Industries consume a significant amount of energy. The final energy use in energy is usuallyeither in form of heat or electricity. Bifurcation of energy use reveals that 74 % of thisenergy use is in the form of heat, and rest 26 % in the form of electricity. The global effortsfor decarbonization are mostly focused on renewable electrification using solar photovoltaic,wind mill etc. However, the heat is often an important but neglected component ofdecarbonization strategies. More efforts are needed to envision renewable heat as mainstream heat source for future, similar to as solar photovoltaic or wind mills are seen for theelectricity.To achieve the goal of clean heat with minimal CO2 emissions, it is critical to focus anddevelop efficient heating technologies with minimal emissions for its life cycle. There existmany technologies which can provide low carbon heating for industrial sectors. For example,relatively new technology on the market is high-temperature heat pumps (HTHP). HTHPis currently in development stage to play its part in industrial energy paradigm. Furthermore,solar thermal heating solution such as by parabolic trough collector (PTC) has a decade-longhistory of implementation in industrial energy systems. Recent studies have shown asignificant interest in solar thermal heating solution for industrial applications in Europe andaround the World. Another technology in development phase is photovoltaic thermalcollectors (PVT), which can generate heat and electricity using a single module, and thusallowing more efficiency use of area.The main vision of this thesis is based on the technological collaboration, which can supportindustries to provide cost effective heating solution. More specifically, this thesis aims tocarry a techno-economic analysis to optimize a hybrid system using PTC, HTHP, and PVT.A real case energy system based in Spain is used to set up the boundary conditions, andsimulations are performed in TRNSYS, and MATLAB for individual technologies, and thenfor the hybrid system. Results show that a hybrid system of solar thermal collectors andHTHP has maximum potential for carbon mitigation when compared to the case when thesetechnologies are used individually. This thesis further aims to promote an industrial researchcollaboration where technologies suppliers can work together to propose a solution forindustrial heat which is cost effective, and have significantly lower CO2 emissions compareto fossil fuel boilers.