We propose a new analytical method for a composite dielectric grating embedded with conducting strips using scattering factors in the shadow theory. The scattering factor in the shadow theory plays an important role instead of the conventional diffraction amplitude. By specifying the relation between scattering factors and spectral-domain Green's functions, we derive expressions of the Green's functions directly for unit surface electric and magnetic current densities, and apply the spectral Galerkin method to our formulation. From some numerical results, we show that the expressions of the Green's functions are valid, and analyze scattering characteristics by composite gratings.