Fuel cell systems(FCS) have a financial and environmental advantage by providing electricity at a high efficiency and useful heat. For use in a residence, a polymer electrolyte fuel cell system(PEFCS) with a battery pack and a hot water storage tank has been modelled and simulated. The system is operated without connection to grid line. Its electric conversion efficiency and heat recovery performance are highly dependent on operation strategies and also on the seasonal thermal and electric load pattern. The output of the fuel cell is controlled stepwise as a function of the state of the battery and/or the storage water tank. In this study various operation strategies for cogeneration fuel cell systems are investigated. Average fuel saving rates at different seasons are calculated to find proper load management strategy. The scheme can be used to determine the optimal operating strategies of PEFCS for residential and building applications.