Home batteries vs. generators: Which is right for you?

When the power goes out, you have two main options for backup power: a traditional generator or a home battery system. Both will keep your lights on and your refrigerator running, but they work very differently.

Historically, most people have relied on propane, diesel, and natural gas-powered generators for backup power during outages. These days, more homeowners are choosing home backup batteries—a cleaner alternative that can offer additional financial benefits beyond just emergency power.

Solar battery systems provide many of the same backup power functions as conventional generators, but can run on clean energy instead of fossil fuels. The choice comes down to more than just emergency preparedness—it's also about ongoing costs, maintenance, and whether you want a system that only works during outages or one that can save you money year-round.

There are two primary reasons that homeowners have historically opted for generators as a backup solution: They cost less upfront and, in the past, they've been easy to find and setup. You can frequently buy backup generators at home improvement stores, and some might not even need to be installed by an electrician. 

But generators aren't perfect. And batteries are increasing in popularity.

Generators are the way of the past

Generators come with several downsides: 

• You need fossil fuel on hand to power them, which can be problematic during unexpected outages.

• Generators are large, loud machines that shouldn't run every day and require regular maintenance, meaning you only benefit from having them in the event of an outage.

• Generators cause significant local pollution by burning fossil fuels, including carbon monoxide.

Are batteries the future?

Batteries aren't perfect. They're more expensive upfront and require an electrician to install. But they solve most of the issues that can sometimes plague backup generators.

• When paired with solar panels, the renewable resource that is the sun powers batteries.

• Batteries are eligible for incentives like tax credits and rebates, which can significantly lower those upfront costs.

• Batteries can run entirely on clean, renewable solar power—and they won’t emit pollutants around your home.

The cost of installing a generator to provide backup power for your home or business depends on the amount of power you need and the equipment you choose. Typically, it costs around $7,000. 

By comparison, a 13.5 kilowatt-hour (kWh) home backup battery costs about $9,400 after incentives. If you want whole-home power, you'll need more storage than that.

The average net upfront cost of a solar-plus-storage system is around $30,000 based on the following calculation:

$29,360 (11 kW solar panel system) - $8,808 (solar tax credit) + $13,487 (13.5 kWh battery) - $4,046 (battery tax credit) = $29,993

Important update on federal incentives: If you're considering a battery system, time is running out to maximize your savings. Congress recently passed legislation ending the 30% federal solar tax credit on December 31, 2025—nearly a decade ahead of schedule. This means you have until the end of 2025 to install solar and battery systems and claim this significants savings. After 2025, the credit disappears entirely, making these systems substantially more expensive.

Total cost over 20 years: Solar + storage vs. natural gas generator

*Assuming a current monthly electric bill of $150

**Assuming tax credits and battery pricing remain the same as today

Table sources: EnergySage, HomeAdvisor, Home Depot

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