The use of combined heating and power (CHP) systems to produce both electricity and heat is increasing rapidly due to their high potential of reducing primary energy consumption (PEC), cost. and emissions in domestic, commercial, and industrial applications. In addition to producing both electricity and heat, CHP systems can be coupled with vapor compression systems to provide cooling. This paper analyzes a natural gas engine CHP system together with a vapor compression system for different American climate zones. Performance is measured in terms of operational costs, PEC, and carbon dioxide emissions as a percent of a reference building. The objective of this paper is to compare the performance of a CHP system operating 24 h a day with a system that only operates during typical office hours. Furthermore, the system is optimized based on reducing PEC, minimizing costs, and reducing emissions. In addition, the benefits of CHP systems based on the Energy Star program and the Leadership in Energy and Environmental Design (LEED) program are presented. Results show that, in general, it is more beneficial to operate the CHP system during typical office hours than to operate the system 24 h a day. Also, the CHP system performance strongly depends on the location where it is installed. In addition to reductions in cost, primary energy, and emissions, CHP systems can help achieve the Energy Star label for commercial office buildings and help obtain LEED points that go toward achieving LEED certification status. Copyright (C) 2009 John Wiley & Sons, Ltd.