Battery Backup Systems vs. Home Generators: Considering Power Outage Solutions in the Face of Increasing Extreme Weather
As extreme weather events become more frequent and severe, the importance of reliable backup power systems has never been more apparent. making the consideration of power outage solutions like home battery backup systems and generators increasingly critical.
Rising Threats from Hurricanes and Wildfires
According to the National Oceanic and Atmospheric Administration (NOAA), the 2024 Atlantic hurricane season is expected to be above normal, with a higher likelihood of significant storms impacting the East Coast, including New England states like Connecticut and Massachusetts. These storms can cause prolonged power outages, disrupting daily life and posing risks to safety and health.
Meanwhile, on the west coast, preparations for the 2024 wildfire season are already underway in Oregon as state leaders anticipate another challenging year. The State Fire Marshal has highlighted the need for enhanced readiness due to expected severe wildfire activity during the peak months of July, August, and September. Wildfires not only threaten homes directly but can also lead to widespread power outages due to damage to infrastructure and preemptive power shutoffs to prevent fire ignitions.
So, no matter what coast you live on, deciding between battery backup storage systems and home generators is especially important right now.
Comparing Home Battery Backup Systems and Home Generators
Home Battery Backup Systems
Pros:
Quiet & Safe Operation: Battery systems are virtually silent, ideal for neighborhoods with noise restrictions. They also are incredibly safe due to state and federal regulations and quality standards.
They Protect Your Solar Investment: If you’ve already made an investment in solar energy that’s great. But, when the power goes out, so does your solar. Batteries complement your solar in a way that a generator can’t. With a battery your panels will continue working because the power they generate has somewhere to go. They will charge your batteries during sun hours and allow you to be temporarily self-sustaining while disconnected from the grid.
Convenience & Smart Home Integration: Home Backup Batteries switch on automatically during a power outage, providing seamless backup power. No setup or fueling necessary. You may not even know the power has gone out until you notice how dark your neighbor’s house is. They can also be controlled via an app and integrate seamlessly into your smart home system.
Low Maintenance Costs: Batteries require minimal maintenance compared to generators, with no fuel refills or regular mechanical upkeep. That combined with a 12 year warranty (for the FranklinWH) you can trust that the cost of batteries practically ends after installation.
Source of Revenue: In states like CT and MA, the utility companies are paying homeowners on average $1,000/year to be allowed to discharge their batteries a handful of times a year during peak delivery hours. This takes pressure of an aging grid and puts extra money in your pocket, a rare win-win.
Cons:
High Initial Cost: The upfront cost for a battery backup system can be significantly higher than a generator. With a 27kW system (two FranklinWH batteries) costing around $25,000 and a comparably sized generator coming in around $15,000. That said, current federal and state incentives have significantly closed the gap, and over a 10 year lifespan it can be argued that batteries may even be cheaper. Read more about the incredible incentives being offered in CT and MA.
Limited Capacity: A single FranklinWH battery is 13.5kW, whereas generators come in sizes all the way up to 48kW. The simple solution is to install multiple batteries, but for some this could be a con. Two batteries is advised for most homes, and with current incentives it’s actually far more cost effective to add the second battery.
Complex Electrical Services: For homeowners with larger than a 200amp service integrating battery backup is more complex. For these homes a generator is likely a better solution.
Works Best with Solar: Without solar panels, once a battery has been discharged there is no way to recharge it while disconnected from the grid meaning you have a finite amount of power available. So, they may be less suitable for long outages or high energy consumption. How long do they last? That depends on how much you plan to have running off of them, but a good rule of thumb is that two batteries (total of 27kW) will last you 24hrs. Make sure to check if your state is offering incentives to homeowners looking to bundle solar with batteries.
Home Generators
Pros:
Higher Power Output: Generators can produce more power, suitable for long outages and higher energy demands. While they can get expensive, generators as large as 48kW are available to homeowners.
Lower Initial Cost: Generators typically cost less upfront compared to battery systems.
