An economic analysis comparing four different boiler systems running on olive husks, liquefied petroleum gas (LPG), diesel and electricity used to provide both space and water heating in a standard size apartment located in Lebanon's high mountain area is presented in this study. The results show that the electric boiler system is the most polluting and cost ineffective system with an average energy price of 0.31 $/kWh over its life time, compared to only 0.13 $/kWh for the olive husk or LPG powered boiler systems, and to 0.14 $/kWh for the diesel powered system. Moreover, the current subsidy on diesel oil constitutes a substantial barrier against the deployment of renewable energy as well as other systems running on much cleaner fuels. This paper further presents a financial analysis ranking the different systems in terms of their net present values and suggests measures such as an import tax break and the redirection of the currently existing diesel subsidy towards the olive husk powered system in order to increase the attractiveness of the latter. (c) 2012 Elsevier B.V. All rights reserved.