In this study, we first consider developing a thermodynamic model of solid oxide fuel cell/gas turbine combined heat and power (SOFC/GT CHP) system under steady-state operation using zero-dimensional approach. Additionally, energetic performance results of the developed model are compared with the literature concerning SOFC/GT hybrid systems for its reliability. Moreover, exergy analysis is carried out based on the developed model to obtain a more efficient system by the determination of irreversibilities. For exergetic performance evaluation, exergy efficiency, exergy output and exergy loss rate of the system are considered as classical criteria. Alternatively, exergetic performance coefficient (EPC) as a new criterion is investigated with regard to main design parameters such as fuel utilization, current density, recuperator effectiveness, compressor pressure ratio and pinch point temperature, aiming at achieving higher exergy output with lower exergy loss in the system. The simulation results of the SOFC/GT CHP system investigated, working at maximum EPC conditions, show that a design based on EPC criterion has considerable advantage in terms of entropy-generation rate. © 2008 International Association for Hydrogen Energy.