The advantages of thermoelectric generator (TEG) are the absence of moving parts, reliability, long service life, the possibility of fully automatic operation without maintenance. At the same time, TEGs also have disadvantages - low efficiency and high cost. In this regard, it is advisable to use them in autonomous installations of small power, as well as in devices intended mainly for heat supply, when the low efficiency of thermal energy conversion into electrical energy does not play a role. It is the latter case that is realized in furnaces that burn biomass. In this paper, we consider the main physical effects due to which the direct conversion of thermal energy into electrical energy occurs in semiconductor thermoelements. The conjugate problem of heat and electric charge transfer with temperature-dependent properties of a semiconductor is reduced to a problem with constant properties. Based on the literature data, the boundary conditions for the TEG were selected, its sizes were optimized, current-voltage characteristics were constructed, and the maximum power and efficiency were determined. Estimates of the cost and economic efficiency of using TEG are made.