Individual heating consumption for dwelling buildings has an important part in Latvia’s energy balance. Increasing energy efficiency and reducing primary energy in the household sector can play a role in national energy targets. This paper analyses three different heating systems which focus on a pellet boiler and solar collector combined system. The performance of existing solar collectors is analysed and the solar collector system performance ratio is determined. Costs including investments, fuel and maintenance have been analysed and a comparison between systems is made using the indicator – costs per produced energy. Results show that the performance of the solar collector system should be increased or investments should decrease to meet the cost effectiveness of other analysed heating systems.