AbstractThis study aims to provide detailed information on the key technologies that utilize renewables for decarbonization and electrification of the residential heating sector. To contextualize and compare the economics of the technologies, a levelized cost model is employed to perform a comparative analysis for a dense urban area in Switzerland. The outcome shows that decarbonization of the heat supply with a dominant share of renewables is feasible, but it is challenged by the high cost of some options. In the given context (current energy and CO2 prices, no coercive measures), the rapid shift from conventional boilers to electrification via decentralized heat pumps and/or the introduction of targeted small-scale thermal energy networks utilizing cheap local resources like industrial excess heat is the most viable option. The replacement of natural gas boilers with electrification technologies also is recommendable because it would result in a sixfold reduction in specific CO2 emissions. Wide-scale application of heat pumps may require significant electricity grid reinforcement which ultimately may escalate the costs. Large-scale district heating systems are currently relatively expensive due to the high network costs and require a sustainable financing mechanism. To speed up the energy transition, policy interventions by the government are urgently needed.