A Review of Residential Hybrid Heating in Nova Scotia

August 26, 2026

As more Nova Scotia households electrify, winter electricity demand is expected to increase. This study examines whether residential hybrid heating could help manage peak demand while supporting continued electrification.

Hybrid heating uses a heat pump as the primary heating source, with an existing fossil fuel system operating during periods of high electricity demand. Through customer research, a review of programs in other jurisdictions, and electricity system modelling, the study provides evidence to inform demand-side management and long-term electricity planning. It does not recommend or propose a specific program design.

Objectives

The project aimed to:

• Review hybrid heating programs and delivery models in Canada, the United States, and Europe;
• Assess customer awareness, participation interest, motivations, barriers, and preferred program features;
• Model the effects of different program designs and participation rates on peak demand, generation and storage requirements, system costs, and greenhouse gas emissions;
• Compare temperature-triggered and event-based controls; and
• Identify considerations for future evaluation and program design.

Key Findings

• Automated controls being more commonly applied in homes with central (ducted) heating systems.
• Initial willingness to participate in a hypothetical hybrid heating program was 39%, increasing to 61% after customers learned about the potential benefits.
• Financial savings were the strongest motivator for participation.
• Customers generally preferred automated temperature-based controls over direct third-party control.
• The high-participation hybrid heating scenarios modeled reduced winter peak demand by up to approximately 77 MW by 2040.
• The modelling showed reduced requirements for future combustion turbine generation and battery storage.
• Estimated electricity system value per participating household ranged from approximately $716 to $765 annually, excluding program administration, equipment, delivery, and other implementation costs.
• Temperature-triggered and event-based approaches presented a trade-off between reliability and emissions. Temperature-triggered approaches could sustain load reductions during extended cold-weather events but increased backup fuel use and GHG emissions, while event-based approaches more precisely targeted periods of highest system value but could provide less support during prolonged system risks if restricted to conventional short-duration windows.

Outcomes

The study identifies hybrid heating as a potential transitional tool within a broader portfolio of demand-side management and electrification solutions. Its future value will depend on program design, customer participation, economics, and how it compares with other options in Nova Scotia’s long-term electricity planning.

Further analysis would be required to assess program costs, incentives, governance, delivery, customer impacts, and overall cost-effectiveness before implementation decisions are made.

Support for the Project

This research project was supported through funding from the Province of Nova Scotia and additional in-kind support and collaboration provided by Nova Scotia Power, the Independent Electricity System Operator of Nova Scotia (IESO-NS), and EfficiencyOne

a_review_of_residential_hybrid_heating_in_nova_scotia_appendixa.pdf (418.9 KB)

a_review_of_residential_hybrid_heating_in_nova_scotia_appendixb.pdf (232.52 KB)