Cogeneration provides heat and power in a more efficient way than separate production. Micro-cogeneration (micro-CHP) is an emerging solution for the improvement of energy and environmental assessments of residential buildings. A wood pellet Stirling engine micro-CHP unit has been studied in order to characterize its annual performance when integrated to a building. First, through a test bench experiment, both transient and steady state behaviors of the micro-CHP unit have been characterized and modeled. Then a more complete model representing a hot water and heating system including the micro-CHP unit and a stratified storage tank has been carried out. This model has been coupled to a building model. A sensitivity analysis by simulation shows that the dimensioning of different elements of the system strongly influences its global energy performance. (C) 2010 Elsevier B.V. All rights reserved.