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In most municipalities, you will need a permit to install a permanent home generator, including emergency backup, partial-home, and whole-home generators. A permit for a generator usually costs between $50 and $250, depending on where you live. Your electrician or certified generator installer will usually pull the permit for you—and might be required to do so by your building department—but you’ll be on the hook for the cost of the permit. You should ask your installer before agreeing to any work if they will pull the necessary permits for your project.

No, you should never plug a generator directly into a wall outlet in your house. This practice is extremely dangerous, often illegal, and can cause "back-feeding," where power from the generator flows back into utility lines, creating a life-threatening hazard for utility workers. It can also damage your home's electrical system, including appliances like pumps and HVAC fans. If the main power is restored while the generator is connected, it can destroy the generator and cause an electrical fire. To safely connect a generator, you must use a professionally installed transfer switch or an interlocking kit, which prevents back-feeding by disconnecting your home from the utility grid before the generator provides power.

Setting up utilities on a vacant property usually takes at least a few months, or between 6 weeks to 16 weeks. This process requires working with the local planning and zoning department, hiring a building contractor or engineer to design the utility layout, securing permits, laying the lines, and connecting the utilities.

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.