The objective of this project was to develop a novel computer based program and prediction method to evaluate the economic feasibility of a 5kW natural gas residential fuel cell (FC). One year's worth of data was collected, analyzed, and projected over a twenty-year project lifespan for the purposes of determining the feasibility of the 5kW unit. The motivation for this feasibility study came from a large number of inquiries made by Salt River Project (SRP) customers in Phoenix, AZ. An investigation was by Arizona State University (ASU) to determine what factors would have to change so the average home owner could afford to purchase a similar unit. The results indicate that the FC purchase cost and FC system efficiency are the most sensitive parameters. Such a unit today is unfeasible to purchase. It is hypothesized that a FC purchase price of $40,000 with a system efficiency of 40 percent will allow for residential market entry.