Waste incineration (WI) is a promising heat source for Nordic countries district heating (DH) plants, especially in Norway. The year-round production of WI and the summer’s lower heat demand make it challenging to fully utilize this energy source. Meanwhile, to meet consumer demands during winter peak loads, other energy sources must be integrated with DH. To tackle this seasonal mismatch, borehole thermal energy storage (BTES) has appeared as a viable option. However, the integration of BTES and DH fed by WI plant presents design and operation challenges due to the varying dynamics of components. This study investigated the trade-off between key system performance indices influenced by design and operation parameters such as borehole depth, preheating duration, and charging period. The findings indicated that BTES recovery efficiency fluctuates between 61% and 85% with variations in design and operational parameters. Moreover, increasing borehole depth from 100 to 200 m reduced ground source heat pump electricity use by up to 38% and achieved up to 59% heat demand coverage by discharge of the thermal energy storage.