How Much Do Home Generators Cost and Are They Worth It?

Whether you’re prone to frequent power outages or just want to be prepared, a home generator is a worthy investment. However, there are many options to consider, from portable generators to solar generators. We’ve already done the research and found the best portable generators , but let’s dig deeper into the role that individual needs and budgets play. We’ve put together this guide to help you with your generator search, answering the question: How much do home generators cost and are they worth it?

The average American has experienced 5.5 hours of power outages in 2022partly due to the bad weather. Although that was less hours than the previous two years, the long-term trend shows that power outages are becoming more commonwhere the increase is due to weather-related disturbances.

While addressing the conditions that cause extreme weather requires systemic solutions, you can keep the lights on and gain some peace of mind with a home generator. Generators come at a price that may make them seem more of a luxury than a necessity.

Consider the cost of a home generator, understand the installation process, and know what to expect from this emergency power source. Then you can make an informed decision about whether you want your home generator to kick in when the lights go out, whether you’re better off with an alternative, or whether you’re more comfortable and prepared to stay in the dark until the outage is over, even if they become more frequent.

Canter Power Systems has been supplying the full line of Generac gas generators and rechargeable backup batteries for 70 years and is now the largest full-service generator installer in the country.

How much does a home generator cost?

The cost of a home generator depends on several factors, from the make and model to the power capacity and features. According to HomeAdvisorThe typical cost for a whole-house generator is between $5,000 and $25,000.

One of the biggest factors in the price of a generator is how much it needs to power, usually measured in kilowatts (kW). According to the United States Energy Information AdministrationThe average American household uses just under 900 kWh per month, about 30 kWh per day. Generators with a capacity of 20 kW are generally considered whole house generators and cost more. If a generator has less than 10 kW of power, it is intended for smaller jobs and costs less.

Another factor that plays a major role in the cost of a generator is the fuel source. Gasoline generators are the most common type of generator and typically cost less than alternatives such as solar battery backups, which store electricity so you can use it when you need it.

You’ll need to factor the cost of fuel into this equation, since you’ll need to refuel the generator to run it. Some home generators run on natural gas, which is typically cheaper than gasoline. Propane is a common fuel source for portable power plants, but less so for whole-home options. Diesel is considered the most efficient generator fuel, although it’s less effective in cold temperatures. These trade-offs and considerations will play a role in your decision.

Generator installation, maintenance and other costs

“The largest cost item by far is the purchase and installation costs of the generator,” said Don WhaleFounder and former President of Direct Energy. Installation costs vary depending on the type of generator you purchase.

With a portable generator, there are no real installation costs. A whole house generator, on the other hand, is a more permanent structure that requires proper setup. Installation costs include labor and electrical work, including circuitry and transfer switches. It may include installing a concrete pad for the generator. According to HomeAdvisor, all of that can cost between $500 and $5,000.

Maintaining a generator will incur a small annual cost. You should also have your generator inspected for the seasons when you are likely to need it the most. This can cost anywhere from $80 to $300.

Then there’s the cost of actually running the generator, which varies by type of generator. Estimates from HomeAdvisor suggest that if you’re running a whole-house generator powered by diesel or propane, you can expect to pay about $200 per day for 20 kW of power. A portable gas generator that puts out 5 kW of power could cost about $100 per day to run, depending on gas prices.

Natural gas, often used for home generators, is usually the least expensive option, but the cost can be high depending on how long you rely on it.

“The cost of running the machine, assuming the fuel is natural gas piped to your home, can be significant,” Whaley said. “But in today’s market, with natural gas fluctuating at or below the price, three dollars per MMBtu (million British thermal units), then there would have to be a prolonged power outage before the costs become significant.”

What are the benefits of a home generator?

Having power at home during an outage isn’t just a matter of convenience, although it certainly makes weathering a storm easier. It’s also about safety and security. “Days-long power outages aren’t just a nuisance. They can be life-threatening,” Whaley explains.

When power outages last for short periods, a generator can prevent the problems that often follow, such as food spoilage. When power outages last longer or are caused by extreme weather, generators can prevent disasters.

When Texas experienced a severe winter storm in 2021, many households were unprepared for the loss of power and experienced freezing temperatures. More than 240 people died as a result of the storm and the resulting power outages, according to the Texas Department of Health and Human Services. Generators can also run your air conditioner during heat waves that knock out the electricity. In these situations, generators can be life-saving purchases.

Is a home generator worth it?

Having a generator available during a power outage can be useful. Depending on the situation, it can even be a lifesaver. However, it also comes with significant costs that some may not be willing or able to afford.

“It’s unlikely that the system will ever pay for itself based on the electricity produced versus the cost of electricity from the grid,” Whaley said. A generator is more of an investment in protection than one from which you can expect a return.

According to Whaley, it’s worth considering your situation and how your household can benefit from a home generator. “Families with young children or elderly parents are the ones for whom generators make the most sense. These are the vulnerable populations and the ones who are least able to adapt to extended power outages,” he explained.

Whether or not it’s worth owning a home generator depends on whether you can afford the upfront costs and ongoing maintenance, and how much risk you and your family are exposed to if you’re without power for an extended period of time. In addition to your budget, consider the support network around you and your access to other essential goods.

Alternatives to a home generator

Generators that power your entire home during a power outage may be too expensive or overkill for some households. Some alternatives can power a room or essential systems in your entire home at a price that better suits your budget.

A portable generator, which is typically designed to power a single room for a limited period of time, typically costs between $500 and $2,000, compared to $5,000 to $18,000 for a whole-house option. There are also critical systems generators, which are designed to support essential systems including heating, lighting and kitchen appliances. You can expect a critical systems generator to cost between $2,000 and $6,300.

These systems typically run on fossil fuels, but solar options are also available. Most solar and battery storage options cost more, especially for higher capacity, but can operate without fossil fuels.

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