Micro-cogeneration systems are a promising technology for improving the energy efficiency near the end user, allowing the optimal use of the primary energy sources and significant reductions in carbon emissions. Its use, still incipient, has a great potential for applications in the residential sector. This study aims to develop a methodology for the thermal-economic optimization of micro cogeneration units using Stirling engine as prime mover and concentrated solar energy as the heat source. The thermal-economic optimization was formulated considering the maximization of the annual worth from the system operation, subjected to the nonlinear thermodynamic and economic constraints. The physical model includes the limitations in the heat transfer processes and losses due to the pumping effects and the costing methodology was defined considering a purchase cost equation representative of each system component. Geometric and operational parameters were selected as decision variables. Numerical simulations were developed in MatLab (R) programming language and the Generalized Pattern Search optimization algorithm with MADSPositiveBasis2N was used in the determination of the optimal solution. A positive annual worth for the defined input simulation conditions and the economic analysis disclosed a system, economically attractive, with a payback period of approximately 10 years. (C) 2016 Elsevier Ltd. All rights reserved.