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Through tests conducted at the Toronto and Region Conservation Authority's (TRCA) Archetype Sustainable Houses, a hybrid residential space heating system with a supervisory controller was monitored and studied to evaluate its performance and effectiveness for the heating season. A high efficiency natural gas furnace (NGF) and an electric air source heat pump (ASHP) were coupled together to meet the space heating demand of the house. This integrated system is called the cloud based Smart Dual Fuel Switching System (SDFSS) that considers time-of-use (TOU) pricing, fuel cost, short-term weather forecast, and equipment efficiencies and capacities. This multi-variable decision-making process defines an optimal schedule for the hybrid system to run more cost effectively. This paper analyses two separate SDFSSs. According to these analyses, the SDFSS systems showed lower operating cost with respect to the furnace or the ASHP system alone with various carbon tax (CT) levels from $0 to $250/tonne of CT with an increment of $10/tonne of CT that were simulated, along with a significant GHG emission reduction relative to the conventional heating systems. Furthermore, with these technologies, Canada's residential sector could potentially meet Canada's Paris Agreement goals. The SDFSS technology is a is flexible, user friendly, ubiquitous technology for the smooth transition from today's natural gas dominated space heating system to the future's low carbon infrastructure powered by a heat pump and renewable energy. [ABSTRACT FROM AUTHOR]