The Cost of Installing a Whole Home Generator: Is It Worth It?

As our winter weather becomes harsher and the summer power grid becomes stressed during heat waves, more people are experiencing regular power outages. If you are concerned about being left in the dark for days, then a whole home generator is an investment worth considering for peace of mind. 

Most homeowners who are looking to install a home generator put cost as a major deciding factor. Home standby generator installation cost varies depending on the type you choose, the size of your home, and other factors that we will discuss in this blog so you can decide for yourself.

What You Need to Know:

• The average installation cost of a whole house generator is from $18,000 to $28,000.
• Generators start automatically, run on natural gas or propane, and can power your entire home.
• Cost varies based on size, fuel type, existing gas lines, labor, and permits.
• A well-maintained unit can last 15 to 20 years.
• It is a long-term investment that adds comfort, safety, and home value.

What is a Whole Home Generator or Standby Generator?

A whole home generator is a permanently installed backup power system that kicks on automatically when the electricity goes out. Also known as standby generators or backup generators, they run on natural gas or propane and are designed to keep your home fully powered through extended outages.

Unlike portable generators that you haul out and set up manually, standby generators are always ready. They are built with longevity in mind, making them a long-term investment for your home.

Related: 10 Situations Where a Home Generator Comes in Handy

How Does a Whole Home Generator Work?

Whole home generators have two main components: 

• An outdoor generator unit that produces power from natural gas or propane.  
• An indoor control panel with a transfer switch that disconnects your home from the utility line while the generator is running. This prevents back-feeding, which protects both your home and utility workers.

In normal circumstances the generator is idle, but when the power goes out it automatically turns on and transfers power from the generator to your home’s electrical system. After the electricity comes back on, the generator shuts off and returns to standby mode.

This seamless transition ensures that you never have to worry about your critical home systems going dark.

What Are the Advantages of a Whole Home Generator?

While a portable generator can provide basic power to your home when the electricity goes out, standby generators have some distinct advantages that make them a smart long-term investment:

• No fuel storage – since a home generator runs on natural gas or liquid propane (LP), there is no need to store gasoline (and you avoid the dangers that can bring)
• No extension cords – since a standby generator is permanently attached to your home there is no need to spend time setting it up or use numerous extension cords.
• Fully automatic – a whole house generator starts and powers your house within seconds after an outage – even when you aren’t home. No need to stumble around in the dark.
• Increased home value – home improvements that bring convenience and safety are good for you and for buyers when you go to sell your home.
• Protect your home — loss of heating, frozen pipes, and power surges can cause damage to your home during a power outage. Keeping your electricity even when you are away from home protects you from expensive damage costs.

Additional Reading: 10 Valuable Advantages of Whole Home Generators

What Factors Affect the Cost of Installing a Whole Home Generator?

Backup generator installation costs can differ for each home as they are determined by multiple variables. Below we will outline the factors that influence how much a home generator installation will cost and what to look for when you shop.

1. Generator Size

The size of a home generator significantly affects the cost of a whole home generator. Here is a general breakdown:

• Smaller generators are generally cheaper and are ideal for powering basic appliances or for providing backup power to a single circuit in your home.
• Larger generators can power an entire house during an outage and typically have additional features that come at a higher price point. 

Regardless of the size you choose, be sure to factor in installation costs, fuel usage, and maintenance fees when comparing prices.

2. Type of Fuel 

Natural gas is the main fuel type that Jacobs Heating & Air Conditioning installs. Key fuel type considerations include:

• Natural gas can be cheaper to install if you already have a gas line on your property. 
• Propane may have higher upfront costs due to the installation of a propane storage tank.

Be sure to consider the total cost of ownership when choosing the type of fuel for your generator.

3. Brand & Model

You should take into account the variety of features offered by the particular home generator brand and model including the maintenance costs associated with it. Different brands have different strengths and warranties that may benefit the way you use your generator. Researching those thoroughly can save you money in the long run. 

Jacobs installs Honeywell Powered by Generac models due to their reliability, warranties, and features.

4. Installation Requirements

The installation requirements for the generator can impact the cost. For instance: 

• You may need to install a dedicated gas line for your generator or a propane tank, adding to the installation cost.
• The electrical work required to set up your new generator varies depending on your home’s existing wiring and systems. 
• If modifications are needed or additional work is required, this will result in higher costs compared to having a plug-and-play system already in place.

