Self-powered heating equipment has the potential for high overall energy efficiency and can provide an effective means of providing on site power and energy security in residential homes. It is also attractive for remote communities where connection to the grid is not cost effective. Self-powered residential heating systems operate entirely on fuel combustion and do not need externally generated electricity. Excess power can be provided for other electrical loads. To realize this concept, one must develop a reliable and low maintenance means of generating electricity and integrate it into fuel-fired heating equipment. In the present work, a self-powered residential heating system was developed using thermoelectric power generation technology. A thermoelectric module with a power generation capacity of 550W was integrated into a fuel-fired furnace. The thermoelectric module has a radial configuration that fits well with the heating equipment. The electricity generated is adequate to power all electrical components for a residential central heating system. The performance of the thermoelectric module was examined under various operating conditions. The effects of heat transfer conditions were studied in order to maximize electric power output. A mathematical model was established and used to look into the influence of heat transfer coefficients and other parameters on electric power output and efficiency.