In this study, we installed and evaluated a 1.5 kW Solid Oxide Fuel Cell (SOFC) with Micro-CHP (combined heat and power) system as a Distributed Generation (DG) prime mover in a residential application. Both steady state and dynamic operating conditions were evaluated. With the steady state and dynamic performance characteristics of the SOFC CHP system, and the latest capital cost and performance data garnered from the ENE FARM Program (Japan) and ene. field Program (Europe), we carried out an economic analysis taking into account the daily and seasonal energy production, residential utility rates, fiscal incentives by state, and effective photovoltaic (PV) capacity integration. Various operation strategies that focus on 1) reduced energy use, 2) reduced peak demand, 3) PV integration at the residence, and 4) qualifications for fiscal incentive programs are evaluated. From the customer perspective, this study generates a guideline for the user to make decisions regarding SOFC system capacity, operating strategy and CHP configuration, while providing guidance regarding the breakeven costs of SOFC systems under various scenarios in various regions.