Cogeneration technology—the simultaneous production and use of heat and electric power from the same device or system—has been made practical for the residential market by a collaboration between American Honda Motor Co. and Climate Energy LLC. The Climate Energy Micro-CHP (micro-sized combined heat and power system) combines a 95 percent efficient natural-gas furnace or boiler with Honda's 85 percent efficient compact engine/generator module. Configured to replace conventional furnaces and boilers, the Micro-CHP system produces electrical power as a by-product of the normal supply of heat to the home.
During normal heating demand periods, the engine runs alone to produce heat and electricity. The boiler or furnace kicks in to supplement the heat produced by the engine only when the engine cannot supply the amount of heat demanded.