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[–] Morbo ago 

If you're losing all the generated energy to heat (BTUs), then what's the point of having the generator? OP wants to generate electricity. Yes I know a BTU is a unit of energy, but it is specifically a unit of heat energy not electricity and should not be used to describe electrical work capacity.

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[–] pushthis [S] ago 

You are not losing heat.

If a generator works to make a voltage and watts are used in the master bedroom powering a computer tower, t.v. and whatever else,, thoae btu's are sequestered. If the energy is used to charge an electric car then the btu would not be used to heat the home but still valuable.

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[–] Morbo ago 

You will lose energy because you cannot get more energy out than in. Every Watt that comes off that generator has taken energy out of the source. You will need to burn more natural gas to power the generator which will become more difficult to turn when under a load. You may end up with an excess of heat overall, but the true loss will be in the amount of fuel needed to power the highly inefficient system. You'd be better off using less fuel to create the heat and buying your electricity from your electric provider. The economies of scale allow them to price the KwH much better than this Rube Goldberg type system could ever do. There's a reason no one is doing this and it isn't because they didn't think of it yet.