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In combination with seasonal thermal energy storage (STES), solar energy offers a vast potential for decarbonizing the residential heat supply. In this work, a parametric optimization is conducted to assess the potential of reducing the costs of water-based STES through the use of alternative thermal insulation materials and the integration of an underground storage outside the building. The investigated configurations include: a hot-water tank, a solar collector installation, and a multifamily building with a solar fraction of 100%. The storage is either integrated inside the building or buried underground in its direct vicinity. A simulation-based analysis shows that if the tank is integrated inside an existing building (as part of a retrofitting action) – where costs are primarily driven by the loss of living space – vacuum-insulation panels can lead to significant savings in living space and a cost advantage compared to the use of conventional glass wool. Nevertheless, storage integration inside an existing building is a more expensive option compared to an external integration due to the high costs associated to the internal building modification and loss of living space. Despite the high excavation costs and increased heat losses, the concept of burying the storage underground is a promising option to allow the integration of large-volume seasonal storage systems in new and existing buildings.

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