This paper considers the effect that different hot water storage tank modelling approaches have on the global simulation of residential CHP plants as well as their impact on their economic feasibility. While a simplified assessment of the heat storage is usually considered in the feasibility studies of CHP plants in buildings, this paper deals with three different levels of modelling of the hot water tank: actual stratified model, ideal stratified model and fully mixed model. These three approaches are presented and comparatively evaluated under the same case of study, a cogeneration plant with thermal storage meeting the loads of an urbanisation located in the Bilbao metropolitan area (Spain). The case of study is simulated by TRNSYS for each one of the three modelling cases and the so obtained annual results are analysed from both a First and Second-Law-based viewpoint. While the global energy and exergy efficiencies of the plant for the three modelling cases agree quite well, important differences are found between the economic results of the feasibility study. These results can be predicted by means of an advanced exergy analysis of the storage tank considering the endogenous and exogenous exergy destruction terms caused by the hot water storage tank. (C) 2011 Elsevier Ltd. All rights reserved.