An analysis of the best ways of meeting the space heating and domestic hot water (DHW) needs of new energy-efficient houses with very low requirements for space heat is provided. The DHW load is about equal to the space heating load in such houses in northern climates. The equipment options which should be considered are discussed, including new equipment recently introduced in the market. It is concluded that the first consideration in selecting systems for energy-efficient houses should be identification of the air moving needs of the house for heat distribution, heat storage, ventilation, and ventilative cooling. This is followed, in order, by selection of the most appropriate distribution system, the heating appliances and controls, and the preferred energy source, gas, oil, or electricity.