Home Battery vs Generator: What delivers better back-up power for your buck?

The world is changing quickly, and so are the ways we power our homes and businesses. Not so long ago, if you wanted to be protected from a power outage, the answer was simple: get a generator. But today, with advancements in battery technology, increases in manufacturing capacity (driven by EVs) and demand for more sustainable solutions, we now have smarter, cleaner and affordable alternatives to traditional back-up!

Let’s start with the numbers 
At first glance, the cost of a generator and a battery system might seem similar—around $10,000 for a simple residential system.* However,  you need to dig deeper to understand the true costs to find the best solution for you!

For example, a typical house draws a daily average of 1.5kWh per hour. Fuel costs about $1.80 CAD per litre and a generator burns about 4 litres of fuel per hour, or $7.20 per hour. In contrast, an EG4 Indoor 14.4kWh battery can be recharged from the grid in British Columbia for about $0.11 per kWh. Vancouver’s electricity rates are among the lowest in North America, but even in California, where electricity costs are 3-4 times more ($0.30/kWh), a comparable battery system is still significantly cheaper than the fuel expense of a generator.  And that’s just the fuel…

Then you need to consider maintenance
Residential backup generators, commonly known as “standby” generators, typically come with limited warranties—often around five years—and using them for purposes beyond standby power can void these warranties. They require annual maintenance even if not in use, and oil changes every 50 hours of operation, which can add up to hundreds of dollars each year. For generators that run on gasoline, it’s important to replace the fuel every six months to prevent ethanol additives from gumming up the engine. While natural gas and liquid propane generators don’t have this particular problem, battery systems offer several advantages: they require no maintenance, have no smell, operate silently, and are generally cheaper and easier to install.

Generators are loud and gassy, and bad for the environment! 
We can’t talk about generators versus batteries without addressing the elephant in the room: emissions. Generators burn fossil fuels, releasing carbon dioxide and pollutants into the air. They are noisy, smelly, and certainly not something your neighbors really want to hear running all night. 

Batteries, on the other hand, operate silently and produce no emissions. When paired with solar panels, they become a fully renewable solution, helping reduce your carbon footprint while keeping your lights on. Thanks to the increasing production of lithium-ion batteries for electric vehicles, recycling technologies have advanced, and many components of these batteries are now recyclable, contributing to a more sustainable energy ecosystem.

Batteries save you money on your electric bill
Here’s where batteries really shine: They do more than just sit idle, waiting for an outage. If you’re connected to the grid, you can use your battery to store power during off-peak hours and draw from it during expensive peak times. In places with net metering or self-generation programs (which includes most provinces in Canada and several U.S. states), you can sell excess power back to the grid, turning your battery into a revenue generator. In some places, the utility will actually pay you if you discharge your battery during times of high grid congestion (mostly during extreme temperature swings).

A generator, by contrast, is a one-trick pony. It powers your home during an outage and otherwise sits idle.

What About Prolonged Outages?
While some argue that generators are better for extended outages because they can run indefinitely with enough fuel, consider this: a home battery system can keep your essential devices running for several days on a single charge. You can expand your battery capacity as much as you need, but if you live in an area prone to multi-day outages during the dark days of winter, it might make sense to pair batteries with a smaller, cheaper generator. In such situations, you can use the generator to recharge the batteries for a few hours and then shut it down. This hybrid approach not only stretches your fuel supply but also reduces noise, emissions, and wear and tear on the generator.

There has never been a better time to install a renewable energy system:
Many provinces like British Columbia and Ontario as well as states like California, Massachusetts and Minnesota offer incentives to reduce the capital cost to install. Not only do home batteries provide you with back-up power when you need it, they help shave the peaks, reduce grid congestion and lower emissions.

Cost Comparison
Example: Generator vs. Battery Install in British Columbia

Ask us more about which backup system is best for you! Send us a message at [email protected]

* Note: install costs may vary depending on site requirements, permitting and contractors. 

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Sources 
https://www.bpmelectric.com/how-much-is-electricity-in-vancouver/