Micro-CHP, or micro combined heat and power, is a technology that generates electricity and heat simultaneously for individual homes or buildings. It works by using a fuel like natural gas to power a system, such as a Stirling engine, to produce both electricity and hot water. Micro-CHP systems typically produce around 1kW of electricity and have a 6:1 ratio of heat to power output. Any excess electricity can be sold back to the grid. While not considered renewable, micro-CHP can reduce carbon emissions and energy costs when properly installed.