One of the most obvious early market applications for thermoelectric generators (TEG) is decentralized micro combined heat and power (CHP) installations of 0.5 kWe to 5 kWe based on fuel cell technology. Through the use of TEG technology for waste heat recovery it is possible to increase the electricity production in micro-CHP systems by more than 15%, corresponding to system electrical efficiency increases of some 4 to 5 percentage points. This will make fuel cell-based micro-CHP systems very competitive and profitable and will also open opportunities in a number of other potential business and market segments which are not yet quantified. This paper quantifies a micro-CHP system based on a solid oxide fuel cell (SOFC) and a high-performance TE generator. Based on a 3 kW fuel input, the hybrid SOFC implementation boosts electrical output from 945 W to 1085 W, with 1794 W available for heating purposes.