With Up to 150 Percent ROI, This Home Amenity Practically Pays for Itself

Whole-house generators, also called standby generators, serve as backup systems that will automatically keep your home’s electricity running in the event of a power outage. Whether you live in an area that frequently loses power from natural disasters or just want to make sure you’re prepared, the idea of installing one of these systems, such as the KOHLER 26 kW Home Generator, can be very appealing.

If your electricity goes out, the generator switches on automatically, preventing service interruptions and keeping essential systems and appliances running. Compare this to portable generators, which require manual start-up and connection of devices to the unit, as well as frequent refueling to receive backup power. 

This convenience requires some investment. Whole-house generators typically cost between $7,000 and $25,000 or more, depending on the selected fuel source and the size of your home. However, because of their appeal to potential home buyers—and, in the near term, savings from avoiding costly emergencies—these generators offer an excellent return on investment (ROI). We consulted several real estate experts and asked them, “Does a generator increase home value?” Continue reading to find out what they shared.

Experts agree that installing a whole-house generator can increase property value.

All five of the real estate experts around the country that we contacted agree that whole-house generators can increase the property value of a home. However, there is some disagreement in just how much a home’s value will increase, which makes sense given that demand is likely higher in regions of the country where natural disasters are more likely to knock out power for extended periods. Some say that homeowners could see an ROI of up to 150 percent for the installation of a whole-house generator:

• Michael J. Alvarez, CPRM, CPIA, CEO of NuSure Insurance in Miami, Florida: “For a $10,000 generator, we’ve seen home values rise $15,000 to $30,000. The exact ROI depends on factors like local housing demand and generator specs, but in general, the value boost covers 60 to 100 percent of costs. Over 5 to 10 years, fuel and maintenance fees are often negligible compared to the upfront investment.”
• Stacy Allwein, realtor and team leader of the Allwein Team at Real Broker in Frederick, Maryland: “Based on personal experience of selling homes with a whole-house generator, I would estimate the return on investment should be approximately 60 to 70 percent. The return on investment would be bigger in areas where there is demand for generators.” 
• Seth Williams, real estate broker and owner of Reference Real Estate in Boston, Massachusetts: “Home appraisers discovered that installing a generator to power a whole house produced a 150 percent return on investment, based on a survey of renovation specialists.”
• Yosef Adde, real estate investor and agent with I Buy Houses in Torrance in Los Angeles, California: “The ROI for a whole-house generator may be somewhere between 50 percent and 80 percent of the dollar amount spent on the first purchase regarding the site and value of the house.”
• Mitchell David, realtor and founder of Beach Life Premier Team in Ocean City, Maryland: “If you install a whole-house generator in a storm-ridden area like Florida, the ROI can be as high as 150 percent.”

Standby generators also offer more immediate benefits, including cost savings.

There are many short-term benefits associated with installing a Kohler standby generator. You could experience some of these benefits within days or weeks of installation, depending on where you live and the state of the local power grid.

Instant Power Recovery

With a standby whole-house generator, power to your home will be restored almost instantly and continuously. “A whole-house generator ensures that certain services such as heating, cooling, and security systems remain functional,” Adde says. “This avoids problems such as pipes bursting as a result of freezing in the middle of a winter blizzard.” Moreover, any essential medical equipment will also continue to function.

Cost Savings

Standby generators can save you substantial amounts of money each time they are activated. “Having a whole-house generator can ensure that homeowners can stay in their homes during emergencies and long-term power outages, making the need to pay for alternative housing unnecessary,” Allwein says. She also notes that these products can save you money by preventing “damage from sudden power outages and surges of electricity when the power comes back on.” These surges can damage electronics and appliances. Other savings can come from the prevention of water damage from frozen pipes or failed sump pumps.

Power outages, especially those that last for several days, can cause everything in the refrigerator or freezer to spoil, potentially wasting hundreds of dollars worth of food. Since a whole-house generator can keep appliances running, you won’t need to worry about having to replace all the food in your fridge or freezer.

Peace of Mind

There is something to be said about having peace of mind. If you find yourself constantly stressing about potentially negative outcomes anytime a hurricane, winter storm, or other natural disaster is in the forecast, consider the peace of mind that will come with knowing that your standby generator will be able to keep your power running if anything happens.

Long-Term Benefits of a Standby Generator

Beyond the more immediate benefits of installing a standby generator, there are several long-term advantages to consider. Higher home resale values and lower insurance premiums are among reasons that a whole-house generator can be a wise investment.

Higher Home Resale Value

As discussed earlier, one of the biggest benefits of installing a whole-house generator is the ROI—you could potentially make back up to 150 percent of your investment thanks to an increased home value. “The increased sense of security and reliability is a huge selling point,” says Alvarez. “Homeowners know their property will stay comfortable even during outages, and they’ll avoid costly damage from power surges. The generator also future-proofs the home, since utility grids seem to fail more often.” 

Lower Insurance Premiums

Installing a whole-house generator, such as the KOHLER 26 kW Home Generator, might also result in lower insurance premiums. Many insurance companies view these devices as a proactive measure that can reduce some of the damage that power outages can cause, such as burst pipes or a flooded basement. Check with your home insurance provider to see if they offer any savings or incentives for installing a standby generator.

Lower Emissions

Compared with portable generators that usually run on gasoline, Kohler’s standby generators connect to a home’s natural gas or liquid propane supply, which are considered cleaner fuels. Stricter guidelines have been established regarding allowed emissions and pollutants in many cities across the United States. If your power goes out, you’ll be minimizing your environmental footprint and releasing fewer greenhouse gasses with a Kohler generator. 

The KOHLER 26 kW Home Generator is a wise investment.

Whether you’re looking to increase your home’s value or want the peace of mind of knowing your power will be restored in the event of a natural disaster, you’ll want to consider the KOHLER 26 kW Home Generator. This generator can seamlessly connect to your home’s existing natural gas or liquid propane system, or you can install a residential liquid propane tank if you don’t have a connection to your home. 

Designed to perform in all weather conditions, the generator starts automatically when your home loses power, maintaining power to heating and cooling equipment, appliances, essential medical devices, and more. Once power to your home is restored, the generator automatically transfers the powering of home appliances back to the grid.

Kohler backs this whole-house generator with a 5-year warranty. It’s available in 11 color options as well as three Mossy Oak camouflage patterns to help you customize its looks and better coordinate with your home’s landscaping and exterior design features. To learn more about the KOHLER 26 kW Home Generator or determine which generator size is best for your home, schedule a free consultation with your local Kohler dealer.