Home batteries vs. generators: Which is right for you?

Historically, most people have relied on propane, diesel, and natural gas-powered home generators for resilience during power emergencies. But these days, homeowners are increasingly choosing a home backup battery, a cleaner alternative that offers the same peace of mind—and better financial savings.

Solar battery systems offer many of the exact backup power functions as conventional generators but can run on clean energy instead of fossil fuels. But how do the costs, fuel sources, size, and maintenance requirements compare?

There are two primary reasons that homeowners have historically opted for generators as a backup solution: They cost less upfront and, in the past, they've been easy to find and setup. You can frequently buy backup generators at home improvement stores, and some might not even need to be installed by an electrician. 

But generators aren't perfect. And batteries are increasing in popularity.

Generators are the way of the past

Generators come with several downsides: 

• You need fossil fuel on hand to power them, which can be problematic during unexpected outages.

• Generators are large, loud machines that shouldn't run every day and require regular maintenance, meaning you only benefit from having them in the event of an outage.

• Generators cause significant local pollution by burning fossil fuels, including carbon monoxide.

Are batteries the future?

Batteries aren't perfect. They're more expensive upfront and require an electrician to install. But they solve most of the issues that can sometimes plague backup generators.

• When paired with solar panels, the renewable resource that is the sun powers batteries.

• Batteries are eligible for incentives like tax credits and rebates, which can significantly lower those upfront costs.

• Batteries can run entirely on clean, renewable solar power—and they won’t emit pollutants around your home.

The cost of installing a generator to provide backup power for your home or business depends on the amount of power you need and the equipment you choose. Typically, it costs around $7,000. 

By comparison, a 13.5 kilowatt-hour (kWh) home backup battery costs about $9,400 after incentives. If you want whole-home power, you'll need more storage than that.

The average net upfront cost of a solar-plus-storage system is around $30,000 based on the following calculation:

$29,360 (11 kW solar panel system) - $8,808 (solar tax credit) + $13,487 (13.5 kWh battery) - $4,046 (battery tax credit) = $29,993

Total cost over 20 years: Solar + storage vs. natural gas generator

*Assuming a current monthly electric bill of $150

**Assuming tax credits and battery pricing remain the same as today

Table sources: EnergySage, HomeAdvisor, Home Depot

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