Although the micro combined heat and power generation is one of the most successful methods for decentralized generation, it still has not developed enough for the residential sector. Determining the optimal capacity and the dispatch profile of the micro-cogeneration systems can significantly influence the development of these technologies. In this paper, a novel integrated approach for determining the optimal capacity and the dispatch profile of the micro combined heat and power systems in residential buildings considering different operation strategies, objective functions, and components inclusion which adopts mixed-integer linear programming optimization by implementing logical constraint formulations, has been presented. Moreover, several essential specifications, such as inverter efficiency for direct-current based micro combined heat and power units, charging, discharging, and storage losses, as well as dumping of excess heat, have been considered as technical details. The developed model has been applied to four types of residential buildings with different heat and electricity consumption patterns. The results of the Pareto Front solutions demonstrate that the model can reduce the total annual cost and greenhouse gas emissions simultaneously by up to 62.5% and 14.9%, respectively, compared with the separate generation.