This study deals with exergetic and exergoeconomic analyses of a building heating system, which is examined from the generation component to the envelope of the building. The energy and exergy flows between the components are calculated using the predesign tool for an optimized building design. To the best of the authors' knowledge, the specific exergy costing (SPECO) method is applied to a building along with a low-exergy (also referred to as Lowex) analysis for the first time. By adding the value from the generation to the emission components, the exergetic cost coefficients of the products are determined to be 174.67 $/GJ and 256.89 $/GJ, respectively. Exergetic cost effectiveness (ECE) parameter is used to decide about which components will be improved. The first two high values are found to be 0.469 and 0.0057 for the generation and the building envelope, respectively. (C) 2014 Elsevier B.V. All rights reserved.