How Much Should a Whole-Home Generator Cost? Budgeting for Emergency Power

Investing in a home generator is one of the best ways to protect your household against unexpected power outages. However, homeowners have several factors to consider that may impact the total cost of a generator.

A whole-home generator can cost up to $17,000, including the unit and labor. A transfer switch that connects the generator to your home wiring will add another $500 to $2,000. Then there are the fuel costs.

Size

Whole-home generators are more expensive than portable generators but they last longer and automatically power essential appliances during a blackout. They also require professional installation of transfer switches, natural gas lines, concrete pads and electrical wiring.

Choosing the right size generator can save money. Homeowners should start by listing the appliances they want to run during a power outage, including refrigerators, heating and cooling systems, security systems and lights. Then, add up the total wattage of each item.

This total will help determine the size generator that’s needed. A professional electrician can calculate the total wattage or homeowners can use online wattage calculators to estimate their needs. To ensure a safe margin of error, homeowners should choose a generator that’s slightly bigger than their total power requirements. For example, if the total running wattage is 1600, consider getting one with 1700 rated and 1800 starting watts. This will provide plenty of power for most essential appliances and leave a little extra for future growth.

Fuel Type

A whole-house generator can be powered by a variety of fuel types. The fuel type you choose will affect the size of generator and cost of installation. Typically, natural gas is the most cost-effective option, but you may not have access to gas lines in your area. Then, you’ll need to consider propane or diesel generators. They cost more upfront, but can be more affordable over the long run.

The transfer switch that connects your generator to your home wiring will also affect your installation costs. You can opt for either a manual or automatic transfer switch, but each will cost differently.

You will also need a place to store the fuel for your generator. A poured concrete pad offers stability and helps prevent water from pooling underneath, which can damage or rust the unit. These pads can cost $50 to $75 per square foot. Larger fossil fuel generators require a larger storage tank, which adds to the overall price.

Permits

Many municipalities and homeowners’ associations require a permit to install whole-home generators. This is because generators emit carbon monoxide and can cause explosions and fires if not installed properly. This is why it’s best to leave this job to a top-rated pro, as they can ensure your new generator follows all safety rules.

Most generators need a permanent resting spot, such as a concrete pad. You can expect to pay between $250 and $500 for this, including site preparation and pouring. A transfer switch is also needed, which typically costs between $800 and $2,000.

A generator may seem like an unnecessary expense to some, but it’s one of the most affordable investments a homeowner can make. Power outages can be dangerous, and they’re becoming more common due to extreme weather conditions and a changing work culture that includes more people who work from home and rely on electric medical equipment.

Installation

A whole-house generator requires a professional installation to ensure safety, especially when working with gas lines and transfer switches. Installing a home backup generator can also cost $500 to $3000 for labor, depending on the size of the generator and its location. Large fossil fuel generators often require a concrete pad, adding to the total installation costs.

In addition to the upfront costs of a home generator, homeowners should expect ongoing maintenance, fuel and service charges. A generator needs to be refilled regularly, and service professionals typically charge $80 to $300 per year for routine maintenance services, including oil changes and testing the generator’s transfer switch.

Getting a generator will protect your home from expensive repairs or damage during power outages. It’s especially important for homeowners who use medical devices that depend on electricity to function. During a power outage, a small portable generator may only be able to run your refrigerator and freezer, but a home generator can keep breathing machines, dialysis equipment, and other critical devices running.