In our region (central Illinois) natural gas is about 1/3 the cost per joule than electricity. This makes combined heat and power very enticing for winter months. The natural gas generator would provide electricity. The motor's coolant is radiated inside the home and the exhaust can also pass through an air-to-air heat exchanger inside the home. Thus one can achieve ~80% energy efficiency from the NG.
This is very, very neat tech.
I don't know the capital cost so I don't know the ROI.
I've been looking at this stuff; but I do know the cost is such that you need to place a high value on the backup power portion in order to make the ROI worth it.
The electrical work would be tricky so that power is not put back into the incoming service line.
There's a couple ways to do this. Some sort of automatic transfer switch is one option, but so isn't leaving the main power on ala many green power systems to run the meter backwards such even during low electric demands the generator runs at optimal efficiency and during high the generator isn't overloaded.
Hmmm...
Thermostat turns on generator. Power is fed to a rectifier->powerline inverter system.
In addition, possibly separate due to low demand for integrated systems, an automatic transfer switch is also hooked in.
Situation Normal, heat needed:
Generator kicks on, feeds power through the rectifier to inverter system. You need the inverter to ensure phase matching. Waste heat proceeds to help heat house.
Situation: generator on due to heat demand, power goes out.
For power line safety, inverter system cuts out as designed.
ATS works as designed, isolates house electrical from wire, finds the generator already on and starts providing power using direct AC from generator. You'd want the computers and sensitive equipment on a UPS, and you might notice the lights blink.
Situation: generator off, no heat demand. power goes out
Inverter not functioning, not an issue. ATS kicks in. If it's during the summer, you'll want some ducting to direct the radiated heat outside, and a bypass for the exhaust heat exchanger. Since the generator isn't running, the time until the house has power again is a bit longer, depending on the exact nature of the generator and switch.
Let's get some numbers:
Guardian 17 kW Home Standby Generator, $4k 71 Amps capacity, should be plenty. 183 ft^3/hr, 1.61 gallons propane, at 50% load.
Briggs & Stratton 100-Amp Automatic Transfer Switch w/ Load Shedding $500
Solectria PVI 15KW 15KW Gridtie Inverter 208VAC , $10,166 (ouch, and only 208VAC)
SMA America SB7000US, $4k * 2 (cheaper, actually does 220/240VAC)
Call it $13-14k for the equipment alone? Things we'd still need: A way to tie the thermostat into turning the generator on. If you can somehow set it to turn the generator on, you might drop the largest expense - the inverter system. That would reduce the efficiency of the system though, especially if you're like me and don't use much electricity at night.