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Evaluating the difference in cost, functionality, and performance between conventional fuel-powered backup generators and home battery energy storage systems (BESS). The risk of power grid blackouts is increasing, and according to the U.S. Department of Energy, power outages related to extreme weather increased by 80% across the country between 2011 and 2023. With the U.S. grid aging and in need of repair, homeowners are turning to backup power at home. There are two main options: traditional gasoline generators and battery energy storage systems. How do they compare? Gasoline generators typically run on diesel, propane, or natural gas. Home battery energy storage systems are often combined with a rooftop solar installation. When it comes to initial cost, gasoline generators have the advantage. According to a CNET study, a home battery system costs between $10,000 and $20,000. A backup gasoline generator costs between $7,000 and $15,000, according to CNET. However, the costs of battery energy storage systems are reduced by 30% thanks to the federal investment tax credit, whether combined with a solar installation or not. Despite their initial cost, home batteries typically have lower operating and recharging costs, although this varies depending on the price of electricity or the cost of rooftop solar power. Batteries can be charged through the grid or a rooftop solar system, refueling themselves. The cost of refueling gasoline generators is generally higher, although this largely depends on the cost of diesel, propane, or natural gas in your area. The lifespan of a home battery is typically about 10 years, while a generator can operate for 20 years or more, albeit with regular maintenance and repair costs to keep it operational. The following chart from solar and storage market operator EnergySage shows the expected 20-year costs for battery storage versus generators, assuming that installing a home battery includes the cost of installing solar: From an operational standpoint, a home battery has advantages. The units are typically smaller, can be installed inside a garage and mounted on a wall, or installed outside. Gasoline generators tend to be quite noisy when operating. Generators also pose a health hazard because they produce carbon monoxide. If your generator is portable, its critical that it be operated outdoors, as many people have died from carbon monoxide exposure due to operating them indoors, according to OSHA. If you own a portable generator, remember to place it outdoors at least 20 feet (6 meters) from doors, windows, or vents in your home, the Texas Department of Insurance said. Maintaining this distance helps protect you from carbon monoxide gas, which is colorless, odorless, and potentially deadly. Generators often have an advantage in their power output. While whole-house backup is possible with batteries, some homes may require two or more batteries to back up the entire house. With a single battery, customers often work with a solar installer to select several critical breakers on the main panel to back up. In several states, batteries also have the advantage of being eligible to participate in grid-export programs, often referred to as virtual power plants (VPPs). VPP program operators can pay battery owners to enroll their batteries to send electricity to the local grid during peak demand hours. Solar installer Sunrun, for example, pays its customers $400 per year to enroll in its VPP program in certain states. The verdict: With more flexible installation options, a quieter and sleeker design, and effortless refueling, home batteries present a more maintainable backup power option. Generators have an advantage in initial cost, but over their lifetime, with refueling and repairs, they can add up to a higher cost. Additionally, generators are noisy and pose a health risk due to carbon monoxide emissions. |
