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Yes, in most municipalities, you will need a permit to install a permanent home generator, including emergency backup, partial-home, and whole-home models. Because these installations involve significant alterations to your home's electrical system and produce exhaust fumes, local governments often require a permit or inspection for safety purposes. A generator permit typically costs between $50 and $250, depending on your location. Your electrician or certified installer can usually handle the permitting process for you, but you will be responsible for the cost. It's a good practice to confirm with your installer that they will pull all necessary permits before work begins.

A home that is 2,500 square feet will likely need a 20kW to 25kW generator. Consult your local generator installer to confirm the generator size needed to power your home before purchasing a new one. Be sure to consider how much power your necessary devices need to run.

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.

It might seem counterintuitive, but installing a generator transfer switch will save you money in the long run. While you’ll have to pay between $400 and $2,500 to have the transfer switch installed, you’ll recoup that amount later on when you don’t have to pay for expensive repairs to your appliances, devices, and electrical system that may have burned out, overloaded, or stopped working due to a sudden loss of power or an incorrect hook up of a generator to your home.