The increasing demand for electrical power as well as energy for heating and cooling of residences and small commercial buildings is a growing worldwide concern. Micro-cooling, heating, and power (micro-CHP), typically designated as less than 30 kW electric, is decentralized electricity generation coupled with thermally activated components for residential and small commercial applications. The number of combinations of components and parameters in a micro-CHP system is too many to be designed through experimental work alone. Therefore, theoretical models for different micro-CHP components and complete micro-CHP systems are needed to facilitate the design of these systems and to study their performance. This paper presents a model for micro-CHP systems for residential and small commercial applications. Some of the results that can be obtained using the developed model include the cost per month of operation of using micro-CHP versus conventional technologies, the amount of fuel per month required to run microCHP systems, the overall efficiency of micro-CHP systems, etc. A case study is used to demonstrate differences in the system performances of micro-CHP systems driven by a natural gas internal combustion engine and a diesel engine. Some of the results show that both systems have similar performance and that system total efficiencies in cooler months of up to 80% could be obtained. Also, modeling results show that there is a limit in fuel price that economically prevents the use of CHP systems, which is $11 MBTU-1 for this specific case. Copyright (c) 2008 John Wiley & Sons, Ltd.