This study aims to investigate and identify the most effective thermal energy storage (TES) system configuration for the collective heating of buildings. It compares three TES technologies, i.e., sensible, latent, and cascade latent shell and tube storage, and examines their respective performances. A fast and accurate lumped thermal dynamic model to efficiently simulate TES system performances under different operation conditions is developed. The validation of this model’s accuracy is achieved by aligning numerical findings with data from prior experimental studies. Key findings indicated that the latent and cascade latent shell and tube storage systems demonstrate superior thermal energy storage capacities compared to the sensible configuration. Using a single-phase change material (PCM) tank increases the duration of constant thermal power storage by about 50%, and using a cascade PCM tank further enhances this duration by approximately 65% compared to the sensible TES case. Moreover, the study revealed that adjusting the PCM composition within the cascade TES significantly influenced both thermal power storage durations and pumping energy consumption. In summary, the recommended cascade PCM configuration for collective heating of buildings offers a balanced solution, ensuring prolonged stable thermal power production, elevated HTF outlet temperatures, and improved energy efficiency, presenting promising prospects for enhancing TES systems in district heating applications.