What is the True Cost of Installing a Standby Generator
What is the True Cost of Installing a Standby Generator
As power outages become more common due to extreme weather and grid issues, homeowners and businesses are increasingly considering standby generators to ensure uninterrupted power supply. But before making this investment, it’s essential to understand the overall cost of installing a standby generator. Below, we’ll break down the factors that influence the price and give you an idea of what to expect.
Generator Cost
The price of the generator itself depends on several factors, including its size, brand, and features. For residential use, most standby generators range from $2,000 to $10,000. Commercial units, depending on their capacity and power output, can cost significantly more, with prices reaching up to $20,000 or more for larger models.
Some of the most well-known brands, such as Generac, Kohler, and Briggs & Stratton, offer a variety of options that vary based on the power needs and intended use.
Installation Costs
Installing a standby generator requires professional assistance to ensure proper setup and safety. Installation typically involves:
Electrical Work: Connecting the generator to your home’s electrical system using a transfer switch.
Gas Fitting Work: For generators powered by natural gas or propane, a connection to your fuel line is required.
Foundation: Some generators need a concrete pad or similar base to sit on, which can add to the overall cost.
Depending on the complexity of your home’s electrical system and the generator size, installation costs can range from $5,000 to $9,000. In commercial settings, installation could be even more expensive due to additional wiring and more complex requirements.
Permits and Inspections
In many areas, installing a standby generator requires obtaining permits from your local municipality. The cost of permits can range from $50 to $500, depending on where you live. Additionally, after installation, your system will likely need to be inspected to ensure it meets local codes and safety standards.
Accessories
Oil and battery warmers are essential accessories for standby generators in cold climates, where freezing temperatures can hinder performance. An oil warmer ensures that the engine oil remains fluid, preventing it from thickening in cold weather, which allows for smoother engine startup and reduces wear during operation. Battery warmers, on the other hand, keep the battery at an optimal temperature, preventing it from losing charge or becoming too cold to start the generator. Together, these accessories help maintain the reliability and longevity of your generator in winter months, ensuring it can power up when needed most, even in extreme conditions.
Maintenance Costs
Like any major appliance, standby generators require regular maintenance to remain functional. Yearly maintenance costs can run between $150 to $500 for residential generators. If you opt for a service contract, these costs may be spread out, but they’re essential to ensure your generator is ready in an emergency.
Cost Estimate Example
In a best-case scenario, the installation of a standby generator is simplified when the generator is close to both the electrical meter and gas meter, and no underground work is required. This reduces labor and material costs significantly. Below is an example cost breakdown for such an installation.
Generator
Assume you're installing a 22kW Generac generator, which is suitable for most medium to large homes. The cost of the generator would be around $7,500.
Automatic Transfer Switch
Assuming a house with 200 amp service, a Service Entrance Rated 200 Amp Single-Phase Automatic Transfer Switch (ATS) would then be required. The cost of the ATS would be around $1,240.
Accessories
Cost of oil and battery warmers are $165 each, for a total of $330.
Installation
Since the generator is located close to the electrical meter and gas meter, the installation process is much simpler, with no need for extensive trenching or long cable runs.
Electrical work: $3,200 (minimal wiring and transfer switch installation).
Gas line connection: $1,300 (since the generator is near the gas meter, only a short connection is required).
No concrete pad required: If the generator can be placed on a pre-existing surface, this eliminates the need for a concrete foundation.
Total installation cost: $4,500.
Permits and Inspections
In this scenario, let's assume permits and inspections cost around $200, which is typical in many municipalities for a standard residential installation.
Maintenance
The first year of maintenance is usually optional, but for peace of mind, you may choose a service contract that costs $200 annually for basic upkeep.
Total Estimated Best-Case Scenario Cost:
Generator: $7,500
Automatic Transfer Switch: $1,240
Accessories: $330
Installation: $4,500
Permits and Inspections: $200
First Year Maintenance: $200
Grand Total: $13,970
This example assumes a straightforward, no-complications installation, with minimal labor and materials required due to the proximity of the generator to both the electrical and gas meters. From the graphic above, we can see that the overall cost is about half the cost of the generator. Keep in mind that in a less-than ideal scenario, the overall cost could be twice that of the generator.
Conclusion
Installing a standby generator is a significant investment, but it can offer invaluable peace of mind during power outages. By understanding the various costs involved — from the generator itself to installation, fuel, and maintenance — you can make an informed decision that fits your budget and power needs.
For more detailed advice and personalized estimates, contact Galico Gas Services to assess your specific requirements and offer guidance on the best options for your home or business.
*Prices and charges exclude applicable taxes and are current as of September 13, 2024, and subject to change.