For more information on gas line requirements, visit our Gas Piping Services page.

5. Permitting and Inspection 

Depending on where you live, you may need to obtain permits and inspections before installing a generator. Some cities charge for permits which could add to the total installation cost of your home generator. Your installer should be familiar with local code requirements and pull the necessary permits on your behalf.

6. Labor 

The cost of labor for the installation of a home generator can vary greatly depending on several factors:

• The complexity of the project and the contractor you choose. 
• Whether the contractor charges by the hour or a flat rate for installation.
• More experienced contractors will be able to perform the job more efficiently, saving you time and money in the long run.
• You will also need an experienced electrician who knows the local code for installing a whole home generator.

7. Additional Features & Accessories

Many home generator systems come with additional features that can be added to the installation such as:

• Automatic transfer switches: Designed to detect power outages and automatically start up your generator when it detects one. This adds convenience, but will also add to the overall installation cost.
• Remote monitoring capabilities: Allow you to manage and monitor your home generator from afar using a mobile device or computer.

Whole Home Generator vs. Portable Generator: Which Is Right for You?

Not sure which type of generator fits your needs? Here is a quick comparison:

Whole Home Standby Generator

• Permanently installed outside your home, powered by natural gas or liquid propane.
• Starts automatically when the power goes out, even if you are not home.
• Powers your entire home, including HVAC, refrigerator, and lights.
• No gasoline storage or manual setup required.
• Average installation cost of a whole house generator ranges from $18,000 to $28,000 or more depending on size and complexity.

Portable Generator

• Can be moved and used for temporary backup power during emergencies.
• Typically runs on gasoline and comes in varying wattage sizes.
• Requires manual setup, regular periodic maintenance, refueling, and produces carbon monoxide, which means they must be used outdoors only.
• Lower upfront cost, with entry-level models range from $400 to $1,000, depending on features such as battery reserve capacity and wattage output.
• Best suited for occasional or short-term use like camping or outdoor events.

Bottom Line

A whole home standby generator is the better choice if you want reliable, automatic protection for your home and family during extended outages. A portable generator works well for temporary or recreational use where a smaller power supply is all you need.

The right choice depends on your home and your needs. Our team can walk you through the options and help you find the right fit for your budget and lifestyle.

Frequently Asked Questions

How much does installing a whole home generator cost with an existing gas line?

The cost of installing a standby generator will vary depending on many different factors, such as the size of your home, the type of home generator system you choose, and the type of fuel source. If your home does not have an existing gas line, then you will need to get in touch with NW Natural to set up installation, which is something we can help facilitate. Having an existing gas line already on your property can lower your overall installation cost since you avoid the expense of running a new line.

How much maintenance is required for a whole-home generator?

Neglecting generator maintenance can mean the difference between a powered home during an outage and being left in the dark. You should perform routine checks, replace the oil, and install new filters at regular intervals. It is recommended that you have your unit serviced every 6 months.

Learn more about our Home Generator Maintenance options.

How much do whole home generator repairs typically cost?

It depends on the repair needed, but our ballpark range is $300 to $1,000. Regular maintenance is the best way to avoid unexpected repair costs.

How long does a whole home generator typically last?

If you take good care of your home generator with regularly scheduled maintenance, it should last between 25,000 to 30,000 hours, or up to 15 to 20 years.

Will a whole home generator increase the value of my home?

Yes, a whole home generator can increase the value of your home. A generator is generally considered an upgrade to a property, and buyers are often willing to pay a premium for the added security and convenience it provides.

What size generator do I need for my home?

The right size depends on how much of your home you want to power during an outage. Smaller generators (around 10 to 16 kW) can handle essential circuits like lighting, refrigerator, and a furnace. Larger whole-home generators (20 kW and up) can power everything including central air conditioning. Our team can help you calculate your home’s power needs and recommend the right size for your situation.

Do I need a permit to install a whole home generator in Portland?

Yes, most generator installations in Portland require permits from the city and an inspection once the work is complete. Your installation contractor should pull all required permits and coordinate inspections on your behalf. 

Can a whole home generator power my HVAC system?

Yes, a properly sized standby generator can power your HVAC system, including your furnace, heat pump, or air conditioner. Keeping your heating and cooling running during an outage is especially important in the Pacific Northwest, where winter storms can knock out power for days.