diff --git a/config.default.yaml b/config.default.yaml
index 292e3baf2..6c2ecf7fa 100644
--- a/config.default.yaml
+++ b/config.default.yaml
@@ -102,6 +102,8 @@ sector:
   'electricity_distribution_grid' : False
   'electricity_distribution_grid_cost_factor' : 1.0  #multiplies cost in data/costs.csv
   'electricity_grid_connection' : True  # only applies to onshore wind and utility PV
+  'gas_distribution_grid' : True
+  'gas_distribution_grid_cost_factor' : 1.0  #multiplies cost in data/costs.csv
 
 costs:
   year: 2030
diff --git a/config.myopic.yaml b/config.myopic.yaml
index 0a4f21bb0..6ae542024 100644
--- a/config.myopic.yaml
+++ b/config.myopic.yaml
@@ -102,6 +102,8 @@ sector:
   'electricity_distribution_grid' : False
   'electricity_distribution_grid_cost_factor' : 1.0  #multiplies cost in data/costs.csv
   'electricity_grid_connection' : True  # only applies to onshore wind and utility PV
+  'gas_distribution_grid' : True
+  'gas_distribution_grid_cost_factor' : 1.0  #multiplies cost in data/costs.csv
 
 costs:
   year: 2030
diff --git a/scripts/prepare_sector_network.py b/scripts/prepare_sector_network.py
index dc25327bc..7c219918f 100644
--- a/scripts/prepare_sector_network.py
+++ b/scripts/prepare_sector_network.py
@@ -665,6 +665,7 @@ def insert_electricity_distribution_grid(network):
                  lifetime=costs.at['electricity distribution grid','lifetime'],
                  capital_cost=costs.at['electricity distribution grid','fixed']*snakemake.config["sector"]['electricity_distribution_grid_cost_factor'])
 
+
     #this catches regular electricity load and "industry new electricity"
     loads = network.loads.index[network.loads.carrier.str.contains("electricity")]
     network.loads.loc[loads,"bus"] += " low voltage"
@@ -678,22 +679,30 @@ def insert_electricity_distribution_grid(network):
     hps = network.links.index[network.links.carrier.str.contains("heat pump")]
     network.links.loc[hps,"bus0"] += " low voltage"
 
+    rh = network.links.index[network.links.carrier.str.contains("resistive heater")]
+    network.links.loc[rh, "bus0"] += " low voltage"
+
+    mchp = network.links.index[network.links.carrier.str.contains("micro gas")]
+    network.links.loc[mchp, "bus1"] += " low voltage"
+
     #set existing solar to cost of utility cost rather the 50-50 rooftop-utility
     solar = network.generators.index[network.generators.carrier == "solar"]
-    network.generators.loc[solar,"capital_cost"] = costs.at['solar-utility','fixed']
+    network.generators.loc[solar, "capital_cost"] = costs.at['solar-utility',
+                                                             'fixed']
+    # add max solar rooftop potential assuming 1kW/person
+    potential = pop_layout.total.rename(index = lambda x: x + " solar")
 
-    network.madd("Generator", solar,
+    network.madd("Generator",
+                 solar,
                  suffix=" rooftop",
-                 bus=network.generators.loc[solar,"bus"] + " low voltage",
+                 bus=network.generators.loc[solar, "bus"] + " low voltage",
                  carrier="solar rooftop",
                  p_nom_extendable=True,
-                 p_nom_max=network.generators.loc[solar,"p_nom_max"],
+                 p_nom_max=potential,
                  marginal_cost=network.generators.loc[solar, 'marginal_cost'],
-                 capital_cost=costs.at['solar-rooftop','fixed'],
+                 capital_cost=costs.at['solar-rooftop', 'fixed'],
                  efficiency=network.generators.loc[solar, 'efficiency'],
-                 p_max_pu=network.generators_t.p_max_pu[solar],
-                 lifetime=costs.at['solar-rooftop','lifetime'])
-
+                 p_max_pu=network.generators_t.p_max_pu[solar])
 
 
     network.add("Carrier","home battery")
@@ -732,6 +741,20 @@ def insert_electricity_distribution_grid(network):
                  p_nom_extendable=True,
                  lifetime=costs.at['battery inverter','lifetime'])
 
+
+def insert_gas_distribution_costs(network):
+    f_costs = options['gas_distribution_grid_cost_factor']
+    print("Inserting gas distribution grid with investment cost\
+          factor of", f_costs)
+
+    # gas boilers
+    gas_b = network.links[network.links.carrier.str.contains("gas boiler") &
+                          (~network.links.carrier.str.contains("urban central"))].index
+    network.links.loc[gas_b, "capital_cost"] += costs.loc['electricity distribution grid']["fixed"] * f_costs
+    # micro CHPs
+    mchp = network.links.index[network.links.carrier.str.contains("micro gas")]
+    network.links.loc[mchp,  "capital_cost"] += costs.loc['electricity distribution grid']["fixed"] * f_costs
+
 def add_electricity_grid_connection(network):
 
     carriers = ["onwind","solar"]
@@ -1693,7 +1716,7 @@ def remove_h2_network(n):
                        timezone_mappings='pypsa-eur-sec/data/timezone_mappings.csv',
                        co2_budget='pypsa-eur-sec/data/co2_budget.csv',
                        clustered_pop_layout='pypsa-eur-sec/resources/pop_layout_{network}_s{simpl}_{clusters}.csv',
-                       costs='pypsa-eur-sec/data/costs/costs_{planning_horizons}.csv',
+                       costs='technology-data/outputs/costs_{planning_horizons}.csv',
                        profile_offwind_ac='pypsa-eur/resources/profile_offwind-ac.nc',
                        profile_offwind_dc='pypsa-eur/resources/profile_offwind-dc.nc',
                        clustermaps="pypsa-eur/resources/clustermaps_{network}_s{simpl}_{clusters}.h5",
@@ -1834,6 +1857,8 @@ def remove_h2_network(n):
 
     if snakemake.config["sector"]['electricity_distribution_grid']:
         insert_electricity_distribution_grid(n)
+    if snakemake.config["sector"]['gas_distribution_grid']:
+        insert_gas_distribution_costs(n)
     if snakemake.config["sector"]['electricity_grid_connection']:
         add_electricity_grid_connection(n)