In order to increase the utilization of renewable energy and reduce carbon dioxide emissions, a solar assisted - air source heat pump (SA-ASHP) domestic hot water supply system is proposed, designed and built, the thermal performance and economy are numerically simulated and experimentally verified, the optimal design parameters are determined based on the economic optimization analysis. The results show that the coefficient of performance (COP) of air source heat pump (ASHP) varies from 2.62 to 3.93 and the COP of SA-ASHP system varies from 2.76 to 6.26. The solar fraction varies from 8.83% to 45.51%, and varies greatly in different seasons. The simulated heat collection of solar collector, the power consumption and heating capacity of ASHP, and the total power consumption of water pump are in good agreement with the measured results. Compared with the existing SA-ASHP system, the annual cost has decreased by 1998.32USD, annual cost converted from initial investment has decreased by 629.08USD, operating cost has decreased by 1369.25USD and total power consumption has decreased by 16897.79 kWh of the optimized SA-ASHP system. The optimum ratio between the input power of ASHP and the collector area is 0.078 kW/m2. The research results play an important role in guiding the design, operation and heat source selection of domestic hot water (DHW) system in student dormitory.