Does a Whole House Generator Add Value to Your Home?

Does a whole house generator add value to your home? Can it provide an excellent ROI and increase property value by 5% as companies advertise? Be sure to read this article all the way to the end. We have also included a few top-class standby generators that are currently popular. 

Maintaining a home for future investment prospects can be a bit hard on the pocket since not all home improvement investments provide a good ROI.  

So if you are considering adding a whole house generator to your home? You should know whether it will add some value to your property or not.

Firstly, getting a standby generator means uninterrupted backup electricity no matter if the snow, rain, hail, or wild storms hits your area.

Secondly, a standby generator starts automatically when the utility power goes off, and it will automatically shut off when the utility power restores. You don’t need to get up, start the switch, or do anything. It gives a great sense of safety and peace of mind.

Lastly, a smart homeowner also knows the value a standby generator brings to home improvement investments.

According to consumer reports and an Ecousable survey, a standby generator increases the property value up to 5.5%, and the ROI is 150%. So if you spend $20000 on the entire installation cost, the ROI will be close to $30000. Most investors give preference to properties with backup standby generators installed for convenience.

What is a Whole House Generator?

A whole house generator is a large backup generator permanently installed on the property which automatically starts when the utility power goes off and automatically shut off when the utility power comes ON.

Here is a detailed guide about what is whole house generator and why people prefer them.

How Does a Whole House Generator Add Value to Your Home?

Does a Whole House Generator Add Value to Your Home

Apart from 150% ROI and 5.5% addition to the property value, there are insurance savings as well if you install a whole-house generator.

People that are living in areas that are more prone to natural disasters like extreme winds and wild rains are rewarded for installing a backup generator which makes sense.

If are protecting your valuable appliances like ACs, sump pumps, and other expensive things by installing a backup generator in case of power outages, most insurers offer a discount as a reward.

One of my buddies got a discount of 5% on the property portion of a homeowner’s policy by the insurer for installing a whole-house generator by a licensed professional.

This discount can get as high as 8 to 10% because a backup generator brings power security to your home which ultimately increases the value.

Why Investors Prefer Property with Backup Generators

The potential buyer will see the same benefits of the backup generator as you saw during the time of the installation.

Peace of mind and hassle-free backup power during power outages or blackouts is something that everyone wants.

It is more psychological. If the buyer sees a property with a backup generator, he/she will think that the previous owner has taken care of the house.

Standby generators are installed outside the living vicinity so there is no risk involving carbon monoxide poisoning.

Do I Need a Backup Generator?

Power outages are becoming frequent and prolonged in some parts of the U.S. In an emergency, you need backup power for the following reasons other than increasing the property value.

  • Keeping the food fresh in the fridge.
  • Keep the sump pump running.
  • Running electronics in the house including the air-conditioner.
  • For charging batteries and other necessary equipment.

Tips to Maximize Your ROI with the Standby Generator

  1. Hire a professional for clean and glitch-free installation.
  2. Keep records of the installation cost to show the buyers.
  3. Keep the generator neat and clean.
  4. Add a fuel-storage tank in case the utility gas pipeline fails.

Standby Generators vs Portable Generators

MovabilityStandby generators are permanently installedPortable generators are movable and transportable. Great for camping.
Clean powerThe power generator is clean with less than 5% THDNot all portable generators produce clean power
NoiseLess noisy compared to portableOften noisy  
EfficiencyFuel efficiency is very highLess efficient compared to standby generators
Fuel  Not fuel-shortage. Permanently connected to natural gas pipeline or propane tank.Less fuel capacity. You would need to store fuel.
ROIThe ROI is very high. It can go as high as 150% when the property is sold with a backup generator.Little to no ROI. Sellers often take their portable generators with them.
  CompromiseNo need to adjust the lifestyle in case of a power outage. You will get a lot of power for your house.You may need to adjust your lifestyle which means fewer hot showers, less cooking, and partial running of the fridge.
CostVery costly.Budget-friendly. Recommended for areas with fewer power outages, and camping.

Here is the detailed comparison

What is the Best Standby Generator?

The following are the best whole-house generators according to our research.

Generac Guardian 24KW
  • Aluminum enclosure
  • Modern Generac’s G-force Engine.
  • 5-year limited warranty

Champion 8.5KW
  • All-weather steel enclosure
  • Auto-start, low oil shutoff, and other modern features
  • 10 years limited warranty.

Generac Guardian 22KW
  • All-aluminum enclosure
  • Modern Generac’s G-force Engine.
  • Air-cooled standby generator

Whole House Generator Benefits

  • It gives you a sense of safety and peace of mind knowing you have a backup electricity source.
  • The generator starts automatically when the utility power goes off.
  • It is connected with the natural gas/propane pipeline so you don’t need to worry about fuel storage.
  • The fuel burn cleanly compared to portable generators.
  • They are much less noisy compared to portable generators.
  • The maintenance and repair cost is low to a minimum.
  • Standby generators produce clean power (less than 5% harmonic distortion) which is safe for sensitive electronics like cellphones, laptops, TVs, etc.
  • It increases the property value.
  • Whole house generators are installed away from the house to eliminate the carbon monoxide poisoning issue.
  • The installation by professionals covers the local fire safety and local electrical building codes which also increases the safety and property value.

Whole House Generators Drawbacks

  • Standby generators are permanently installed. You cannot move them.
  • They are often expensive.
  • You would need to hire a licensed professional for the installation. It would cost a good fortune.

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