Things To Consider When Buying A Whole House Generator For Additional Home Value

Things To Consider When Buying A Whole House Generator For Additional Home Value
  • Opening Intro -

    It is a debate for most homeowners if whole house generators are really needed.

    Some homeowners will advise getting one for your home because of its benefits.


There are also advises against it because of factors such as the initial installation cost and the subsequent maintenance. Whole house generators are invaluable in a lot of situations such as in hospitals and other places where power is a necessity. But when it comes to residential use, homeowners would need to check a lot of factors before buying.

Why a Whole House Generator

Although the main purpose of getting a generator is to ensure extended power supply, there are other reasons why some homeowners consider getting one for their homes. One of the less-known reason why people would want to consider setting up a whole house generator is the impact that it would add in the property’s resale cost.

In this case, the generator is seen as more of an "investment" than a "utility" device. Will it be a good investment to install a generator? Or would it be better to consider other house improvements?

Just like any house improvements, the resale value of generators is based on a lot of factors, not only the cost. In places such as in California, where the weather year-round is good, a generator might not be a very attractive factor for homebuyers.

On the other hand, in places like Florida, where hurricanes can come and go at any moment, generators can get a big resale factor. It is also important to factor the cost of installation and maintenance needed in operating a home generator.

Whole House Generators Installation And Maintenance

The cost of installing a generator depends on its size, capacity, and other features. Small generators that deliver between 7-10kW usually range from $2,500 to $4,500 and a separate installation cost between $500 to $1000. Meanwhile, large ones that deliver 22-45 kW can get from $9,000 to $15,000 with the installation cost.

Factors that affect the installation price includes the home needs of a house, the site, equipment, installation of the fuel tank, and other additional features that need to be installed. The harder the installation process, the more costs you’ll need to expect. This will be an important factor, as it will affect your return of investments directly.

In addition, you would also want to consider the maintenance that a generator needed. Fuel type is a factor when it comes to generators. Some generators use propane, which is more expensive but requires less maintenance. Natural gas, on the other hand, is costlier to install, but repairs are infrequent.

You will also need to include the factor of hiring a professional and the risk of DIY maintenance. If you DIY your maintenance, you’ll need to have the knowledge in several things such as lubrication and the machine’s other mechanisms. If you prefer hiring a professional, which is often the safer option, you need to consider the cost. Generators usually need to be maintained at least semi-annually.

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How Whole House Generators Add Home Value

Just like any investments, a whole house generator will only be a successful investment if you can recoup more of the costs you shouldered. Generators are usually seen more as a luxury feature. And because of this, even though whole house generators are seen as attractive prospects, the value they add to the house might not be that much. Usually, people with more funds add this feature in order to not interrupt their lifestyle when calamities or massive disruption in the grid happens. There are a lot of factors to consider too, such as the cost of the installation, the electricity consumption of the house, and the number of appliances. Bigger houses such as multi-million mansions might need multiple generators, and hence, more funds.

Location is one of the greatest factors that add home value for generators. According to Remodeling Magazine’s 2014 report, places in Florida have a return on investment of more than 100% in generators. Even American Electric in Jacksonville offers a lot of generator options for its customers. If you live in the right area, you might actually have a huge return on investment rate. Places with high temperature and frequent shortage in power supply, as well as the areas that are pounded with natural calamities more often, are the areas where a generator gets heavy returns.

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A recent example is Hurricane Michael, which appeared last year, rendered approximately 2.5 million electricity consumers in the Southeast. The total losses from the hurricane, in addition to the losses caused by the massive power interruption for businesses, was estimated to be $8 billion. Installation of new wires and infrastructures, as well as other things can take over a week or even months when a massive power outage happens, that’s why having a generator can be handy on places that are plagued with a lot of hurricanes.

In places where power supply is often not enough, a generator is essential. A generator can keep your house cool even during a hot summer and protect appliances from damages Generators also help in keeping the house warm up during winters when power outage takes place. American Electric in Jacksonville installs backups, as well as offer maintenance services to its customers to ensure that calamities such as hurricanes will be weathered out especially during extended outages.

The Return Of Investment In Installing Whole House Generators

On average, the return of investment in whole house generators across the country is 67.5% of the cost of purchasing and installing a whole house generator, according to data from 2014. If you’re in the right area, the purchase of generators is considerable. Your generator can add considerable value during a house sale. However, if you’re in the area where power supply is steady, or if natural calamities are rare, consider more attractive options that can add to your house value.

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Instead, you can consider installing a steel entry door replacement, which has the highest resale percentage of 85.6%. Garage door replacements also count, giving a recoup value of 85.6%. Other options include installation of fiberglass entry door replacements, additional wood deck, a vinyl window or wood window replacement. Although you can still recoup on your initial house investment, you might want to consider generators as an initial afterthought for the homebuyer.

More In Peace Of Mind Than An Investment

Still, a whole house generator is still a good purchase, especially if your household really needs the usage. Generators that relies on solar power can even be used regularly for additional savings while not cutting electricity usage. These are called portable power stations and is relatively new to the market. However, these products don’t provide the same power that generators can provide and will usually depend on the weather condition.

other valuable tips:

A backup power supply is still a good investment at any time when you’re a freelancer or someone with a livelihood that relies heavily on electricity and needs to be always connected. Although its recoup home value is not as high as the other investments, installing a generator can become handy on unexpected outages. With this in mind, you should be able to choose from different kind of generators based on your consumption needs.

Real estate evaluators don’t usually add additional value to the generators, but if the value added in your current lifestyle is worth it, then go for the purchase. It is more important to always make sure your house and other properties are safe from damages. You can get recoup your house investment somewhere later on with additional house improvements.

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