Are home generators worth your money?

A home generator can provide peace of mind and backup power for essentials when an unexpected outage occurs. From keeping your refrigerator running during a storm to maintaining comfort in your home, generators come in several forms:portablestandby and even solar powered – tailored to different needs and budgets. As you explore your options, understanding the costs, installation requirements and benefits can help you decide whether a generator suits your lifestyle and home situation. This guide covers the essentials to help you weigh the pros and cons of adding a generator to your home.

The average American experiences 5.5 hours of outage in 2022partly due to the storm. These are fewer hours than the previous two years, but the long-term trend shows this Disruptions are becoming more and more commonwith the increase being caused by weather-related disruptions.

Addressing the conditions that cause extreme weather requires systemic solutions, but you can keep the lights on and get a little peace of mind with a home generator. But generators come at a cost that makes them seem like a luxury rather than a necessity.

Consider the cost of a home generator, understand the installation process, and know what to expect from this backup power source. Then you can make an informed decision about whether you want a home generator to kick on when the lights go out. Because you may be better suited to an alternative or feel comfortable and willing to stay in the dark until an outage passes, even if it happens more often.

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 Home advisorthe typical cost of 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. 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 typically considered whole-house generators and cost more. If a generator has less than 10 kW of power, it is intended for smaller jobs and will cost less.

Another factor that plays an important 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 backup batteries, which store electricity for you to use when you need it.

You will need to factor the cost of the fuel itself into this equation, as you will need to fuel the generator in order to use it. Some home generators run on natural gas, which is usually cheaper than gasoline. Propane is a common fuel source for portable power stations, but less so for whole-home installations. Diesel is considered the most efficient generator fuel, although it is less effective at low temperatures. These tradeoffs and considerations will play a role in your decision.

Generator installation, maintenance and other costs

“By far the largest expense item is the cost of purchasing and installing the generator,” he said Don Whalefounder and former president of Direct Energy. Installation costs depend 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 installation. Installation costs include labor and electrical work, including circuits and transfer switches. It may include installing a concrete pad for the generator. All of that can cost between $500 and $5,000, according to HomeAdvisor.

Maintaining a generator involves small annual costs. You should also have your generator inspected before the seasons when you are most likely to need it. This can cost up to $80 to $300.

Then there are the costs of actually running a generator, which varies depending on the type of generator. Estimates from HomeAdvisor suggest that if you use a whole-house generator powered by diesel or propane, you can pay about $200 per day for 20 kW of power. A portable gas generator that provides 5 kW of power can cost about $100 per day, depending on gas prices.

Natural gas, which is often used for whole-house generators, is typically the most affordable option, although it can also come at a cost depending on how long you need to 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 floating at or below the cap three dollars per MMBtu (metric million British thermal units), you would have to have a longer outage before those costs would become significant.”

What are the benefits of a home generator?

Having power at home during an outage isn’t just about convenience, but it does make it easier to weather a storm. It is also about safety and security. “Days-long outages are not only inconvenient, they can also be life-threatening,” Whaley explains.

When power goes out for short periods, a generator can prevent the problems that often follow, such as food spoiling. When outages last longer or are the result of extreme weather conditions, generators can prevent disasters.

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

The map below shows U.S. Energy Information Administration data on the number of annual power outages the average utility customer in each state averaged between 2018 and 2022 (based on all reporting methods). We also looked at the average total outage duration per year, in hours. Overall, states along the coast and those in the Southeast had the most and longest outages.

Is a home generator worth it?

Having a home generator during a power outage can be useful or even life-saving depending on the situation, but comes with significant costs that some may not want or be able to afford.

“It is 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 an investment from which you can expect a return.

According to Whaley, it’s worth considering your situation and how your household could benefit from a home generator. “Families with small children or elderly parents are the ones for whom generators make the most sense. These are the vulnerable parts of the population and those least able to adapt to long-term outages,” he explained.

Whether owning a home generator is worth it depends on whether you can afford the initial costs and ongoing maintenance, and how much of a risk it poses to you and your family if you are 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 ensure that your entire house is supplied with power in the event of an outage may be too expensive or cost too much money for some households. Some alternatives can power a room or essential systems throughout your home at a price that may better suit your budget.

A portable generator, typically designed to provide power to 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 intended to support essential systems including heating, lighting and kitchen appliances. You can expect a critical systems generator to cost $2,000 to $6,300.

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

Frequently asked questions about the home generator