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Why Are Home Generators So Expensive? (10 Reasons)

By William Butterworth January 27, 2023

Red petrol driven generator viewed from above

 

If your home frequently loses power, then having a home generator can be extremely convenient.

Generators allow you to continue to provide electricity to your home while you wait for your power to be restored.

Depending on your circumstances, a home generator might even save your life.

While buying a home generator can be important, especially if you live in areas where you lose power regularly, it isn’t always the cheapest purchase.

Considering how important generators can be for some people, you may wonder why they’re so expensive.

 

Why Are Home Generators So Expensive? (10 Reasons)

Gasoline powered portable generator

 

The average price of a home generator ranges from $200 to as much as $20,000.

Home generators are expensive because of the various costs associated with powering them, their production costs, and the cost of installing them in your home.

Let’s look at these factors in more detail.

 

1. Fuel Costs For Fuel-Powered Generators

pour gasoline from canister in portable mobile backup standby generator

 

One of the reasons generators are expensive is that you need to use fuel to generate power.

Most home generators aren’t attached to the electrical grid.

Portable generators, for example, rely on an external power source.

Some of the most popular generators are powered by fuel.

There are both gas generators and diesel generators available.

To make them run, you need to fill them with gas.

The generator then uses the gas to power itself and output power for your home.

While fuel-powered generators tend to be on the cheaper side, the cost of keeping them operational can make them expensive.

If you’re out of power for a long time, then you’re going to have to keep buying fuel to keep your generator active.

If fuel prices are high, then you’re going to spend a lot of money on your generator.

This is also true if your generator isn’t that efficient or you’re using a lot of power.

You might end up spending several hundred dollars on your generator if you lose power frequently.

Generators are expensive because the cost of powering fuel-powered home generators is expensive.

 

2. Natural Gas Generators

Natural Gas Generator for House Building

 

While some generators use fuel to power themselves, others use natural gas.

The generator connects to a natural gas line and uses it to generate power for the home.

This type of generator tends to be a bit more expensive than a fuel-powered generator because it requires more safety features.

Natural gas can be dangerous if it leaks.

All it takes is a spark for an explosion to occur.

As such, these types of generators go through an abundance of quality testing to ensure they’re safe.

The extra attention makes them more expensive to produce.

Another reason natural gas home generators are expensive is that natural gas can also be expensive.

When gas prices are high, then natural gas prices are expensive, too.

Since these generators use natural gas, the more power that the generator uses, the more natural gas it’s going to need.

If you keep using natural gas, then you could face a very expensive natural gas bill.

As such, both the price of the generator and the cost of running it can be quite expensive.

Home generators are expensive because natural gas generators can be expensive to run.

 

3. Solar Panel Generators

Installing a Solar Cell on a Roof

 

Another popular type of home generator is one that’s solar-powered.

If you wish to keep your home powered but stay away from fossil fuels, you may be considering solar-powered generators.

Like other solar-powered products, the generator gets its power from a solar panel.

It then uses that stored energy to produce power for your home.

The problem with solar-powered generators is that they’re expensive to make.

While the technology to produce solar panels and related items has become cheaper, it isn’t incredibly affordable just yet.

Generators that rely on solar energy to produce power are not especially affordable.

They are often expensive to manufacture since they’re made of pricey materials.

Another problem with solar-powered home generators is that they’re expensive to maintain.

Since they’re expensive to make, then their repairs are going to be expensive, too.

As such, the cost of owning a solar-powered generator tends to be high.

The benefit of a solar-powered generator is that you don’t have to pay for a fuel source.

You can save up money for the inevitable maintenance costs.

Home generators are expensive because solar-powered generators are expensive to produce and maintain.

 

4. Power Output

Portable emergency power generator with power cord

 

The amount of power that a generator puts out can also determine its price.

Generators that produce more power are going to be more expensive.

That’s because, in order to produce that power, they need higher-quality parts.

They also tend to be a bit larger.

Larger sizes and more expensive parts make production more costly.

To offset those costs, the company has to sell its generators at higher prices.

Home generators are expensive based on the amount of power they put out.

 

5. Installation Costs

Electric plug with wires on the generator

 

Perhaps one of the biggest costs you’ll notice when it comes to buying home generators is the installation cost.

There are two main types of home generators.

Portable generators don’t always need installation.

You can usually hook them up yourself and then get them running when the power goes out.

Other generators, however, attach directly to your home.

They have the ability to recognize when the power is out and turn on immediately.

These types of generators usually require installation.

That’s because you usually need an electrician to tie them into the house’s electric system.

It’s not safe to install a generator on your own.

Since it’s a skilled tradesman who performs the job for you, they’re able to charge an expensive service.

You might also benefit from an energy consultation before the installation.

