If you live in an area that experiences frequent power outages or want to be prepared for outages due to weather conditions, you should invest in a good home generator. You have several options when choosing a generator. You can use a whole house generator or one of the best portable generators on the market. Because the power and price differences between whole-house and portable generators can be significant, the generator you choose will depend on your overall needs and budget. To help you choose which option is right for you, CNET has put together this guide that explains how much a home generator costs and whether it’s worth the investment.
The average American experiences 5.5 hours of power outage in 2022, partly thanks to the bad weather. This is less time than the last two years, but if you look at the long-term trends: Power outages are becoming more commonThe increase was due to weather-related power outages.
Addressing the conditions that cause extreme weather requires a systematic solution, but a home generator can give you some peace of mind while keeping the lights on. Generators come with costs that can make them seem more like a luxury than a necessity.
Consider the cost of a home generator, understand the installation process, and find out what you can expect from this backup power source. You can then make an informed decision about whether to run your home generator when the lights are out, if an alternative is more suitable or if you are comfortable and prepared to remain in the dark until the outage passes. It’s becoming more and more common.
Offering Generac’s full line of gas-powered generators and rechargeable backup batteries, Canter Power Systems has been providing backup power options for 70 years and is currently the largest full-service generator installer in the United States.
How much does a home generator cost?
The cost of a home generator depends on many factors, from the make and model to 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 determining the price of a generator is its power supply, usually measured in kilowatts (kW). According to U.S. Energy Information Administration, the average American household uses 900 kWh per month, or about 30 kWh per day. Generators with a capacity of 20 kW are generally considered whole house generators and cost more. If the generator’s power is less than 10 kW, it is suitable for small jobs and is inexpensive.
Another factor that plays a significant role in the cost of a generator is its fuel source. Gasoline-powered generators are the most common type of generator and are generally less expensive than alternatives, such as solar backups, which store electricity for use when needed.
Since you need to fuel the generator to use it, you need to factor the cost of the fuel itself into this equation. Some home generators run on natural gas, which is generally cheaper than gasoline. Propane is a common fuel source for portable power plants and less commonly used for whole-house options. Diesel is considered the most efficient generator fuel, although it is less effective in cold temperatures. These pros and cons and considerations will influence your decision.
Generator installation, maintenance and other costs
“By far the biggest cost is purchasing and installing a generator.” Don Whaley, founder and former chairman of Direct Energy. Installation costs vary depending on the type of generator you purchase.
With a portable generator, there are no actual installation costs. In contrast, whole house generators are more permanent structures that require proper setup. Installation costs include labor and electrical work, including circuits and transfer switches. This may include installing a concrete pad for the generator. All of this costs between $500 and $5,000, according to HomeAdvisor.
Maintaining a generator costs less per year. You should also have your generator inspected before you need it most. It can cost anywhere from $80 to $300.
Then there are the costs of actually running the generator, which varies depending on the type of generator. If you run a full-home generator that runs on diesel or propane, you can expect to pay about $200 per day for 20 kW of power, according to estimates from HomeAdvisor. A portable gas generator providing 5kW of power costs about $100 per day to run, depending on gas prices.
Installation costs, including any necessary concrete work, are part of the total cost.
Natural gas, commonly used in whole-home generators, tends to be the cheapest option, but costs may increase depending on how long you rely on it.
“Assuming the fuel is natural gas piped into your home, the cost of running the machine can be significant,” Whaley said. “However, in the current market, natural gas prices are hovering below 2,000 won. $3 per MMBtu (metric million British thermal units), the outage would need to be extended for those costs to become significant.”
What are the advantages of a home generator?
Keeping your home powered during a power outage isn’t just about convenience. Of course, it also makes weathering the storm easier. It’s also about safety and security. “Power outages lasting several days are not only inconvenient, they can be life-threatening,” Whaley explained.
In the event of a short-term power outage, a generator can prevent the hassles that often follow, such as food spoilage. In the event of a prolonged power outage or extreme weather event, using a generator can help prevent disaster.
When severe winter storms hit Texas in 2021, many households were unprepared for power outages and experienced freezing temperatures. More than 240 people were reported to have died due to the typhoon and power outage. Texas Department of Health and Human Services. A generator can keep your air conditioner running even during heat waves that knock out electricity. In these situations, a generator can be a life-saving purchase.
Are home generators worth it?
Having a home generator during a power outage can be convenient or potentially life-saving depending on the situation, but it can be a significant cost that some are unwilling or unable to pay.
“It is highly unlikely that the system will pay for itself based on the cost of electricity produced versus the cost of electricity on the grid,” Whaley said. Generators are more of an investment in protection than something you can expect to return.
According to Whaley, it’s worth considering your situation and how your household could benefit from a home generator. “Families with young children or elderly parents are the families for whom generators are best suited. These are vulnerable sections of the population and the least adapted to prolonged power outages,” he explained.
Whether it’s worth owning a home generator will depend on whether you can afford the initial cost and ongoing maintenance costs, and how much risk you and your family would be in the event of an extended power outage. Consider your budget, as well as your support network and access to other essential items.
Backup batteries are a relatively new alternative to home generators.
Alternatives to Home Generators
A generator to power the entire house during a power outage may be too expensive or redundant for some households. Some alternatives can power rooms or essential systems throughout your home at a cost that better suits your budget.
Typically designed to power a single room for a limited period of time, portable generators typically cost $500 to $2,000, compared to $5,000 to $18,000 for whole-house options. There are also critical system generators that support essential systems such as heat, 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-powered options are also available. Most solar and battery storage options can operate without fossil fuels, although they cost more, especially at higher capacities.
Frequently Asked Questions
How much does a home generator cost?
The cost of a home generator varies depending on its features, capacity, fuel source, and other variables. Typically, you can expect a home generator to cost between $5,000 and $25,000. You’ll also have to pay for fuel, maintenance, and installation, which can make your costs even higher.
Need to back up your entire home?
No need for backup power throughout your home. You can use a home generator to back up essential systems like electricity and appliances, or you can place the generator in one or two main rooms of your home. If you choose to back up only a portion of your home, the capacity required for your generator will generally be lower. This means that the cost of purchasing and running a generator will likely be lower.
