These systems are efficient, but not prolific
No mechanical device that converts fuel to usable energy does so with 100% efficiency. Cars are about 20% to 35% efficient. Electrical plants that burn coal are about 30% efficient. The key to boosting efficiency is to make use of the heat normally lost. In the case of an engine, this requires efficient, durable heat exchangers installed on the exhaust and engine block. This heat can be used in a variety of ways, such as space-heating or water-heating.
Micro-cogenerators run air-conditioning equipment efficiently because they use the engine’s mechanical energy to drive the refrigeration compressors directly. This saves the conversion from mechanical to electrical and then from electrical back to mechanical to drive the compressor.
Currently, large-scale CHP systems produce about 8% of the power in the United States. This is a small slice, but it represents billions of dollars in savings by reducing over a trillion Btus of yearly energy demand. Micro equipment is available for domestic use, but it is rare. Polar Power (www.polarpowerinc.com) makes a $15,000 (installed cost) micro-cogeneration unit that delivers 34,000 Btu/ hour of air-conditioning, up to 60,000 Btu/hour for space- or water-heating, and up to 6000w of electricity.