Fuel cell technology has reached commercialisation of fuel cells in application areas such as residential power systems, automobile engines and driving of industrial manufacturing processes. This thesis gives an overview of the current state of fuel cell-based technology research and development, introduces a μCHP system sizing strategy and proposes methods of improving on the implementation of residential fuel cell-based μCHP technology. The three methods of controlling residential μCHP systems discussed in this thesis project are heat-led, electricity-led and cost-minimizing control. Simulations of a typical HT PEMFC -based residential μCHP unit are conducted using these control strategies. A model of a residential μCHP system is formulated upon which these simulated tests are conducted. From these simulations, equations to model the costs of running a fuel-cell based μCHP system are proposed. Having developed equations to quantify the running costs of the proposed μCHP system a method for determining the ideal size of a μCHP system is developed. A sizing technique based on industrial CHP sizing practices is developed in which the running costs and capital costs of the residential μCHP system are utilised to determine the optimal size of the system. Residential thermal and electrical load profile data of a typical Danish household are used. Having simulated the system a practical implementation of the power electronics interface between the fuel cell and household grid is done. Two topologies are proposed for the power electronics interface a three-stage topology and a two-stage topology. The efficiencies of the overall systems of both topologies are determined. The system is connected to the grid so the output of each system is phase-shifted and DC injection, harmonic distortion, voltage range and frequency range are determined for both systems to determine compliance with grid standards. Deviations between simulated results and experimental results are recorded and discussed and relevant conclusions are drawn from these.