This paper presents a multi-objective optimization approach for designing residential cogeneration systems based on a new superstructure that allows satisfying the demands of hot water and electricity at the minimum cost and the minimum environmental impact. The optimization involves the selection of technologies, size of required units and operating modes of equipment. Two residential complexes in different cities of the State of Michoacan in Mexico were considered as case studies. One is located on the west coast and the other one is in the mountainous area. The results show that the implementation of the proposed optimization method yields significant economic and environmental benefits due to the simultaneous reduction in the total annual cost and overall greenhouse gas emissions. (C) 2015 Elsevier Ltd. All rights reserved.