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The typical cost of a home generator is around $5,000, but prices range from $400 up to $13,000, depending on a few factors. The most significant cost factor is the generator size, as larger generators that can support more square footage usually cost more. You can install an emergency backup generator for between $500 and $2,000 or a partial-home generator for between $2,000 and $6,500. Whole-home generators usually total between $5,000 and $13,000, with some models climbing as high as $18,000.
In most municipalities, you will need a permit to install a permanent home generator, including emergency backup, partial-home, and whole-home generators. A permit for a generator usually costs between $50 and $250, depending on where you live. Your electrician or certified generator installer will usually pull the permit for you—and might be required to do so by your building department—but you’ll be on the hook for the cost of the permit. You should ask your installer before agreeing to any work if they will pull the necessary permits for your project.
Generator size requirements vary wildly among properties, but typical generator sizes are listed below based on home square footage:
1,000 sq ft: 6–9 kW
1,500 sq ft: 7–10 kW
2,000 sq ft: 10–14kW
2,500 sq ft: 12–16kW
3,000 sq ft: 16–20kW+
Unfortunately, home square footage isn’t always a good indicator of generator size requirements. Instead, you should call in a professional to discuss which items in your home you’d like to run via your generator. They can calculate peak and average consumption for those items and then size your generator appropriately for optimal performance.
In most cases, there are no tax credits available for home generators. However, that’s a general statement that applies to federal tax credits, so you might have access to state or local tax incentives. You can check the Database of State Incentives for Renewables & Efficiency (DSIRE) for more information about your area. If you hire a reliable home generator installer, they should also know if there are any state or local perks you can use to reduce your installation costs, including tax breaks and rebates.
Yes, installing a generator usually increases your property value because buyers are getting the added peace of mind knowing they’ll be able to maintain power through blackouts. In most cases, you should see close to a 100% return on investment (ROI). Keep in mind that home generators usually need a permanent foundation, and installing a concrete slab will likely raise your property taxes slightly.