Thinking about a home generator?
Why Combining Solar with a Generator Might Be Your Best Choice
Recent wildfires and prolonged blackouts have caused a spike in demand for home generators across Los Angeles County. Media outlets have reported real-life cases where homeowners used gas-powered generators to keep water pumps and sprinkler systems running — successfully protecting their properties from wildfire damage. However, any defense system is only as reliable as its backup power source.
Let's compare the economics before you decide.
Generator Add-on
| Item | Notes | Cost |
|---|---|---|
| Generator 22 kWh | Whole-home or partial backup, price for the unit | $7,000.00 |
| Installation + Labor | Typical Installation Cost (Gas Extension, Trenching, Foundation, Electrical) | $15,000.00 |
| Total: | $-22,000.00 | |
| Annual Fuel Costs | 60 Hrs/Year (2.5 days run per year) on Natural Gas (50% Load = 10 kWh) | $199.59 |
| Annual Maintenance | Includes Oil, Air Filter, Car battery replacement every 4 years, Basic CheckUp | $300.00 |
| 1st Year | Running Costs and Fuel: $499.59 | $ -22,499.59 |
| 3rd Year | Inflation-adj.: $535.75 | $ -23,552.70 |
| 5th Year | Inflation-adj.: $574.54 | $ -24,932.06 |
| 10th Year | Inflation-adj.: $684.29 | $ -28,376.36 |
| 14th Year | Inflation-adj.: $787.04 | $ -31,365.92 |
Calculations based on:
- 60 Hrs/Year (2.5 days run per year) on Natural Gas (50% Load = 10 kWh);
- Natural Gas Prices (Dollars per Thousand Cubic Feet): $14.59 on first year, adjusted annually by the US avg. Nat.Gas inflation 3.34%/Yr;
- services inflation 3.7%/Yr
Solar + Battery Add-on
| Item | Notes | Cost |
|---|---|---|
| Solar PV Modules | PV System Size 7-9 kWh (at peak hours) | $10,000.00 |
| Transfer-switch, iverter, battery | 10-13 kWh Capacity | $16,000.00 |
| Installation + Electrical | $12,000.00 | |
| Total: | $-38,000.00 | |
| Annual Maintenance | Cleaning (once per 3Yrs), other services | $300.00 |
| Federal Tax Credit* | 30% (2025):$ +11,400.00 | $ -26,600.00 |
| 1st Year | Energy Bill Savings (zero maintenance):$ +1,683.00 | $ -24,917.00 |
| 3rd Year | Energy Bill Savings ($1,844.92) - Maintenance ($322.61):$ +1,522.31 | $ -21,943.69 |
| 5th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +1,675.49 | $ -18,671.11 |
| 10th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +2,128.47 | $ -8,977.59 |
| 14th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +2,576.56 | $ +630.02 |
Calculations based on:
- Spending on electricity bills without solar $63,345.14 for 14 years;
- Average household consumption in US: 11 000 kWh/Yr (11 MWh/Yr);
- 42 % imports from grid, 58% consumes from solar and battery;
- Avg. price: $0.35/kWh in the first year (including fees and taxes), adjusted annually by the U.S. average energy inflation rate of 4.7%;
- Services inflation 3.7%/Yr.
- Utility export credits were excluded due to their unpredictable value and case-by-case variability. Consider them an added bonus — not a guaranteed return.
* This information is general guidance only. Please consult a tax advisor regarding your specific situation.
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Conclusion: Solar + Battery is the Smart Long-Term Choice
- Although solar + battery systems have higher initial costs, they quickly (on the 3rd Year of ownership) surpass generators in financial returns and value;
- Within 10 years, Solar + Battery can save you over $20,000 compared to a generator-only solution. By year 14, your solar investment typically pays for itself and begins generating pure savings;
- 30% Federal Tax Credit: Now available only until December 31, 2025.
- Don't underestimate inflation - plan your system design accordingly;
- While the payback period for solar systems is no longer 5-6 years like it once was, it still delivers long-term value.
- Think of solar as an investment in stability - what you gain goes beyond money: energy independence, resilience during blackouts, and long-term protection from rising utility costs.
Suppose your home is equipped with an EV charger and high-energy appliances like a big HVAC system or pool pump. This means your household likely consumes twice the average electricity—around 20,000 kWh per year (your bill should be around $500-$600 per month).
