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First Nice idea, I know how much time you spent on it thinking and discussing. Good to hear that people are thinking of alternate energy sources.
Now coming back to your SELF SUSTAINED QUOTE. You are directly violating the first law of THERMODYNAMICS. Energy can neither be created nor destroyed. The stuff that you are talking about requires efficiency of more than a 100% which is not possible in this world considering all the losses. Also you are considering powering a home with Load requirement of 4KVA the alternator will not be able to provide enough juice to run the motor by it self How can it fulfil the 4KVA load of a house.
Now if you are using batteries to run the Load of the house then What is the need of putting an MOTOR and an ALTERNATOR in the mix. A 4KVA inverter would be a better option.
In petrol generators the Fuel energy is converted to electrical energy.
Last but not the least. THERE IS NO SUCH THING AS FREE ENERGY.