Nobody wants to deal with a power outage. Aside from the aggravation of not having access to the internet, it can also cause serious problems like spoiling food, or extreme temperatures during summer and winter. Picking up a home generator can make a big difference, but with so many models out there it can be difficult to know which one is right for you. From solar-powered to portable units, there is an option that suits everyone.
Understanding the costs, installation requirements and benefits will help you decide if a generator fits your home setup and lifestyle. This guide covers everything you need to make an informed decision about adding this backup power source to your home.
The average American faced 5.5 hours of outages in 2022, partly caused by severe weather. While that’s an improvement from previous years, the long-term trend shows outages are becoming more common, particularly weather-related ones.
Though addressing extreme weather conditions requires broader solutions, a home generator will bring you immediate peace of mind when the power goes out. However, generators are a big investment that might seem more of a luxury than a necessity for some households.
Consider the generator costs, installation processes and what to expect from this backup power source. Then you can make an informed decision as to whether you want a home generator to kick on when the lights go out. Because maybe you’re better suited for an alternative or are comfortable and prepared to remain in the dark until an outage passes, even as they become more common.
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How much does a home generator cost?
The cost of a home generator will depend on several factors, from its make and model to its power capacity and features. According to HomeAdvisor, the typical cost of a whole-home generator so far in 2025 lands between $1,538 and $8,818.
One of the biggest factors in the price of a generator is how much it will have to power, typically measured in kilowatts. According to the US Energy Information Administration, the average American household uses just short of 900 kilowatt-hours per month, about 30kWh per day. Typically, generators with 20kW of capacity are considered whole-home generators and cost more. If a generator has less than 10kW of power, it’s meant for smaller jobs and will cost less.
Another factor that plays a significant role in the cost of a generator is the fuel source. Gasoline-powered generators are the most common type of generator and typically cost less than alternatives like solar battery backups, which store electricity for you to use when you need it.
You will have to factor the cost of the fuel itself into this equation, as you’ll need to fuel the generator to use it. Some home generators run on natural gas, which is typically cheaper than gasoline. Propane is a common fuel source for portable power stations, less so for whole-home options. Diesel is considered to be the most efficient generator fuel, although it is less effective in cold temperatures. These trade-offs and considerations will play into your decision.
Generator installation, maintenance and other costs
“The largest expense by far is the cost of purchasing and installing the generator,” according to Don Whaley, founder and former president of Direct Energy. Installation costs will vary by the type of generator you purchase.
With a portable generator, there is no real installation cost. A whole home generator, by contrast, is a more permanent structure that requires proper setup. Installation costs include labor and electrical work including circuitry and transfer switches. It may include installing a concrete pad for the generator. All that can cost between $1,500 and $5,000, according to HomeAdvisor.
Maintaining a generator carries a small annual cost. You should also get your generator inspected before seasons when you’re most likely to need it. This can cost as much as $80 to $300.
Then there is the cost of actually running a generator, which varies by type of generator. Estimates from HomeAdvisor suggest that if you are operating a whole home generator that is powered using diesel or propane, you can expect to pay about $200 per day for 20kW of power. A portable gas generator providing 5kW of power can cost about $100 a day to run, depending on gas prices.
Installation costs, including any needed concrete work, is part of the total cost.
Natural gas, which is commonly used for whole home generators, tends to be the most affordable option, although it can also rack up costs, depending on how long you have to depend on it.
“The cost of running the machine, assuming the fuel is natural gas piped to your home, can be significant,” Whaley said. “But in the current market, with natural gas hovering at or below $3 per MMBtu [metric million British thermal unit], you’d have to have an extended outage for that cost to become significant.” The cost is now about $4 per MMBtu.
What are the benefits of a home generator?
Having power at home through an outage isn’t just about convenience, although it certainly makes riding out a storm easier. It’s also about safety and security. “Outages lasting for days aren’t just inconvenient. They can be life-threatening,” Whaley said.
When power outages strike for short periods, a generator can prevent the hassles that often follow, like food spoiling. When outages are longer or the result of extreme weather events, generators can prevent disasters.
When Texas experienced a severe winter storm in 2021, many households were unprepared for the loss of power and experienced freezing cold temperatures. More than 240 people died as a result of the storm and the resulting power outages, according to the Texas Department of Health and Human Services. Generators can also keep your air conditioner running during heat waves that knock out electricity. In these situations, generators can be life-saving purchases.
The map below shows data from the US Energy Information Administration about the average number of power outages per year the average utility customer in each state had from 2018-2022 (using all reporting methods). We also looked at the average total duration of outages per year in hours. Generally, states along the coast and those in the Southeast had the most and longest outages.
Is a home generator worth it?
Having a home generator during a power outage can be convenient or potentially life-saving, depending on the situation, but it does carry a significant cost that some might not be willing or able to pay.
“It’s unlikely that the system will ever pay for itself based on electricity produced versus the cost of electricity from the grid,” Whaley said. A generator is more an investment in protection than one that you may expect a return on.
According to Whaley, it’s worth considering your situation and how your household may benefit from a home generator. “Families with small children or elderly parents are the ones for whom generators make the most sense. These are the vulnerable segments of the population and those least adaptable to extended outages,” he said.
Whether owning a home generator is worth it comes down to whether you can afford the upfront cost and ongoing maintenance, and how at-risk you and your family might be if you are without power for an extended period. Alongside your budget, take into account the support network around you and your access to other essential goods.
Backup batteries are a relatively new alternative to home generators.
Alternatives to a home generator
Generators that keep your whole home powered in an outage may be too costly or overkill for some households. Some alternatives can power a room or essential systems throughout your home at a cost that may better fit your budget.
A portable generator, typically designed to provide power to a single room for a limited period, typically costs between $200 and $6,000, compared to $2,000 and $20,000 for a whole home option. There are also critical systems generators, which are meant to support essential systems including heat, lighting and kitchen appliances. You can expect a critical systems generator to cost $4,000 to $5,500.
These systems typically run on fossil fuel sources, but there are solar options available, as well. Most solar and battery storage options cost more, especially for higher capacity, but can operate without fossil fuels. It’s worth considering, especially with many Americans complaining of increasingly high energy bills.
Home generator FAQs
How much does a home generator cost?
The cost of a home generator varies depending on its features, capacity and fuel source, among other things. In general, you can expect a home generator to run between $1,500 and $9,000 — which is a lot less than they used to be. You’ll also need to pay for fuel, maintenance and installation, which can push the cost higher.
Do I need to back up my whole home?
You don’t need to have backup power for your entire home. You can use a home generator to back up essential systems like electricity or appliances or have a generator for one or two key rooms within your home. Choosing to only back up part of your home will typically lower the capacity needed for your generator, meaning it will likely cost less to purchase and run the generator.
How big of a home generator do I need?
With power outages becoming increasingly common, ensuring your home generator doesn’t fall short is more important than ever. To identify the size of the home generator you’ll need, start with an online calculator and speak with generator company representatives to understand their catalog. After that, you can make an informed final decision, making sure to take your budget into account.
