About 50% of the primary energy supply in The Netherlands is used for heat production. To achieve a sustainable heat-supply system, it is necessary to obtain insight into costs, efficiency and environmental impacts for existing and possible future technologies. We have performed a comparative system analysis on six possible heat-supply chains (distribution and conversion) providing low-temperature heat to households to obtain a clear picture of their likely long-term economic, energetic and environmental performance to the year 2030. The systems studied are based on natural gas distribution [local condensing boilers or micro-cogeneration (indoors)] and on electricity (heat-pumps) and heat-distribution (district heat and small-scale cogeneration). A systems analysis was used. A heat-supply system based on district heating and/or electricity distribution turns out to be a good alternative to the present gas-based system. In addition, introduction of these systems will facilitate the future sustainability of energy sources.