The industry standard for measuring the efficiency of a power generator does not include transmission losses.

However, I have seen people include it in the past as a way of manipulating the numbers. I doubt this is the case with this number. It should be close to 60%

Transmission losses are probably not included, but for reference this new device is only 35% efficient if you cannot use the heat it generates. If your house (or the weather) is already warm enough, you're not going to come out ahead.