Ready for the Next Power Outage? Standby Generator Costs and Installation

In regions like Houston, where hurricanes and severe storms frequently lead to power outages, having a whole-house standby generator is essential to ensure your home remains powered during emergencies. Power outages lasting days or even weeks are not uncommon, as seen during Hurricane Beryl, which overwhelmed Houston, making the need for backup generators a sound investment.

This is the first post in our three-part series on standby generators. After learning about the costs and installation process in this post, stay tuned for Part 2, where we’ll cover safety guidelines and special flood zone considerations that are vital when setting up a standby generator in your home.

Why Invest in a Standby Generator?

Standby generators are permanent, fully automated backup power systems that engage automatically when the power goes out. Unlike portable generators that require manual operation, these units can power an entire home seamlessly. Whether it’s keeping your HVAC systems running, ensuring food storage is safe, or powering essential medical equipment, standby generators provide peace of mind when the grid goes down.

Costs of a Whole-House Standby Generator

The cost of a whole-house standby generator depends on several factors, including the size of your home, the generator's capacity, and whether you’re in a flood zone. Here's a comprehensive breakdown:

Generator Size and Power Output

  • 22-24 kW: Most average homes can operate efficiently with a 22-24 kW generator. These units provide enough power for essential systems like heating, cooling, refrigeration, and lighting.

  • Larger units (30-48 kW): For larger homes or homes with higher electrical demands, a more powerful generator will be required. These systems can cost significantly more but are capable of powering luxury features such as pool heaters or large HVAC systems.

Cost Breakdown

  • Generator price: The generator unit itself typically ranges from $5,000 to $10,000, depending on size and power capacity.

  • Installation: Professional installation can add another $5,000 to $7,000, covering labor, electrical wiring, and plumbing for fuel connections.

  • Flood Zone Costs: If your home is in a flood-prone area, additional costs for elevating the generator above the Base Flood Elevation (BFE) and securing it with platforms and anchors, as well as additional permit fees will add between $2,000 to $5,000 to the overall cost. Additionally, gas and plumbing adjustments, like installing “snorkels” for gas regulators, can further increase expenses.

  • Total cost: For a standard 22-24 kW generator, expect to pay between $13,000 to $15,000 for the generator and installation in non-flood zones. If you are in a flood zone, costs can rise to $18,000 to $20,000 due to the extra precautions and adjustments needed.

Emergency power solutions

Installation Process for Standby generators

The installation process for a whole-house standby generator is complex and must be done by professionals to ensure safety and compliance with local regulations. Here’s a step-by-step outline:

Step 1: Determining Generator Size

A licensed electrician will assess your home’s power needs, including critical systems like HVAC, refrigeration, and lighting. They’ll determine the appropriate generator size based on your home’s electrical load.

Step 2: Securing Permits

Your installer will handle all the permits required for installation, including:

  • Electrical permits for wiring

  • Plumbing permits for fuel line connections (natural gas or propane)

  • Zoning permits for generator placement

Make sure to check your Homeowner’s Association (HOA) restrictions if applicable, as some communities may have specific guidelines for where generators can be placed.

Step 3: Choosing the Installation Location

Question: Can I install the generator indoors?

Answer: Absolutely not. Generators should never be installed indoors, under overhangs, or near vegetation due to fire and ventilation risks. Proper installation ensures the generator is placed in a location that allows exhaust to dissipate safely, reducing the risk of dangerous gases accumulating near your home. To learn more about the dangers of carbon monoxide, read here: https://www.mayoclinic.org/diseases-conditions/carbon-monoxide/symptoms-causes/syc-20370642

The National Fire Protection Association (NFPA 37) guidelines recommend:

  • 5 feet from openings in walls (windows, doors, vents, window wells)

  • 18 inches from the back of the generator to a stationary wall or building

  • 5 feet of clearance above the generator

  • 3 feet of clearance at the front and both ends (including trees, shrubs, and bushes)

Additionally, verify that potential water intrusion (from sprinklers, roof run-off, downspouts, and sump pump discharge) is directed away from the generator enclosure to prevent damage.

For more detailed guidance on clearance requirements, visit Generac’s official support page.

Step 4: Installing the Transfer Switch

The transfer switch automatically redirects power from the generator to your home when the utility power goes out. This switch is essential for safe and efficient operation and is installed alongside your main electrical panel by a licensed electrician.

Step 5: Connecting Fuel and Electrical Lines

Once the transfer switch is installed, the electrician will run the electrical wiring to your home’s critical circuits, and a licensed plumber will install the fuel line (natural gas or propane) to ensure the generator is always ready for use.

Large home standby generator installation with dual Automatic Transfer Switch (ATS).

Dual ATS Setup for Larger Homes

Choosing the Right Installer: Why It Matters

In times of high demand, many companies aim to make a quick buck by offering generator installations without the necessary expertise or commitment to long-term service. It’s critical to choose a trusted, professional installer who completes the installation correctly to ensure the safety of you and your loved ones. We’ve encountered several unprofessional installations, and it’s simply not worth taking the chance with your home’s power and safety.

Example of Improperly Placed Generator:

We’ve encountered situations where generators were installed incorrectly, leading to serious safety hazards. Below are photos illustrating multiple code violations and safety risks that could have been easily avoided with proper generator installation.

generator installed too close to a wooden fence, violating safety regulations and increasing fire hazards.

Combustible Materials

This generator installed too close to a wooden fence, violating safety regulations and increasing fire hazards.

Gas line installed incorrectly, no particle trap.

Generator placed only 13 inches from the fence, falling short of recommended safety distance requirements

Not By the Code

Generator placed only 13 inches from the fence, falling short of recommended safety distance requirements

Standby generator installed near a second-floor window, posing a serious risk of carbon monoxide poisoning.

Risk of CO Poisoning

Standby generator installed near a second-floor window, posing a serious risk of carbon monoxide poisoning.

Clear access

No shrubs, plants or other equipment in front of service panels or ATS’

Whole-house standby generators are a valuable investment for homeowners in storm-prone areas like Houston, where power outages can last for days. While the installation process can be complex, especially in flood zones, partnering with professionals ensures your system is installed safely and performs reliably when you need it most. At Arieli Custom Homes, we’re here to guide you through every step, from selecting the right generator to installation and ongoing maintenance.

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