AbstractSpace heating applications account for a high share of global greenhouse gas emissions. To increase the renewable share of heat generation, seasonal thermal energy storage (STES) can be used to make thermal energy from fluctuating renewable sources available in times of high demand. A popular STES technology is pit thermal energy storage (PTES), where heat is stored underground, using water as a storage medium. To evaluate the use of PTES in an energy system, easily adaptable, publicly accessible and tool independent models are needed. In this paper, we improve an existing PTES model developed in the Modelica modeling language. The model is cross-compared with a more detailed and previously validated COMSOL model, considering different amounts of insulation, showing a deviation of 2–13% in the observed annual charged and discharged amount of heat. The results indicate that the presented model is well suited for early design stage and an exemplary case study is performed to demonstrate its applicability in a system context. Dimensions of system components are optimized for the levelized cost of heat (LCOH), both with and without subsidies, highlighting the importance of subsidies for the transition towards climate friendly heating solutions, as the gas boiler use is reduced from 47.6% to 2.7%.