When spring storms knock your power out, a home generator can be a lifesaver -- keeping your refrigerator running, lights on and home comfortable. With options ranging from portable units to standby systems and even solar-powered alternatives, finding the right generator means balancing your needs with your budget, including operational costs. With a recent CNET survey revealing that 78% of US adults are concerned about rising energy prices, an efficient generator is a smarter investment now than ever.
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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 , partly due to 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.
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 lands between $1,538 to $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.
"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 to $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 around $200 per day for 20kW of power. A portable gas generator providing 5kW of power can cost around $100 per day to run, depending on gas prices.
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.
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 explained.
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 , 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 - (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.
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.
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"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 explained.
Whether owning a home generator is worth it comes down to whether you can afford the up-front 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.
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 to $6,000, compared to $2,000 to $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.
Generators are an excellent way to maintain reliable power during an outage or in areas with little to no grid coverage, including remote worksites where electrical power is needed but unavailable. It’s important to understand the technical specifications of generators before you purchase one for your business to ensure you’re getting enough power for your operations.
Generator set (genset) ratings help you make the best choice when buying a new generator. Different ratings, such as eKW and kVA, help inform buyers about the power capabilities of different generators so they can determine whether a specific model can bear the load needed for their operations.
The eKW generator rating, also written as kWe, is the total generator output after efficiency losses or the loss from mechanical to electrical energy. The generator’s electrical power is generally measured in either watts or kilowatts. It’s essential to understand the eKW of a generator since equipment and appliances directly use this electrical power while the generator is operational. Without the proper amount of electrical power, you may be unable to run all the necessary equipment or appliances for your operations.
The kVA generator rating measures apparent power, including real and reactive power. In simple terms, a kVA for a generator tells you how much power output the machinery is capable of for different operations. Reactive power differs from real power since it’s not consumed and cycles between the load and power source.
The kVA rating indicates power output, meaning the higher the rating, the more power your generator can produce. You can calculate kVA by multiplying the voltage by the amps. You can also convert kVA into eKW by multiplying by the power factor, which differs based on the phase of the generator.
Apart from eKW and kVA, generators are rated using various factors. Standard generator ratings you’ll find in the industry include:
Look at each of these ratings when comparing generators to find the best system for your operations. Some generators will be more suited to your applications than others, so it’s essential to understand the differences between each rating to make the best choice for your business.
When choosing a generator for your applications, you must ensure it has enough capacity to provide power during peak work conditions. There are two methods you can use to determine what generator you need for your business.
Calculating your full load capacity can help you determine the proper generator size to provide enough power for your applications. Follow these steps to calculate the full load capacity:
Using the full load kWs, you can determine the full load capacity of your applications, allowing you to purchase the proper generator to meet the power needs of your business. Calculating full load capacity is an excellent way to ensure you choose the right generator rating, especially if you have more complex work environments that are frequently changing.
If you run a simpler operation, such as a retail store or a business that operates out of a single building, and you use the same amount of energy consistently, you can calculate what size generator you need based on square footage.
Generally, you’ll want to start with 50 kilowatts to power and add 10 kilowatts for every square foot for retail and five kilowatts for commercial applications. For example, if your business is 500 square feet, you would multiply 500 by 5 to get 2,500. Finally, you’d add 50 for 2,550. You’d want to look for a generator with kW ratings at or above 2,500 to ensure you have enough electrical energy to power your business. You can also consult a power systems specialist for professional advice about the best generator for your business.
If you’re looking for an effective power solution for emergencies or remote work, Thompson Power Systems has you covered. We offer new, used, and rental generators to meet the needs of your applications, whether you need a system to keep your business operational during an outage or to sustain power for critical systems.
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