The goal of this paper is to propose an optimization scheme for enhancing power dispatch and load scheduling for residential fuel cell-based combined heat and power systems (FC-CHPS) using mixed integer linear programming (MILP), considering the lifetime degradation of both the fuel cell system (FCS) and battery energy storage systems (BESS). The scheme is applied in the home energy management system that oversees the electric and thermal power of residential FC-CHPS. First, the nonlinearity in the relationship between the natural gas consumption and output electric power, and between the residual thermal power and output electric power of the fuel cell system (FCS) in the FC-CHPS is approximated using piecewise linearization. Then, the piecewise linearization is integrated with MILP to derive optimal power dispatch and load scheduling solutions, while accounting for the nonlinearity of the FCS. Next, cost functions representing the lifetime degradation of FCS and BESS are formulated. These cost functions result in nonlinear optimization constraints. Therefore, innovative methods are proposed to linearize these constraints, allowing the continued use of MILP as the optimization method and factoring in the lifetime degradation of FCS and BESS. Compared to the mixed-integer non-linear programming (MINLP) method that does not linearize the non-linearity in the FCS or the lifetime degradation of the FCS and BESS, the proposed MILP scheme achieves the identical objective function value. Furthermore, the computation time for the proposed MILP scheme is 99.94 % lower than that required by the MINLP method. The proposed scheme provides accurate results in short computation times.