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[Display omitted] This paper evaluates the cost benefits of combining energy efficiency practices and hybrid photovoltaic-biomass distributed generation systems to design standalone rural housing in Morocco. This integrated analysis approach seeks an enhancement of the economic and environmental sustainability of rural housing units in the Fez region. It utilizes optimization selection procedures to identify both, the energy efficient and renewable energy technologies readily available in the region to reduce the cost and energy use of the housing units. The results of the integrated design indicate that an optimally designed house can reduce life cycle costs by 25% and carbon emissions by 47.13% compared to the current practices. Applying the optimized design to 30-residential houses can result in a decrease of the cost of energy (COE) for the proposed system from 0.155 US$/kW h to 0.125 US$/kW h. However, a sensitivity analysis confirmed that the availability of biomass resource influences greatly the economic viability of the proposed hybrid system. Increasing the daily collected biomass resources from 2.5 to 8.5 tons/day causes a drop in the COE by 46.6%. [ABSTRACT FROM AUTHOR]