Fuel Flexibility: Many generators can run on various fuels, including natural gas, propane, and diesel, providing flexibility during emergencies.
Extended Runtime: As long as fuel is available, generators can run indefinitely, making them reliable for extended outages.
Widely Available: Generators are widely available and can be quickly purchased and installed in most areas.
Cons:
Noise: Generators are noisy and may disturb neighbors or violate noise ordinances.
Maintenance: Generators require regular maintenance, including oil changes, filter replacements, and fuel management. Usually these are done on an annual or semi-annual basis, totally hundreds of dollars a year. Over time these costs add up and might all but erase the up front savings.
Emissions: Generators produce emissions that contribute to air pollution and are not as environmentally friendly as batteries.
Manual Operation: Some generators require manual startup and fuel refills, which can be inconvenient during an outage.
Fuel Storage: The reality is you can’t always make a fuel run the day of an outage, as severe weather makes it unsafe to travel. Storing fuel can be hazardous and requires additional safety measures.
Price Comparison
Battery Backup Systems: The initial cost for a battery backup system, including installation, typically ranges from $15,000 to $30,000. However, prices can vary based on capacity, brand, integration with solar panels, and how many of the state incentives you qualify for. Batteries have a couple more tricks up their sleeves that factor into the long-term cost of owning a system.
First, the utility companies in CT and MA will actually pay you in order to borrow energy from your battery during peak delivery hours. This Utility Dispatch Program is 5 years in MA, and 10 years in CT, and with the average homeowner getting paid $1,000/year that adds up.
Second, batteries along you to buy energy when it’s cheap, and then switch to using battery power during peak hours when energy is more expensive. Many battery owners utilize this hack to further save on their energy usage.
And lastly, a big argument for the cost of batteries is what’s missing, and that’s fuel and maintenance.
Home Generators: The cost for a standby generator, including installation, usually ranges from $10,000 to $15,000, depending on size and features. While the sticker price is significantly less than battery systems, the lifetime cost of owning and using a generator is dependent on fuel costs, and year over year maintenance needs.
Key Takeaways
Don’t let the sticker price scare you. Depending on where you live, and whether you already have solar, a home battery backup system is worth exploring. Once all state and federal incentives have been applied the cost becomes very comparable to a generator and can even prove more affordable in the long run. And when paired with solar, batteries give you something generators can’t, a way of protecting your investment in solar and giving you a self-regenerating energy solution when you’re disconnected from the grid.
Additional Factors:
Size and Space Requirements
Battery Backup Systems: These systems are compact and can be wall-mounted or placed in a small space indoors or outdoors. They require less space than generators.
Home Generators: Generators are larger and usually installed outdoors on a concrete pad, requiring more space.
Warranty
Battery Backup Systems: Typically come with a warranty of 10 years or more, covering performance and defects.
Home Generators: Warranties generally range from 2 to 5 years, depending on the manufacturer and model.
Do you already have solar panels on your home?
For those of you who have an existing solar array, or want to install solar, batteries become much more attractive as combining solar panels with a battery backup system offers numerous advantages:
Energy Independence: Solar panels charge the batteries, reducing reliance on the grid and ensuring power during outages.
Cost Savings: Excess solar energy stored in batteries can be used during peak hours, lowering electricity bills.
Environmental Impact: Utilizing solar energy reduces carbon emissions and promotes sustainable energy use.
Increased Resilience: A solar and battery system can provide continuous power during prolonged outages, unlike generators that rely on fuel availability.
Incentives: Many regions offer incentives, rebates, and tax credits for installing solar panels and battery systems, reducing the overall cost.
Conclusion
With the increasing frequency and severity of extreme weather events, investing in a reliable backup power system is essential. Home battery backup systems and generators each have their pros and cons, and the best choice depends on individual needs, budget, and environmental considerations. By carefully evaluating these factors, homeowners can ensure they are prepared for power outages and can maintain safety and comfort during extreme weather events.
Talk to one of our energy experts to find out if your home is a good fit for solar and batteries. We’d love to help you make an informed decision in your quest for peace of mind and energy independence.