Small distributed generation systems are currently attracting much attenions because of their high energy utilization efficiency. For them, compact and high performance energy conversion devices such as micro gas turbines (μGT) and small fuel cells (FC) have recently been developed. They offer higher electric power conversion efficiency than traditional devices, but their hybrids, e.g., μGT combined with solid oxide fuel cell (SOFC), are expected to achieve even higher efficiency. In this paper, we investigate the effects of cycle design parameters on the performance and feasibility of a 30kW μGT-SOFC hybrid system for apartments and small businesses. As a result, a general design strategy is found that higher SOFC cell temperature and lower turbine inlet temperature should be preferred under some restrictions. The electric power generation efficiency of μGT-SOFC hybrids can reach 65% and 60% for pressurized and atmospheric cycles, respectively.