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The average cost to install a home generator is $5,200, but total costs can range from $500 to $18,000 or more. The final price depends on several factors, including the generator's size, type, brand, fuel source, and the cost of labor and assembly. The generator's size is the most significant cost factor, as units that can power larger homes with higher energy demands cost more.

Cost breakdowns by generator type are typically as follows:

• Portable or Emergency Backup Generators (1kW–7.5kW): $500–$2,000

• Partial-Home Generators (9kW–20kW): $2,000–$6,500

• Whole-House Generators (22kW–48kW): $5,000–$18,000

To ensure you get the right size unit for your needs without overpaying, consider hiring an electrician to calculate the electrical load of your essential appliances. It is also recommended to get at least three quotes from qualified installers to find the best fit for your budget.

It’s usually better to repair your generator if it isn’t working properly, as it will typically be much more affordable and should yield similar results. Generator repairs cost around $300 on average, while installing a new whole-house generator costs around $5,000 on average. The only exception is if you know your generator is reaching the end of its useful life, usually between 30 and 40 years. If you have an older generator, you could face multiple repairs in the coming years, which might mean that a full replacement will be more cost-effective over time.

Most homeowners won't be able to claim a home generator as a tax write-off. However, a whole-house generator may be tax-deductible in certain situations depending on its purpose. For instance, if it's needed to power essential medical equipment, it may qualify as a medical expense deduction. Also, in some cases, businesses can deduct a generator as a business expense if it supports operations. Always consult a tax professional to determine eligibility based on your specific circumstances and the applicable IRS regulations.

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.