In this study an optimization method for the design of combined solar and pellet heating systems is presented and evaluated. The paper describes the steps of the method by applying it for an example of system. The objective of the optimization was to find the design parameters that give the lowest auxiliary energy (pellet fuel + auxiliary electricity) and carbon monoxide (CO) emissions for a system with a typical load, a single family house in Sweden. Weighting factors have been used for the auxiliary energy use and CO emissions to give a combined target function. Different weighting factors were tested. The results show that extreme weighting factors lead to their own minima. However, it was possible to find factors that ensure low values for both auxiliary energy and CO emissions.