Do Standby Generators Increase Home Value?

Investing in a standby generator for your home can be a big decision. They are not cheap but they can provide you and your family with security in that if your power does go out there will be nothing to worry about. Your standby unit will kick on automatically and your home can function just like it did before while on the grid. The fact that these standby systems are automatic AND that there is none of the manual setup that comes with portable generators is enough to sell many people on the idea.

The hesitation occurs when you really begin to look at the cost involved to purchase and install one of these systems. Typically a standby system can range between four all the way up to ten-thousand dollars depending on the size, brand, and features that you choose. Along with purchasing the actual unit you will also need to pay for the installation. In many cases the install costs just as much as the unit itself. So, if you purchase a five-thousand dollars standby system then you can expect to pay another five-thousand dollars for the installation.

This investment into your home begs the question, will you get your money back? If you purchase a standby system will it raise your home’s value? From my research I have found that in most cases a standby system WILL raise your home’s value… but by only half of your investment. So, using the example we just mentioned above on the ten-thousand dollar unit/install your home would see its value raise by only five-thousand dollars.

The remaining five-thousand dollars would be sunk cost. This is why I recommend only purchasing a standby system if you plan on staying in the home for a significant amount of time. If you are going to be selling in a year or two then a standby system may not be worth it. However, if you plan on staying in the home for five years, ten, or even longer then it will make sense to pay for the remaining difference.

In conclusion, do not purchase a standby system with the idea of raising your home’s value. Yes, it can raise the value slightly but you will not get all of your money back. Only purchase these systems if you suffer from frequent power losses AND you plan to stay in the home for years. Otherwise, you are just throwing money down the drain.

Thanks for reading,

Alec Johnson

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