This paper focuses on the study of cascade heat pump systems in combination with solar thermal for the production of hot water and space heating in single family houses with relatively high heating demand. The system concept was developed by Ratiotherm GmbH and simulated with TRNSYS 17. The basic cascade system uses the heat pump and solar collectors in parallel operation while a further development is the inclusion of an intermediate store that enables the possibility of serial/parallel operation and the use of low temperature solar heat. Parametric studies in terms of compressor size, refrigerant pair and size of intermediate heat exchanger were carried out for the optimization of the basic system. The system configurations were simulated for the complete year and compared to a reference of a solar thermal system combined with an air source heat pump. The results show ~13% savings in electricity use for all three cascade systems compared to the reference. However, the complexity of the systems is different and thus higher capital costs are expected.