We propose a generic mixed integer linear programming model to minimize the operating cost of a residential microgrid. We model supply and demand of both electrical and thermal energy as decision variables. The modeled microgrid is operated in grid-connected mode. It covers solar energy, distributed generators, energy storages, and loads, among them controllable load jobs released by home appliances and electric vehicles. We propose a model predictive control scheme to iteratively produce a control sequence for the studied microgrid. Our case study reveals the performance of minimum cost control by comparison with benchmark control policies. We consider three price scenarios in our analyses which include two market-based scenarios. Numerical results from our study indicate savings in annual operating cost between 3.1 and 7.6 percent. (C) 2012 Elsevier Ltd. All rights reserved.