Backup Generator Installation

Install residential and commercial backup generators providing power security and peace of mind during electrical outages

Startup Cost
$25,000-$80,000
Difficulty
Advanced
Time to Profit
5-10 months
Profit Potential
$16,000-$50,000/month

Overview

Backup generator installation services install whole-house and commercial standby generators - providing automatic backup power during outages for homes and businesses.

Power reliability concerns drive generator demand.

Residential generator installations range from $8,000-$20,000 with 25-40% margins while commercial generators cost $15,000-$100,000+.

Installing 50-120 generators annually generates $200,000-$600,000 in revenue with 25-40% margins.

Target clients include homeowners in areas with power outages, homes with medical equipment, businesses requiring backup power, data centers and critical facilities, rural properties, and high-end homes.

Services include generator sizing and selection, electrical and transfer switch installation, natural gas or propane connection, concrete pad and installation, generator commissioning and testing, and maintenance and service contracts.

Success requires electrical and potentially gas licensing, understanding automatic transfer switches, relationships with generator manufacturers (Generac, Kohler, Cummins), generator sizing and load calculations, working with gas utilities, and offering maintenance service contracts for recurring revenue.

Many generator installers become authorized dealers for major brands, offer annual maintenance contracts, potentially combine with HVAC or electrical business, work with builders for new construction, market to areas with frequent outages, and build recurring revenue through generator maintenance and service.

Required Skills

  • Electrical Work
  • Generator Systems
  • Transfer Switches
  • Gas Connections
  • Load Calculations

Pros and Cons

Pros

  • Growing demand for power reliability
  • Good project margins
  • Recurring maintenance revenue
  • Essential service for critical applications
  • Weather events drive generator sales

Cons

  • Requires electrical license
  • Significant generator inventory investment
  • Gas line work may require separate license
  • Seasonal demand (after storms)
  • Generator equipment and installation complexity

How to Get Started

  1. Obtain electrical license
  2. Become authorized generator dealer
  3. Learn generator sizing and installation
  4. Invest in installation equipment
  5. Build relationships with gas utilities
  6. Market to homeowners and businesses
  7. Develop maintenance service contracts

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