Something like backup power can take homeowners awhile to consider. But severe weather, vulnerable utilities and complete blackouts causing lengthy and inconvenient power outages seem to be increasingly more common than ever before. And unfortunately, more homeowners are experiencing the fragility and vulnerabilities of an overused electrical system and they’re seeking options.
Putting inconveniences aside, it’s rather unnerving to be left in the dark, worrying about keeping food frozen and refrigerated, or flooded basements, or being unproductive if working from home. These scenarios are sound reasons why an increasing number of homeowners are turning to standby generators. Interest is even greater from homeowners living in regions hit by constant storms or power failures, or in areas that are in “rolling brownout” situations.
“These last few years of hurricanes and blackouts have really helped ‘tip’ the standby power category,” says Mike Brown, CEO, Michael C. Brown Custom Builders in Williamsburg, Virginia. “About half of our homebuyers are coming in asking about backup power. And if our customers don’t bring it up, we do.”
Brown says about 80 percent of the new homes he builds have backup generators, usually starting at 12 or 15 kilowatts, that will power sump pumps, lights, refrigerator and freezer, and several other appliances.
“We’re all more reliant on power than ever, and many people are purchasing generators 30kW and larger, which is like their own little power plant,” says Brown. “Many homeowners don’t want to be without air conditioning and satellite television, even during a blackout or power outage.”
David Smoots, director of sales for Simonini Builders in Charlotte, North Carolina, especially encourages his customers to consider a generator if they’re including sophisticated appliances and gadgets, or investing heavily in their basement areas.
“There’s tremendous value just having peace of mind that if the power goes out, your home is still up and running. But homeowners also think of the generator as insurance, and a flooded basement costs a lot more to repair than purchasing a backup generator.”
When homeowners decide to have their basements finished at the time of build, Smoots says a standby power system is easy to sell.
“Generators aren’t just going into the million-dollar homes; any portion of a home built below grade should be a concern,” Smoots said. Sump pumps, freezers, home-theater systems, computers and wine cellars are just a few of the items typically in the basement level. “The basement is oftentimes the largest portion of the home, but also a room that goes unused a few days or more. Whether they’re home or away, if their standby generator is wired to power those items during an electrical failure, they have nothing to worry about.”
Backup power system components

Chris Rhule, of Premier Power Generation in North Carolina, has been selling standby generators for several years and is impressed with the improvements manufacturers have made over time. Many of the smaller standby units no longer require a cement pad to be poured because the manufacturers have included a mounted base with the unit, helping to reduce installation costs. Reductions in sound levels, emissions, size and price have also occurred, making generators more attractive to homeowners than before. Most systems will also “self exercise” on a weekly basis to ensure proper operation. The generator (without load) will run for a few minutes each week, on the day and time established by the homeowner.
Most standby systems consist of the generator (ranging in size from 8kW to 100kW) and system components such as the automatic transfer switch, battery charger and distribution panel. However, there are a couple of manufacturers now offering a new electrical load distribution enclosure and automatic transfer switch into one package.Such a two-in-one load center can make less work for builders and electrical contractors involved in new home construction, and provide the new homeowner a generator-ready residence.
The brain of backup power systems is the ATS, or the automatic transfer switch, which continually monitors the utility power for interruption. If utility power fails, the transfer switch automatically starts the standby unit within seconds, transfers the electrical loads and restores the electricity to the home. The generator will also start when the ATS senses power levels dipping below 80 percent of normal utility output.
When the utility power resumes, the ATS reverses the process. The switch transfers the loads back to the utility, and signals the generator to cool down and finally shut off after a few minutes.
A limited number of residential standby generator brands now feature digital control, which features a compact controller integrally mounted to the generator set, and provides precise voltage and frequency regulation to better support today’s sophisticated home electronics. An LED screen can display runtime hours, crank cycle status, and several other diagnostic faults. Such controls provide service benefits to the consumer, who can view their LED screen and often just call their local contractor or dealer and relay the information via phone – possibly avoiding a service visit.
Product and installation costs
Standby generators smaller than 15kW can run about $6,000, including installation. While most standby generators can be installed at the time of new construction or retrofitted into existing homes, homeowners can realize a significant cost-savings when they pre-wire their home for a generator during the construction phase. When the time is right, the homeowner contacts a local generator dealer or electrical contractor for installation.
Several factors can affect the installation costs. The location of the gas meter and electrical meter in relation to where the generator equipment sits is one factor. The farther the generator is installed from the home means trenching and additional piping are necessary, and pipe sizes and materials increase over these distances.
A larger gas meter may be required if the standby system is being retrofitted to an existing home. Compare the volume required for the generator and all appliances to the rating. If the meter and primary regulator are not large enough, the gas company will need to install either a larger meter, larger regulator—or both. The local gas company can assist with this aspect, and in some cases, doesn’t apply an installation charge.
