Costs and Additional Considerations When Installing a New Generator

13th February 2026
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When the first winter storm rolls in, you don’t want to sit in the dark wishing you had a backup generator installed. But what does installing a new generator involve beyond the initial price tag?

Well, the price of the unit is just the beginning. There are many other factors to consider that can impact the overall cost and process. For example, did you know that you might need a concrete pad to keep your generator stable? Or that you may need special permits from your local council?

In this guide, we’ll cover everything you need to know about installing a generator. We’ll also discuss hidden generator costs like professional installation, regular maintenance, and possible upgrades to your electrical system. We’ll also touch on important things to consider, like where to place the generator, how loud it will be, and what kind of warranty you’ll need.

By the end, you’ll have a clear picture of what to expect and how to make the best choice for your home or business.

Which factors affect generator installation costs?

Generator installation costs can vary, with the type of generator, its size and where you plan to install it being the main factors. Let’s explore each in more detail.

Generator type

Generally speaking, there are two generator types available. Each offers unique benefits; your choice depends on how and when you use the generator.

Standby generator

Standby generators are usually installed in homes or businesses, providing backup support in a power outage. Modern models have an automatic transfer switch, seamlessly transitioning from prime to standby power.

You’ll usually spend more on a backup generator, as they’re stationary and offer an uninterruptible power supply.

Portable generator

Portable generators are smaller than their standby counterparts, making them ideal for camping trips and powering off-grid equipment.

While they’re convenient and can support prime power applications, portable generators are best for travel. Because they are smaller than standby models, they have lower price points.

Generator cost by size

The size of your generator also impacts its price. Most generators are measured in kW and kVA, and the capacity you choose depends on your home or business size.

While it’s tempting to opt for a smaller generator to save money, if you power industrial equipment or have large-scale lighting needs, it’s best to choose a generator that meets those needs.

Small Generators (5-10 kW):

  • Best for small homes or low-scale power requirements
  • The costs can go up to £10,000 or more depending on the model you choose
  • Ideal for powering essential appliances or equipment for off-grid applications

Medium Generators (10-20 kW):

  • Best for medium-sized homes and small businesses
  • 20kW generators can cost over £11,000 depending on their features
  • Medium generators can power homes and businesses with multiple appliances, air conditioning and heating needs

Large Generators (20-50 kW):

  • Best for large homes and medium businesses
  • A 50kW generator can cost over £15,000
  • Ideal for handling large loads and maintaining operations in a power outage

Commercial Generators (50 kW and above):

  • Best for large businesses and industrial applications
  • Cost between £15,000 and over £100,000 depending on your chosen model
  • Best for extensive power needs and continuous usage

Generator cost by fuel type

The type of fuel a generator uses determines its ongoing operating expenses and initial costs. Your fuel choice depends on whether you use a portable or standby generator and if you have access to a gas supply line.

Gasoline

Gasoline is popular for portable generators and it’s the least expensive option to purchase. On the downside, it lacks energy efficiency and can cost more to run. If you’re using a portable generator, gasoline is highly accessible and suits short-term usage needs.

Diesel

Most standby generators use diesel due to its superior fuel efficiency and extended shelf life. Opting for a diesel generator also means you can use red fuel, which offers the same benefits but is cheaper. Diesel generators also power large-scale commercial operations.

Natural gas

Natural gas generators don’t need refuelling, as they connect to your gas supply lines. While natural gas is cheaper to run, these generators are more expensive to install, as they need a constant supply. If your home or business has the right setup, you could benefit from a natural gas generator.

Propane

Propane generators have similar price points to natural gas models. You’ll pay more for propane initially, but its longer shelf life often justifies the outright costs. If you don’t use the generator frequently, propane can be a good choice.

Solar

Solar generators aren’t as popular as other models but offer some benefits. They use solar energy to produce power and don’t require fuel. The main drawback is inconsistency, especially for larger properties that require extensive power.

Generator installation costs

The generator installation costs depend on numerous factors, including the model you choose and where you install it. Portable generators don’t require installation, making them cheaper, but standby generators offer consistent backup support.

Standby generator installations might require electric work and plumbing to fit the fuel line.

DIY or professional installation?

It can be tempting to install a new generator yourself, but opting for a professional service ensures the generator is installed correctly.

A team of experienced generator engineers can support you throughout the process, including finding the right place and fitting the electrical connections. Yes, it costs more initially, but generator installation services ensure your home or business benefits from a continuous power supply.

Site preparation

If your installation team needs to prepare the site before installation, it will increase costs. For example, they might need to fit a concrete plinth or perform electrical installation work to fit the generator.

Accessibility also factors your expenses, as hard-to-reach locations might require more preparation work.

Features and permits

Most modern generators have advanced features, including an accessible fuel tank, noise-proof enclosures, automatic transfer switches, and a control panel system. If you choose a cheaper model and want to add these features, you’ll need to pay more.

If you’re installing an industrial generator, you might need to apply for permits and undergo inspections to ensure you’re aligning with health and safety regulations.

Other considerations when installing prime and standby generators:

  • Generator Delivery: Large industrial generators require delivery, which can add to your expenses. It depends on generator size and whether you require associated equipment for installation.
  • Maintenance: Whether you get a generator for your home or business, maintenance and repairs maintain functionality. Choosing a professional maintenance service gives you access to skilled electrical engineers who maintain the generator and ensure it activates instantly when your building loses mains power access.
  • Load Testing: Load testing can identify any issues with the generator and mitigate them before you have to run critical loads. It also helps you determine how much power the generator can provide. Investing in load bank testing services isn’t essential but can be beneficial.
  • Fuel Contamination: Contaminated fuel can cause significant damage to your generator and external fuel tank. Many businesses need fuel contamination support to fix the issue, which can result in expenses. On the plus side, it’s much cheaper than replacing your generator.

Protect your home or business in a power outage

Investing in a generator keeps vital equipment and appliances running, safeguarding your property from power cuts. While fitting a standby generator can be a complex process, an installation professional will support you throughout and ensure your chosen model offers a seamless performance.

If you’re interested in diesel generators, Solent Power has a complete range of high-performance models from reputable manufacturers. Whether you’re looking for a residential generator that ensures power protection or want to maintain industrial operations, we can help.

Please contact our generator sales team for more information.

Paul Phelps Solar Power Owner
Paul Phelps
Paul is the MD of Solent Power and specialises in emergency power solutions, helping to protect your facilities from power loss. Get in touch with us today to discuss the different power brands that we can offer and how they can suit your needs.
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