Abstract: A cogeneration system is disclosed using a Stirling cycle engine in which the waste heat from the engine and a generator driven by the engine is used for space heating or producing hot water and the generator used to produce electricity. A Stirling engine has numerous advantages over a reciprocating internal combustion engine in cogeneration systems in that the Stirling engine has a longer life, less maintenance cost, less noise and vibration and fewer emissions. With cogeneration, the added energy and fuel required over and above that required to produce a comparable amount of heat allowed to produce the same amount of heat with a conventional furnace or boiler is often less than the amount of electric energy produced from the system thereby resulting in a efficiency greater than 100% in the production of electricity.