This paper presents the design and prototype of a Low Cost Domestic Heating System (DHS) using a state-of-the-art micro-controller based Embedded Control Module (ECM). The prototype is intended for use in experimentation and research leading to the mass production of such systems for use in developing countries where energy resources are limited, and the cost of such resources is relatively high.   Any of the available sources of energy, e.g., natural gas, electricity, solar PV, solar thermal, wind energy, or a combination of these, can be used for heating the water. The ECM uses intelligent algorithms to select the optimum source of energy from those that are available at a given location on a given day and time. As a result, the system will offer a cheaper, cleaner and safer solution for domestic heating as compared to the existing heating systems.