Home Generator Cost Guide (2026)
Go Back To Previous PageHow Much Does a House Generator Cost?
The typical upfront cost for a home generator ranges from about $12,000 to $25,000, with annual maintenance and repair expenses between $200 and $600. These are average estimates; actual costs can be higher or lower depending on the generator type and installation specifics.
The price of a house generator varies widely based on factors such as the generator type, power capacity, installation needs, and extra features. Below is a detailed overview of the costs associated with purchasing and installing a home generator.
Cost of Generators by Type
The most obvious expense is the generator itself. Generally, larger generators are more costly. Here, “bigger” refers not to physical size but to capacity and power. Generator power is typically measured in “kilowatt-hours” (kWh). Common power ratings for whole-house generators include 12kWh, 16kWh, and 20kWh models.
It’s crucial to select a generator that appropriately matches your power needs; choosing one that is too small can lead to overuse and potential damage. Additionally, costs vary by generator type, including gasoline, natural gas, diesel, liquid propane, and solar-powered models.
1. Gasoline Generators
Gasoline generators are typically the most affordable option because they are widely available and well-known. Small portable models typically cost around $500, while larger models capable of powering a medium-sized home range from $3,000 to $4,000. Although gasoline is inexpensive and readily available, it has a limited shelf life and is less efficient than some other fuels.
2. Natural Gas Generators
While natural gas generators tend to be more costly, they offer certain benefits such as the ability to connect directly to the city’s gas grid. Their prices typically range from $2,000 to $6,000, depending on capacity.
3. Diesel Generators
Diesel generators are typically more powerful and a common choice for supplying power to an entire house. They can cost up to $15,000 but typically range from $5,000 to $10,000. If you require a significant amount of power, diesel engines are usually more cost-effective than gasoline or natural gas generators.
4. Propane Generators
Propane generators fall between natural gas and diesel models and typically cost $2,000 to $6,000. They tend to be fuel-efficient, although propane is more costly than gasoline. While propane can be very dangerous if improperly stored, it has a long shelf life when stored correctly.
5. Solar Generators
Solar generators are the latest development in generator technology and tend to be the most expensive. A solar generator with enough battery capacity to power a medium-sized house can range from $10,000 to $20,000. While cheaper options are available, costing around $1,000, these models generally lack the power to run an entire home.
Generator Installation Cost
The typical cost to install a generator is approximately $1,500. However, installing a whole-house generator can vary significantly, ranging from about $500 to $5,000 depending on factors such as your total energy use, generator size, and fuel type. Remember, this expense is in addition to the generator’s price. A common guideline is that installation costs are roughly half the generator’s price.
Whole-home generators are permanent fixtures that must be installed on your property, requiring connection to existing electrical wiring or gas lines based on the model. Although DIY installation is possible, it’s generally not advisable unless you have extensive experience with home electrical systems.
Hiring a professional, despite the higher initial cost, is the safest option. Installation costs are typically assessed on a project basis and can be influenced by several factors, including site preparation (such as concrete pads), electrical system upgrades, utility line connections, materials and equipment required, wiring updates, fuel tank connections, and a power transfer switch.
Also, if you plan to use a home generator, it must be inspected to ensure compliance with the National Electric Code, and a permit costing around $250 will be required.
Generator Maintenance and Upkeep Costs
The typical cost of a whole-house generator is approximately $400. Common maintenance issues include battery failures, broken spark plugs, breaker problems, gauge malfunctions, coolant leaks, faulty fuel injectors, and clogged carburetors.
Additionally, it’s important to consider the generator’s operating costs. Since generators are mainly for backup power, you usually won’t pay much in ongoing costs unless experiencing a prolonged power outage. Operating expenses depend on your household’s electricity needs.
For a natural gas generator, the average cost is about $3 to $5 per hour, varying by state. Running it for 12 hours could cost roughly $36 to $60. An equivalent-sized propane generator might cost between $6 to $10 per hour. Solar-powered generators offer an advantage here because sunlight is free, eliminating fuel costs.
However, they require significant maintenance and upkeep because solar panels are not yet as efficient as other energy sources.
Generator Cost Bottom Line
The cost of a house generator varies significantly depending on the type, power requirements, and installation process. Portable generators are a more affordable option for short-term outages, while standby generators offer a more dependable, automatic backup but come with higher initial and installation costs.
Since purchasing and installing a generator, especially a whole-house model, can be costly, it’s essential to evaluate whether it’s a worthwhile investment. For some, the expense isn’t justified, particularly if they live in areas with low outage risk. Conversely, if being prepared and investing in reliability are important to you, the investment is definitely worth considering.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
