How much does Generator installation cost?

Electric power outages can occur anywhere, and they’re increasing. While the average American home experiences only 8 hours of lost power annually, that’s still double what it was a decade ago. And a growing number of natural disasters (including fires, floods, and storms)—as well as stress on utility companies’ aging infrastructure—are making long-term periods of power loss a more common occurrence.

As a result, some homeowners are installing home standby generators to provide backup power in an emergency, avoiding the danger, discomfort, and inconvenience of an extended power outage.

When you start looking into a built-in generator, you’ll find that costs vary widely. For example, a high-end, battery-powered system that starts up automatically—and provides enough electricity to run heating, air conditioning, lighting, and appliances for days—can cost $35,000 or more, installed. Smaller standby generators cost as little as $2,800. There are many options in between. 

Before deciding on a built-in generator, it’s wise to consult a generator installation specialist—or, at minimum, a licensed electrician. A pro can help you identify the right type of generator based on your home’s power needs, the frequency and duration of power outages in your area, and your budget. 

This guide to the cost of backup generators will help you know how much you can expect to spend.

To learn more about getting through a natural disaster, read Preparing your house for a hurricane and How to survive a house flood. 

Whole-house generator installation costs usually reflect the following expenses:

According to AlltimePower, a New Orleans-based trade organization that promotes home backup generator systems, you’ll typically pay $12,000–27,200 for a permanent, whole-house generator (including installation), plus $160–500 annually for generator maintenance and repairs. Most new generators are under warranty for up to 20 years.

The biggest factor in generator prices is their power output—often referred to as generator size. Because a higher-powered unit is more expensive, buying the right size generator for your home will also be the most cost-effective choice.

Whole-house generator costs also vary by the type of fuel they run on. Here are the typical choices.

If a natural-gas connection is available, these are the most convenient and cost-effective type of generator, at an average installed cost of $2,000–5,500. 

They’re usually installed on a concrete slab in a sound-dampening outdoor enclosure, near where gas and electricity enter the home. A contractor with carpentry and concrete masonry skills may be required to construct the enclosure. A licensed plumber should hook up the unit to the home’s gas line and run a flue to vent carbon monoxide, which normally takes 1–3 hours. (See “Cost of generator installation,” below) 

Where natural gas isn’t available, a liquid propane-fueled generator may be the most convenient, reliable option, at a cost of $500–6,000. 

Installing a propane tank costs $1,500–3,800—if the tank is underground, the price will be toward the higher end. Above-ground tanks should be placed on a concrete pad, which costs $800–1,000. Propane-fueled generators can be housed indoors if equipped with an exhaust flue, which costs about $200 to install.

A new type of generator, powered by lithium-ion batteries, can provide backup electricity during an outage. Home battery backup systems are sustainable and silent, though generally more pricey to install than conventional fossil-fuel powered generators. 

Battery-based systems are available in two forms:

Solar generators. In these systems, a solar panel converts sunlight into direct current (DC), which is stored inside the battery. When an electric utility outage triggers a transfer switch, stored DC power is converted into alternating current (AC), the type of electricity used by home appliances. Solar generator equipment costs $350–5,300, depending on size, number of panels, and battery storage capacity. (At the lowest end, you’d have just enough power to charge a cellphone or laptop.) A complete, whole-house solar generator system costs $20,000–40,000, installed.

Whole-house backup batteries. Instead of a solar panel, other battery systems can store electricity from your local utility’s power supply. When linked to a home’s main electric panel, the battery can run household appliances for a period of hours or days—depending on its storage capacity and amount of power used—in case of an outage. Home backup batteries cost $10,000–20,000, installed.

Costs of whole-house generator installation vary widely depending on the size of the unit, the fuel source, and functionality of your home’s existing electrical system. AlltimePower suggests estimating installation costs at 75% of the price of the generator itself. 

In addition to a licensed electrician (at $50–100 per hour), permanent generator installations may require other professionals, such as a licensed plumber ($45–150 per hour), carpenter ($150–250 per day), and concrete mason ($85–130 per hour). In some cases, the installer will act as a contractor and provide all the tradespeople needed.

Whole-house generators are usually equipped with an automatic transfer switch, which supplies power from the generator to the home’s circuits—via the existing electrical panel—when the utility service fails, then turns the generator off again when service is restored. The total cost of transfer switch installation is typically $500–1,500, including an electrician’s labor and the switch itself.

Here are a few ways to reduce your expenses for generator installation.

How much does it cost to install a whole-home generator?
Expect to pay $7,000–15,000 for the generator, $5,250–11,250 for installation, and $165–485 per year in maintenance and repair costs. Typically, the more electricity a unit generates, the more it costs.

How much is a generator for a 2,000-square-foot house?
For a home this size, you’ll typically need a whole-house generator with a power output of 14 kilowatts. That costs about $6,000–10,000, including equipment and installation.

Is there a tax credit for a whole house generator?
Some solar-powered backup generators may be eligible for tax incentives, and a whole-house generator might be partially deductible if it’s used to power medical equipment. However, you can’t take a renewable-energy tax credit for the cost of most generators, the way you can for solar panels.

Find a generator installation professional in your area.