A whole-house generator can increase your home’s resale value by 3–5% and, in some cases, provide up to a 150% return on investment. The exact impact depends on location, generator type, and buyer demand.
Let’s take a deeper dive into why a generator can make your home more attractive and what you can do to get the most from your investment.
Why Whole-House Generators Boost Home Value
Whole home generators can boost your home’s value because they offer peace of mind, and this is especially true in more isolated locations.
Reliable Backup During Outages
A generator allows you to keep the furnace, refrigerator and other important items running when the power goes out. This can be especially beneficial if the power is expected to be out for several days.
Strong Buyer Appeal in Outage-Prone Areas
Generators are almost mandatory for homes in areas that experience frequent outages. Having them ensures that no one is going to be too cold, too hot or without access to essential utilities.
Safety and Comfort Benefits
Walking in a dark home is dangerous while lack of heat could result in frozen pipes. Having lights, heat and other essentials can make it safer and more comfortable to survive until the power comes back on.
Cost vs. Return on Investment
You should expect to see a return on investment (ROI) of about 5% depending on the type of unit that you buy and the cost of installation.
Average Installation Costs
Expect to spend about $5,000 for a basic installation and up to $15,000 in a more difficult or precise situation. Seasonal and other factors can play a role in determining how much you’ll pay.
Value Increase & ROI
Ultimately, your home’s value will increase by up to 5% of the generator’s purchase price. In other words, if you spent $10,000 for the unit, you could stand to increase your home’s value by up to $10,500.
Factors That Influence Added Value
Location matters when it comes to demand for generators, and it’s also important to ensure that your unit is in good working condition if you want to profit from it.
Location & Market Demand
Typically, you’ll see a larger ROI in rural areas where you’re more reliant on yourself if the power goes out. Conversely, you’ll see a lower return in urban areas as well as those that don’t experience frequent or lengthy outages.
Generator Type & Quality
Generators from brands known for quality and reliability are likely to be more attractive than those made from brands no one knows about.
Maintenance & Documentation
Ideally, you’ll have the generator inspected annually to ensure it works properly. More importantly, you’ll keep good records to prove to buyers that regular maintenance was performed.
Additional Financial Benefits
There are several indirect benefits to consider when installing a generator such as lower insurance premiums.
Lower Insurance Premiums
A home that still runs after a power outage is less likely to incur secondary damage. This reduces the risk of a claim, which reduces your insurance premium for the year.
Avoidance of Outage-Related Losses
Food is less likely to spoil if the refrigerator is working, and mold and pests are less likely to flock to a home where the dehumidifier still runs after a hurricane.
How to Maximize Resale Value with a Generator
While installing a generator can be a great decision, it won’t move the needle if buyers don’t know it exists.
Maintain and Service Regularly
Follow manufacturer instructions related to proper maintenance. In most cases, this can be done by one of our trained professionals, and it may be possible to buy a routine maintenance package.
Showcase the Generator in Listings
Including the generator in an MLS listing can increase the number of interested buyers. A higher level of demand could lead to a bidding war, which leads to a higher sale price.
Provide Documentation
Keep all service records and other important information for buyers to review. It may be best to digitize records for easier access.
Frequently Asked Questions
How much value does a generator add to a home?
A generator can add up 150% of the purchase price to a home’s value.
Do portable generators add resale value?
Adding any type of generator may add to your home’s resale value assuming it’s a quality product that meets a buyer’s needs.
Is generator installation worth it in urban areas?
While a generator may be less attractive to buyers in urban areas, they can still offer incredible benefits that make it worth adding to your property.
Can I save on homeowners insurance with a generator?
Your insurance provider may offer a discount for installing a generator on your property. Call your agent to get more information about whether this is true in your case.
How long do whole-house generators last?
A whole-house generator can last for up to 20 years if properly maintained. Depending on how often the unit is used, it may last up to 30 years.
Are home generators tax deductible or eligible for tax credits?
In most cases, home generators are not tax deductible. However, they may qualify under specific conditions, such as medical necessity, business use, rental property depreciation, or if the system is renewable energy–powered. Always consult a licensed tax professional for guidance.
Key Takeaways
- Whole-house generators can raise resale value by 3–5% and deliver up to 150% ROI.
- Location, type, and upkeep heavily affect the added value.
- A quality unit can provide insurance savings and protection against costly outages.
Ready to Increase Your Home’s Value? Contact Us Today
If you are looking to increase the safety, comfort and security of your home, a whole-house generator may be the perfect solution. Don’t hesitate to give our team a call today to see how a generator can make your home a safe, comfortable and more valuable property on the open market.
We serve the Pompano Beach, FL area as well as nearby towns, and when you work with Mister Sparky you won’t have to put up with any malarky.