How Much Does A New Electrical Generator Cost?

Photo of electrical generator

Begin by Understanding the Basic Price Range

The first question we always get from clients needing a new system is “How Much?”  The answer is “It depends.”

Are you replacing an existing generator or getting a new one?  Some of this is due to you, the buyer, wanting specific custom features that meet your unique needs.  Some of this is due to the unique design of your home where actually installing a new unit can range from simple to highly complex, depending on ease of access, permitting, local utility, etc.  Your system will be a one-of-a-kind installation.

Using an analogy of buying a car, all electrical contractors have a base price for a new system, much like a MSRP (manufacturer’s recommended retail price) sticker (since we do not sell used systems, a Kelley Blue Book sticker does not apply).  However, a car’s sticker price is for a fully manufactured vehicle, where all crucial decisions on its features have already been made.  The car comes 100% complete and you drive it off the lot.


There are three major types of electrical installations

Electrical Disconnect (Generator Inlet) for a Portable Generator

  • These are optimal for the enhanced do-it-yourselfer who can connect a portable unit so that the refrigerator and gas furnace can be powered or energized.
  • A basic electrical disconnect starts at about $1,500 plus tax within 25’ of panel.
  • Factors that can affect price: Amperage needed, distance from panel, size of generator, automatic transfer switch (ATS).

Permanent Electrical Generator – Critical Operations

  • This is not meant for your entire home, but rather for your refrigerator, furnace, kitchen, and master suite.
  • Starting Price: For a 7-9 KW generator it is best to budget $15,000 plus tax.  If everything goes simply might be a few thousand cheaper.
  • Factors that can affect price: See above, equipment costs also become a much bigger factor.

Permanent Electrical Generator – Whole Home

  • This covers everything if the power goes out but can be very expensive.
  • Starting Price: Best to budget $25,000 here, but prices of equipment can vary based on home size.
  • Factors that can affect price: Labor is about the same as ‘Critical Operations’ but equipment can get pricy here.


Determining an Exact Price (with options of course)

An electrician will come to your home and begin by asking questions about your home and your needs.  This will be followed by a home investigation of the existing panel and meter, generator location, conduit routing from the generator to the panel, and attic and crawl space access if that applies.


Remember that there are Factors beyond Price

The final factor is the one least appreciated by most buyers, yet most critical when it comes to peace of mind, it is the trustworthiness of the personnel to install the system ensuring that no shortcuts are taken, and the trustworthiness of company ownership that if there are issues post-install that there is a safety net to protect your investment.  It is worth noting that, unlike buying a new car where the manufacturer will ensure warranty even if the dealer does not, no electrical manufacturer (or even wholesaler) will protect the new generator unit end user.  100% of that responsibility is in the trustworthiness of the installing contractor; if they are dishonorable, sell out to a new buyer, or go out of business, your investment is in jeopardy.


Setting a Budget is Key to this Process

Our advice is to establish a budget that is comfortable for you.  The above price ranges should be a help in this.  Then shop websites, get referrals from friends, and check company reviews.  Interview a few companies, first over the phone and then with an electrician coming to your home.

We wish you the best with your new generator planning.  We also have information on what to expect with the sales and installation process once you are ready to take the next steps.  Please feel free to reach out, our Customer Service Representatives are more than willing to answer your questions.