In this case, a representative from the generator company will examine your house.

They’ll determine how much power your house needs, and then can give you a good idea as to what generator matches your needs.

You might end up paying for that service as well.

The end result is a generator that will power your home perfectly and is ready to run at any given point.

The disadvantage is that installing a generator can be extremely expensive.

The cost of installing a generator can be as little as $3,000 or as much as $6,000 or more.

Add that on top of the price of your generator, and the package becomes very expensive.

Home generators are expensive because the installation costs are expensive.

 

6. Inverter Generators

Portable Inverter Generator

 

You’ll also find that home generators are expensive when you buy an inverter generator.

An inverter generator provides many benefits that a standard generator doesn’t.

For one, it tends to run more quietly.

The problem with some portable generators, especially fuel-powered ones, is that they can be very loud.

They might even keep you awake at night with their loud sound.

Inverter generators are quieter and thus more pleasant to use.

Another benefit of an inverter generator is that they’re able to limit how much power goes into a house.

If there isn’t much demand for power from the house, then the generator is able to reduce its supply.

Other generators continue to send power to the house regardless of whether people are using a lot of power or a little bit of it.

As such, inverter generators can help you save money on gas since they don’t use as much.

Because the generator is a bit more advanced and can regulate itself, it’s more expensive.

For one, the cost of producing an inverter generator is higher.

That makes it more expensive from the start.

Secondly, because of the benefits it provides, it’s a more appealing product.

That influences its price as well.

Home generators are expensive when they’re inverter generators since they’re more costly to produce.

 

7. Worthy Investment In Some Areas

hand starts a gasoline electric generator

 

Some places may have more of a need for generators than others.

For example, if you live in an area that is under a constant threat of storms, then there’s a good chance that your power will go out regularly.

The same goes for living in a wooded area.

Depending on where you live, you might not have your power restored for some time once it’s lost.

That’s because power companies tend to start with the most important facilities, then work through dense populations before reaching those out in the country.

As such, you could go a few days without power.

Someone whose house frequently loses power will find an investment in an expensive generator worth it.

With an expensive generator, they don’t have to worry about running out of power again.

Someone who doesn’t lose power that often might not find an investment in an expensive generator as valuable.

To them, the generator may seem overpriced because it doesn’t hold as much value to them.

Generator companies also know when to ask for higher prices for their goods.

Storm season, for example, is when generators tend to be at their most expensive.

That’s when demand is highest for generators.

The generator companies can get away with more expensive prices because the demand during that time is higher than usual.

Generators are expensive in certain areas due to high demand.

 

8. Portable Or Fixed

Power generator standing in the garden

 

Another factor that can make certain generators expensive is if they’re portable or fixed.

A portable generator isn’t attached to your home.

They’re often on wheels, and you can easily move them from a storage shed to your home as needed.

Because they just attach to your home when you need them, they tend to be on the cheaper side.

They also don’t typically need installation, either.

Fixed generators, on the other hand, are a lot more expensive.

They require a contractor to install them.

The advantage of a fixed generator is that it automatically turns on when you lose power.

It’s able to sense when the power goes out and starts supplying power without your needing to do anything.

Portable generators, on the other hand, often use a pull system like a lawn mower to start.

Others might have a button you push to start it up.

Either way, they usually require manual starting.

Since fixed generators are more convenient and offer more benefits, they tend to be more expensive.

Home generators are expensive when they’re fixed as opposed to portable.

 

9. Maintenance Costs

Mobile Portable Generator Set for Home Use

 

Maintaining a generator is also expensive.

The more complicated a generator is, the more expensive it is to maintain.

That’s particularly true if it has a lot of moving parts.

Over time, those parts wear out.

If you have an expensive generator, then you can be sure that its parts are going to be on the expensive side as well.

Buying a generator is expensive, but maintaining one can be expensive, too.

Home generators are expensive because maintenance costs can be high, especially if you need to hire someone to perform the work.

 

10. Extra Features

Red power generator

 

A final reason generators are expensive is that some of them include extra features.

For example, some will come with some sort of hookup that enables you to monitor the power levels generated by the generator.

You can adjust those power levels if it’s an inverter generator.

Others might tell you how much fuel a generator has or how much power it’s drawing from the solar bank of batteries.

Each additional feature included with your generator is going to increase its price.

Home generators are expensive when you buy one with extra features.

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Filed Under: Home Improvement

About William Butterworth

William Butterworth is a professional writer of both compelling content copy and fiction. When he isn't rescuing his faithful dog's ball from beneath the sofa, he's busy with his friends playing Dungeons and Dragons or various other nerdy past times. A lover of books, tea, and 1800s fashion, he often feels a small step out of place amid modernity. In the words of Tolkien, all those who wander may not be lost, but William certainly is.

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