Contractor’s role
The builder will typically work with a local electrical contractor or generator dealer who can assist in determining what size generator is appropriate based on which components of the home will be backed up and the amps required.
The most important decision takes place up front: deciding whether to back up the entire house versus specific loads. An “essential loads” configuration utilizes an independent distribution panel to route electricity to only the critical systems pre-selected to receive power during an outage. This might include lights, refrigerator, furnace, sump pump, garage door, water heater and computer only. Homeowners seeking this type of backup system will likely require an 8.5kW to 20kW size generator.
A “whole house” configuration simply routes power through the current distribution panel already attached to the house, ensuring power delivery to every electrical system and convenience. Homeowners desiring this type of scenario should consider a generator above a 15kW – depending on the size of the house and number of appliances and other items to back up.
“It’s always an interesting discussion with the customer to help them understand how and what their standby system can accomplish,” said Rhule. “Homeowners have legitimate concerns about their utility stability and for the electrical contractor or builder to recommend a standby generator usually ‘wows’ the homeowner. It’s another option that can help a contractor differentiate from the competition, while adding value and helping their customer protect their family and largest investment.”
Where to locate the generator in relation to the gas and the electrical meter, and where to locate the emergency panel and automatic transfer switch are other key decisions the contractor or dealer can recommend.
“A lot of what we do is offer technical assistance,” explained Rhule. “Many dealers are also electrical contractors who can coach the builder and the homeowner through the process, and install the entire system if necessary. What surprises most people is not only how much the generator can power, but installing a standby system isn’t that complicated – it integrates into the home’s existing fuel source.” However, Rhule explains, that most standby generator systems are not a do-it-yourself project for homeowners to tackle, due to the handling or electrical wiring and fuel lines. Professional installation by a licensed electrical contractor is highly encouraged.
Recommending the appropriate system
- Determine the essential items deemed necessary to run simultaneously during a power outage (i.e. lights, refrigerator, furnace blower, sump pump, well pump, television, medical equipment, or security system). Walk the homeowner through the key appliances and other electrical needs they want to be sure are always backed up by the generator.
- Determine the total wattage of all appliances to be backed up by the standby system. Check the safety tags on the appliances for wattage information. Generators are rated for both continuous running wattage and motor starting ability. Some models utilize new technology to provide superior motor starting capability and actually outperform larger kW units
- Residents or small business owners seeking a dependable backup power source in the event of an extended loss of utility power will want a model with an overhead valve (OHV) or overhead valve industrial engine. These are designed for longer running time, quieter operation and extended engine life.
- Comply with any municipal codes governing proper installation. Noise ordinances, positioning of the generator and electrical codes are among the issues that can vary in each municipality.
John Schultz is the director-residential business, for Kohler Power Systems, a division of Kohler Co., in Kohler, Wisconsin. Kohler Power Systems has manufactured generators for the residential, marine, mobile and industrial markets for more than 80 years.
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New Technology Provides Homeowner with Generator-Ready Homes
Kohler Power Systems and Schneider Electric’s North American Operating Division, best known in the United States for its Square D ® brand, have agreed to produce, market and sell the Intelligent Load Center, a new electrical load distribution enclosure and automatic transfer switch into one package.
The two-in-one load center (38-40 circuits) will make less work for builders and electrical contractors involved in new home construction, and provide the new homeowner a generator-ready residence.
The Intelligent Load Center eliminates the need for a second distribution panel and additional wiring for a standby residential generator, thus resulting in less installation time and costs for the builder or electrical contractor. Builders and electrical contractors can realize an estimated $800-$1,200 savings in product and labor costs. The product will be available by June 2006.
“Having a reliable back-up power solution within the home has become increasingly important in recent years,” said Bill Unseld, manager, product marketing for Schneider Electric’s North American Operating Division.
The new Intelligent Load Center combines the Square D QO load center and its smart breaker system , and Kohler transfer switch logic. Key features include:
- Automatic switching between main and alternate power source (such as the backup generator);
- Service-entrance rated transfer switch;
- In-home remote monitoring and generator control capability; and
- Manual load control over which applications are supported by the available generator capacity.
The transfer switch portion of this new load center is responsible for monitoring utility power for any interruptions. Should a power failure occur, the transfer switch automatically transfers the pre-determined electrical components to the generator, which will restore power within 10 seconds. When utility power is restored, the transfer switch transfers the electrical load back to the utility and shuts the generator down.
“Kohler and Square D are rethinking the way homes are powered in the future,” said Melanie Tydrich, senior product manager-residential generators, for Kohler Power Systems. “Contractors can set themselves apart from the competition by offering their customers a generator-ready home, while also simplifying the installation process for the homeowner seeking a standby generator at the time of construction or post construction.”




















