The potential for both heat and power extraction from a PEM fuel cell is investigated experimentally and using computer simulation to improve the economics of a solar-hydrogen system supplying energy to a remote household. The overall average energy efficiency of the fuel cell was measured to be about 70% by utilizing the heat generated for domestic water heating, compared to only 35-50% for electricity generation alone. The corresponding round-trip energy efficiency of the hydrogen storage sub-system (electrolyzer, storage tank, and fuel cell) was raised from about 34% in a power-only application to about 50% in combined heat and power (CHP) mode. The economic benefit of using the fuel cell heat for boosting an LPG hot water system over a 30-year assessment period is estimated to be equivalent to about 15% of the total capital cost of the solar-hydrogen system. The stoichiometry of the input air, and the fuel cell operating temperature, were found to influence significantly the overall performance of the solar-hydrogen CHP system. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.