In this paper, a linear programming model has been developed for the design and evaluation of biomass energy system, while taking into consideration demand side characteristics. The objective function to be minimized is the total annual cost of the energy system for a given customer equipped with a biomass combined cooling, heating and power (CCHP) plant, as well as a backup boiler fueled by city gas. The results obtained from the implementation of the model demonstrate the optimal system capacities that customers could employ given their electrical and thermal demands. As an illustrative example, an investigation addresses the optimal biomass CCHP system for a residential area located in Kitakyushu Science and Research Park, Japan. In addition, sensitivity analyses have been elaborated in order to show how the optimal solutions would vary due to changes of some key parameters including electricity and city gas tariffs, biogas price, electricity buy-back price, as well as carbon tax rate. (C) 2010 Elsevier Ltd. All rights reserved.