The design and performance of a fuel cell based residential combined heat and power (CHP) system operating on natural gas has been analyzed. The natural gas is first converted to a hydrogen-rich reformate in a steam reformer based fuel processor, and the hydrogen is then electrochemically oxidized in a low temperature polymer electrolyte fuel cell to generate electric power. The heat generated in the fuel cell and the available heat in the exhaust gas is recovered to meet residential needs for hot water and space heating. Two fuel processor configurations have been studied. One of the configurations was explored to quantify the effects of design and operating parameters, which include pressure, temperature, and steam-to-carbon ratio in the fuel processor, and fuel utilization in the fuel cell. The second configuration applied the lessons from the study of the first configuration to increase the CHP efficiency. Results from the two configurations allow a quantitative comparison of the design alternatives. The analyses showed that these systems can operate at electrical efficiencies of similar to 46% and combined heat and power efficiencies of similar to 90%. (C) 2013 Elsevier B.V. All rights reserved.