaining to a first power cost for supplying power to the heat pump system, and to cost information pertaining to a second power cost for operating the conventional system, and (e) a processor including a memory storing criteria specifying when to operate the heat pump water heating system, and when to operate the conventional heating system.