How Backup Power Can Save You Money—and Even Pay You Back
Investing in a standby generator is often seen as a precautionary measure—something you install to protect your home or business during a power outage. But what if your generator could do more than just keep the lights on? What if it could actually save you money—or even generate a return on your investment?
Let’s explore how a standby generator can provide not only peace of mind but tangible financial benefits as well.
Why Install a Standby Generator?
When the power goes out, everything stops—your heating, cooling, refrigeration, internet, and in many cases, your business operations. Having a standby generator ensures these systems keep running without interruption.
Consider this real-world example:
In 2020, Utah experienced both a 5.7-magnitude earthquake and a powerful windstorm within a few months. Thousands of homes and businesses lost power—some for days. Portable generators flew off store shelves, and many homeowners were left without power, hot water, or refrigeration. Those with standby generators? Business as usual.
In an increasingly unstable climate and aging power grid, reliable backup power is no longer a luxury—it’s a strategic asset.
Can a Standby Generator Add Value to Your Property?
Yes—and in more ways than one.
-
Increased Resale Value: A 2014 Remodeling Magazine report found that in outage-prone regions, standby generators can yield up to a 150% return on investment at resale.
-
Added Market Appeal: According to Generator Advisor, a standby generator can boost property value by 5% or more, even in areas with infrequent outages.
-
Insurance Discounts: Many homeowner’s insurance providers offer “loss mitigation” discounts for homes equipped with standby power. Why? A powered home is less likely to be vacated during storms, reducing risks of looting or property damage.
Can a Standby Generator Save You Money?
Absolutely. Beyond insurance perks, generators can provide value in other, often overlooked, ways:
1. Utility Company Incentives – Demand Response Programs
Some power providers offer programs that allow homes and businesses with standby generators to contribute during peak demand. Here’s how it works:
-
Your utility temporarily transfers your power load to your generator.
-
This helps them avoid blackouts during peak times.
-
You get credited on your energy bill for the energy your generator supplies.
These “demand response” programs were once limited to commercial accounts but are now expanding to include residential customers—a win-win for both you and the grid.
2. Business Continuity
For business owners, power outages translate directly into lost revenue. A standby generator can:
-
Keep operations running without interruption
-
Preserve inventory and equipment
-
Ensure employee safety and comfort
-
Maintain client trust by staying open while competitors go dark
In today’s always-on economy, uninterrupted uptime is a competitive advantage.
So… Can a Generator Actually Make You Money?
While a generator won’t directly deposit cash into your bank account, its ability to reduce losses, unlock savings, qualify you for credits, and preserve property value makes it a powerful financial tool. When installed strategically, your generator becomes more than just a backup—it becomes an asset.
Final Thoughts
A standby generator is no longer just about emergency preparedness—it’s about smart investing. Whether you’re a homeowner looking to protect your family or a business owner aiming for resilience, the right generator can give you peace of mind and a real financial edge.