The MCHP unit, produced by the Honda Motor Company, uses an internal combustion engine to produce both heat and electric power. This unit is an incredibly quiet (only 47 dBA at 1 meter) long life small engine-generator that has already been installed in over 50,000 homes in Japan. The engine runs on clean natural gas (propane available in April 2009) and can be located in a basement or utility room. This engine produces 1,200 watts of electric power and about 12,000 BTUs per hour of heat for the home.

In addition to being quiet and efficient at generating electric power, the MCHP also has very low pollutant emissions. The engine exhaust passes through a catalytic converter that cleans and cools the combustion products. The low temperature flue gas exhaust from the MCHP can be vented outdoors through inexpensive PVC piping.