The independent fuel cell micro-grid that accommodates power and heat independently without connecting with other power systems is expected to back up power supply in an emergency, and at peak cuts of a power plant, and the effective use of exhaust heat is anticipated. Therefore, this paper analyses the cost minimization problem of the arrangement planning of a fuel cell system, and the feeding order of exhaust heat. An analysis programme for operation plan at the time of connecting a distributed fuel cell with an energy network was developed using a genetic algorithm. The fuel cell energy network was optimized in six buildings to minimize operation costs, facility costs, and the installation costs of the facilities. As a result, the analysis method for the arrangement plan for the capacity of each installed fuel cell, boiler, heat storage tank, and hot-water circulating pump was clarified. If the hot-water network of the distributed fuel cell is installed, in the winter of a cold district, facility cost is disadvantageous compared with the conventional method. Copyright (C) 2007 John Wiley & Sons, Ltd.