How Much Does a Natural Gas Generator Cost?
Typical Range:
$3,000 - $26,000
Cost data is based on research by HomeAdvisor.
Published November 10, 2022
Written by HomeAdvisor.A natural gas generator costs $9,000 on average, or $3,000 to $26,000. You’ll pay a bit more for installation; there are no portable natural gas generators. But, it tends to be the least expensive energy source outside of solar, making it cost-effective over the long term. But, it requires tapping into a gas line already running to your home or installing a new one.
Natural gas generators, since they require a gas line run to them, are usually stationary backup and whole home generators. They aren’t portable. You’ll likely be looking into this type of generator if you already have a gas line running to your home. If you don’t have one, consider natural gas line installation costs. It’s often more cost-effective to simply install a propane or diesel generator as you can’t store natural gas in a tank at home.
Average Natural Gas Generator Costs
| Average Cost | High Cost | Low Cost |
|---|---|---|
| $9,000 | $26,000 | $3,500 |
Natural Gas Generator Cost per Kilowatt
Natural gas generator prices range from $2,000 to $21,000, for the unit itself, not including any labor or other materials to install it. The price for almost any generator depends on the amount of power it can produce, which is measured in kilowatts. For a backup generator, you’ll want around 7.5 kilowatts, while a whole house uses between 12 and 24 kilowatts.
| Kilowatt Range | Natural Gas Generator Prices* |
|---|---|
| 7.5 – 10 | $2,000 – $4,000 |
| 10 – 20 | $4,000 – $5,800 |
| 20 – 30 | $5,600 – $13,500 |
| 30 – 40 | $12,300 – $15,500 |
| 40+ | $15,500 – $21,000 |
*Unit price only, not including labor or installation materials
Natural Gas Whole House Generators vs. Backup
Natural gas generators cost $2,000 to $21,000 but vary a bit within that depending on the type of generator you get. Backup generators tend to represent the lower end of the power generation and cost spectrum since they only back up your home’s necessary circuits, like for your fridge and heating. Whole home generators keep every circuit in your home going and tend to put out more power, use more fuel, and cost the most.
| Generator Type | Average Cost | Use |
|---|---|---|
| Backup | $3,000 – $10,000 | Up to 10 kilowatts and powers just critical systems |
| Whole House | $5,600 – $26,000 | Powers the entire home continuously |
Backup
Backup natural gas generators, which cost $3,000 to $10,000 including installation costs, run your home’s critical systems. They usually keep the lights on and the refrigerator going so your food won’t spoil and you can continue working or relaxing as desired. However, it generally won’t run all the appliances in your home, such as the washer, dryer, and air conditioner.
Whole-House
A whole-house natural gas generator costs $5,600 to $26,000, including the unit and installation, and power everything in your home. Their size enables them to run all of your appliances, keeping the water hot, the lights on, and the air conditioning running.
Natural Gas Generator Cost Breakdown
Installing a natural gas generator costs $1,500 to $5,000 in materials and labor, not including the generator itself. This cost covers things like the concrete pad, adding a gas line, and any electrical lines from your home to the unit.
Materials
Materials cost anywhere from $1,000 to $3,000 and include a few things you’ll likely need for your project, including:
Concrete for a pad or footings
Electrical line(s) to run from the generator to your home
Gas lines
Equipment to put it in place
Labor
You’ll pay anywhere from $500 to $2,000 to install a generator. In some extreme cases, you may pay more, such as in remote areas or for an installation in a hard-to-access location.
Other Natural Gas Generator Cost Factors
Besides basic materials and labor, you’ll want to consider these factors as part of your upcoming natural gas generator project. You’ll need to:
Pull a permit
Install a transfer switch
Consider how the operating costs offset permits, taxes, shipping, and installing a new gas line
Transfer switch
A transfer switch costs around $800 to $2,000 to install. You’ll need one that automatically or manually transfers incoming power from the local power grid to your generator. Many have onboard sensing to sync with your generator, transferring power automatically in the event of a power failure.
Shipping
Most generators are large, heavy, and aren’t stocked locally. You’ll likely need to have one shipped to your home if you don’t purchase it through your pro. Shipping varies by place, company, and distance. Usually, the company you buy your generator from will take care of shipping but adds it to your order. f
Permits
You’ll need a permit to install a generator since it requires installing electrical and gas lines. Permits cost $400 and up, depending on your location. Check with your local building authority.
Operating Costs
It costs an average of $90 per day for a natural gas generator running with 21kW of power continuously. It’s less than half the price to run any other type of generator, except solar. Solar panel installation costs are twice a natural gas unit, but solar eventually pays for itself over time.
Installing a New Natural Gas Line
A new gas line costs $300 to $1,000 if you already have gas piped to your home. If you’re looking to install one from a nearby main, you’ll pay $2,000 or more.
DIY Natural Gas Generator Installation vs. Hiring a Pro
You’ll want to hire a professional to at least hook up the gas and electrical lines to your natural gas generator. However, you may be able to save a small amount of money by installing the concrete pad and placing the unit yourself. Even if you go that route, always check with a professional first to see if the spot you've chosen is best for the generator. It’s often more efficient and much safer to hire a local generator installation professional.
Consider things like:
Sound
Exhaust
Landscaping
Ease of access for maintenance
Location relative to your electrical panel and gas lines
FAQs
How much does it cost to run a natural gas generator?
It’ll cost you about $0.50 to $3 per hour to run a natural gas generator, depending on the size of your system. For a 10kW generator, you’ll spend about $40 to $50 per day if you run it continuously. The running load of the generator factors into the actual cost rather than its total available output, since it’ll cost slightly less if it’s not working quite as hard.
How long can a natural gas generator run continuously?
You can run most generators between 500 and 3,000 hours continuously. However, it’s often a good idea to shut it down for short periods to let it cool, check the oil levels, and perform any maintenance. Over time, a generator can go through the oil it needs to run smoothly and can also overheat, causing premature failure of the unit. If you need continuous power, you can install two units, running one at a time.
What is the life expectancy of a natural gas generator?
A natural gas generator's lifespan is 15 to 30 years. However, that number varies quite a bit since it’s more about how often you use the unit, maintenance, and location. A generator along the salty coast environment might rust out in a few years, while a rarely used generator in a dry, moderate climate might last 50 years or more.
