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In some situations, yes. Never try to put biofuel into any home generator without checking the specifics first. If a generator has the ability to run on diesel, it can also run pure biofuel (the clear kind made from seed oils, for example). But if you are using biofuel made from animal fats or vegetable oils, the generator will need significant modifications before it can handle a sludgier type of biofuel.

Generators run on a variety of fuel types, ranging from natural gas to solar power. Keep in mind that fuel costs varying by type:

• Natural gas: $2,000–$21,000 per year 

• Liquid propane: $2,000–$21,000 per year

• Diesel: $3,000–$20,000 per year

• Gasoline: $500–$3,000 per year

• Solar generator: $2,000–$25,000 per unit

• Battery backup: $10,000–$25,000 per unit

Potential benefits of using a natural gas generator include reducing your carbon footprint, lower likelihood of carbon monoxide exposure, budget-friendly operating costs, and low-maintenance, continuous fuel supply. Some possible drawbacks, though, include higher initial installation costs, dependency on a natural gas supply, and installation complexity. Keep in mind that pros and cons will vary based on the type and brand of natural gas generator. 

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.