This work aims to demonstrate the feasibility of solar heating of a stand-alone house located in a continental climate region in Algeria. The design and optimisation of this system are based on dynamic simulations of a typical rural house using a TRNSYS-Fortran program. To manage all the subsystems composing the heating system, a pertinent control strategy is adopted. Using 2.8-m3 storage tanks, the optimal solar share in meeting the annual thermal needs of the house is 46%. Besides, an energy-efficient design based on a local bio-composite thermal insulation material reduces the thermal energy needs of the house by 42%. The results of optimisation calculations are compared to experimental tests and show good agreement. For environmental impact, the study reveals that 39% of CO2 emissions can be avoided annually. Moreover, the economic cost of the system has been evaluated, and the results show that the payback period is 53 years.