<p>A proper heating, ventilation, and air conditioning (HVAC) demand management system plays a prominent role in managing energy intake and taking a significant step towards sustainable housing with the goal of achieving net-zero emissions. Through experiments and simulations, this study investigated the viability of a recently developed adaptive cloud-based Smart Dual Fuel Switching Systems (SDFSSs) controller for residential hybrid HVAC systems. These systems consider various temporal parameters such as weather condition, building thermal demand, fuel price structure, and equipment capabilities into account to optimize space heating system operation, thereby lowering operating costs and greenhouse gas (GHG) emissions. Results show that by integrating SDFSS with existing ASHP technology, GHG emissions could be reduced by over 80 to 90% by 2030 with carbon pricing of $170/tonne. The results of this study could form a modelling and policy framework for different communities and regions. SDFSS would facilitate progressively and cost-effectively transitioning from existing fossil fuel-dominated heating systems to the low-carbon alternative of electric heat pumps powered by clean electricity. Due to the SDFSS’ responsiveness to the random and intermittent nature of renewable energy supply, hybrid heating systems equipped with SDFSS would facilitate wider penetration of renewable energy. Consequently, net-zero emissions could easily be achieved at a greatly accelerated pace before 2050.</p>