An improved CHP system combining a VCCHP system with an SOFC system for application as a combined CHP system wherein the compressor motor of a heat pump is powered by a portion of the electricity generated by the SOFC, and wherein the thermal output of the heat pump is increased by abstraction of heat from the SOFC exhaust. This integration allows for complementary operation of each type of system, with the benefits of improved overall fuel efficiency for the improved CHP system. The heat pump is further provided with a plurality of flow-reversing valves and an additional heat exchanger, allowing the heat pump system to be reversed and thus to operate as an air conditioning system.