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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.
To reduce AC startup power for a whole-house generator, install a soft start kit or hard start capacitor, which lowers the initial surge by gradually ramping up the compressor. Using a smart load manager can also help by staggering startup loads, preventing a system overload and future costly repairs.
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
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.
DIY is possible for basic setups. Professional installation ensures safe and proper electrical connections.
Homeowners can often access federal tax credits, such as the Investment Tax Credit (ITC), which covers a percentage of installation costs. Many states and utilities offer additional rebates, grants, or performance-based incentives. These programs can significantly lower your upfront investment. Check the Database of State Incentives for Renewables and Efficiency (DSIRE) or contact your local energy office for current offers.
The Lodge Grass, MT homeowners’ guide to generator installs
From average costs to expert advice, get all the answers you need to get your job done.
Natural gas generators are whole-home standby generators that are connected to your home’s natural gas line. The average cost for a natural gas generator is $12,000.
Generators should give you peace of mind, but you’ll only get that if your installer knows what they’re doing. Learn how to hire a pro and what red flags to look for.
