© 2014 Elsevier B.V. All rights reserved.The present study deals with evaluating the performance of a building heating system along with its main components using advanced low exergoeconomic analysis method. This method combines advanced exergoeconomic with low exergy (LowEx) and is shortly called ALEXERGO. A building heating system is investigated from the energy production to the building envelope stage by stage through the ALEXERGO for the first time by the authors. Based on the results, the generation and distribution stages are found to have bigger exogenous exergy destruction cost rates, meaning that the components in these stages have strong interconnections. The emission (heating) stage has, however, a bigger endogenous exergy destruction cost rate. The generation and emission stages have low improvement potentials while the distribution stage has a big improvement potential. A sensitivity analysis is also made based on the environmental temperature for exergy destruction rates and efficiencies.