The performance of a multiple (solar, air, and water) source heat pump was optimized by the use of collector plates made with finned tubing extrusions and by the use of three stages of capacity control. The heating season performance factor, the ratio of the heating output to the power input, was estimated to be two for the systems operating in the cold climates of Montreal and Toronto. The use of a water storage system would not significantly improve the seasonal performance and is not warranted.Although the heat pump under investigation has been considered for space heating, it may be used for supplying process hot water at a temperature of 122°F (50°C). Preliminary investigation of the performance of the system as a process hot water heating system indicates that the system would conserve more energy annually than a system having a similar output used for space heating.