So why is Jim only using the 1/3 mechanical energy to heat his house?
He could put the radiator in the basement and capture another 3rd,
maybe combine it with a water cooled exhaust.

A variety of reasons that add up to 'don't do this', in my case.

1) I want the big noisy generator away from the house.  A large part
   of this is that if I don't put it by the main power pole, my
   separately-metered (wtf?) well can't get power unless I dig a
   trench and back-wire it from the house.  Not a cheap/easy
   proposition.

2) I only anticipate at most a few weeks' run-time for the entire
   service life of any generator.  (Translation: my lifetime.)
   Anything 'difficult' to reduce fuel consumption is unlikely to
   be even remotely economically viable.  Even changing away from
   electric heat is not viable, given that we're heating entirely
   with our own wood right now.  (I think the furnace has been on
   once, and that only because my wife turned it on.)  The furnace
   is just there for backup heat.

3) The 40kW generator was $400.  I think I'm into it another $700 right
   now for repairs, and I should be mostly done at this point with
   expenditure.

If I were starting from scratch, the house would be designed completely
differently, and one of those Lister thumper diesels driving a 10-12kW
generator and capturing the waste heat would be an extremely interesting
part of the plan.

-- Jim


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