DCHE (Desiccant coated heat exchanger) based heat pump systems can handle sensible and latent loads simultaneously and separately within one single component via flowing refrigerant and coated desiccant. Their characteristics have a crucial impact on the performance of the whole system. To ensure energy efficiency of DCHE based systems, the restriction between refrigerant and desiccant is discussed based on energy consumption analysis. Results show that energy consumption of the DCHE based heat pump is intimately related with its coefficient of performance and adsorption heat of coated desiccant. R410A and R32 are found to be promising refrigerants for DCHE systems. Maximum allowable values of adsorption heat under different ambient air conditions and sensible heat ratios are obtained. Desiccant materials with adsorption heat of 2300-3000 kJ/kg such as various silica gels, all-silica zeolites and salt supported composites are within maximum allowable values of adsorption heat for most conditions. When applying the majority of zeolite type desiccants that possess adsorption heat more than 4000 kJ/kg, great attention should be paid to the determination of supply-air temperature difference. This paper provides the underlying insights needed to guide a fast and proper selection of refrigerants and desiccants for DCHE based systems.