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Solar + Battery
(same size 7-9 kWh PV + 10-13 kWh battery)
| Item | Notes | Cost |
|---|---|---|
| Solar on Roof | PV System Size 7-9 kWh (at peak hours) | $10,000.00 |
| Transfer-switch, iverter, battery | 10-13 kWh Capacity | $16,000.00 |
| Installation + Electrical | $12,000.00 | |
| Total: | $-38,000.00 | |
| Annual Maintenance | Cleaning (once per 3Yrs), other services | $300.00 |
| Federal Tax Credit* | 30% (2025):$ +11,400.00 | $ -26,600.00 |
| 1st Year | Energy Bill Savings (zero Maintenance):$ +2,500.00 | $ -24,100.00 |
| 3rd Year | Bill Savings ($2,740.50) - Maintenance ($322.61):$ +2,417.91 | $ -19,375.69 |
| 5th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +3,004.19 | $ -14,183.65 |
| 10th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +3,779.72 | $ +1,155.78 |
Calculations based on:
- Spending on electricity bills without solar $74,418.97 for 10 years;
- Household's consumption: 20 000 kWh/Yr (20 MWh/Yr);
- 50 % imports from grid, 50% consumes from solar and battery;
- Avg. price: $0.35/kWh in the first year (including fees and taxes), adjusted annually by the U.S. average energy inflation rate of 4.7%;
- Services inflation 3.7%/Yr.
- Utility export credits were excluded due to their unpredictable value and case-by-case variability. Consider them an added bonus — not a guaranteed return.
* This information is general guidance only. Please consult a tax advisor regarding your specific situation.
Solar + Battery
(larger size 10-15 kWh PV + 20-26 kWh batteries)
| Item | Notes | Cost |
|---|---|---|
| Solar on Roof | PV System Size 10-15 kWh (at peak hours) | $14,000.00 |
| Transfer-switch, iverter, batteries | 20-26 kWh Capacity | $30,000.00 |
| Installation + Electrical | $18,000.00 | |
| Total: | $-62,000.00 | |
| Annual Maintenance | Cleaning (once per 3Yrs), other services | $500.00 |
| Federal Tax Credit* | 30% (2025):$ +18,600.00 | $ -43,400.00 |
| 1st Year | Energy Bill Savings (zero maintenance):$ +3,060.00 | $ -40,340.00 |
| 3rd Year | Energy Bill Savings ($3,354.40) - Maintenance ($537.70):$ +2,816.72 | $ -34,837.96 |
| 5th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +3098.91 | $ -28,784.57 |
| 10th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +3,932.99 | $ -10866.52 |
| 13th Year | Bill Savings (Inflation-adj.) - Maintenance:$ +4,536.60 | $ +2,120.67 |
Calculations based on:
- Spending on electricity bills without solar $115,172.99 for 14 years;
- Household's consumption: 20 000 kWh/Yr (20 MWh/Yr);
- 42 % imports from grid, 58% consumes from solar and battery;
- Avg. price: $0.35/kWh in the first year (including fees and taxes), adjusted annually by the U.S. average energy inflation rate of 4.7%;
- Services inflation 3.7%/Yr.
- Utility export credits were excluded due to their unpredictable value and case-by-case variability. Consider them an added bonus — not a guaranteed return.
* This information is general guidance only. Please consult a tax advisor regarding your specific situation.
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Conclusion: Solar + Battery Becomes Even More Attractive as Your Energy Demand Exceeds the Average
- Even with grid imports at 50%, a Solar + Battery system can pay off in just 10 years—around 4 years faster than average. That's because saving 50% of a larger electricity bill brings greater financial return. This projection assumes disciplined power usage, with grid imports kept at or below 50%.
- A household without solar and battery storage that consumes 20,000 kWh annually will spend approximately $74,419 over 10 years-and $115,173 over 14 years—on electricity, based on average utility rates in California.
- The payback period remains similar—about 13 to 14 years—for both an average household using 10,000 kWh per year (with a system cost of $38,000) and a high-usage household consuming 20,000 kWh annually (with a system cost of $62,000).
The generator remains an essential backup power source
during emergencies
and
nighttime blackouts
when solar isn't available and battery storage has been depleted.
Smart Move:
- Electrical costs involved in adding a generator overlap with solar installation, allowing you to reduce or optimize expenses when planning both systems together.
- The 30% Clean Energy Tax Credit only applies to systems that include solar panels, battery storage, or other clean energy technologies. That means a generator by itself doesn't qualify — but when it's integrated into a solar setup, the entire system may pay for itself over time.
Additional benefit:
No extra spending on separate smart-management devices is necessary — a single solar app can monitor your generator. During outages, it automatically prioritizes power from solar panels first, switches to battery storage next, and only starts the generator after the battery is depleted.
Obvious, but worth mentioning:
Generator produces noise and exhaust fumes - not ideal for every home or neighborhood. Solar + Battery systems greatly reduce these issues, allowing your generator to serve strictly as a “last-resort” backup option.
Real-World Data
All calculations are based on hundreds real projects - not salesy claims like “less than $2.00 per watt.”
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