With increasing severe weather patterns across the U.S. leading to a greater demand for uninterrupted power, the home backup generator business is rapidly growing. Independent dealers are uniquely positioned to deliver reliability, convenience, and peace of mind through whole-home generators. Read on as we explore current trends in the home backup generator business and how to capitalize on the current market to better serve customers and also grow your business.
Growth and Distribution of the Home Backup Generator Market
Several key factors drive the growth of this market:
- Increasing frequency of power outages
- Growing demand for uninterrupted backup and standby power supply
- Rising awareness of emergency preparedness.
Homeowners want and need power security. Whole-home solar generators and standby backup generators provide the solution. The key distribution and installation channel for home generators are specialized independent dealerships such as Generac dealers, EcoFlow installers, and electric and plumbing specialists.
Now, let’s explore the top trends influencing the market.
Extreme Weather Increasing the Demand for Backup Generators
The frequency and intensity of severe weather events are on the rise and, as a result, so are residential power outages and grid instability. Homeowners seek to prioritize uninterrupted power supply for essential home functions like heating, cooling, sump pumps, and food preservation, especially in areas prone to hurricanes, wildfires, tornados and other extreme weather conditions.
For example, hurricanes regularly cause entire communities along the Gulf Coast to lose power for days and, in extreme circumstances, weeks at a time. The desire for consistent, predictable power, regardless of the weather, drives the need for home backup generators, especially in regions vulnerable to severe weather and natural disasters.
Smart Home Generators and Seamless Integration
Homeowners are increasingly seeking smart backup generators with features that enable remote monitoring and control. Through apps like Mobile Link, users can check their generator’s status, track fuel levels, receive maintenance alerts, and even start or stop the system from their smartphones. When homeowners choose a smart generator, they expect seamless integration with existing home automation systems. This allows for efficient energy management and smart power distribution during an outage. For example, essential devices and appliances, like refrigerators and freezers, can be prioritized. Homeowners can always have end-to-end visibility of their system, enjoying the peace of mind that their generators are always ready should an outage occur.
Increased Reliance on the Internet for Continuous Connectivity
In today’s digitally connected world, constant, reliable power is essential. In addition to powering major appliances like HVAC units and freezers, backup generators can help maintain our connectivity through continuous access to the internet.
With so much of our communication, work, and play relying on constant access to electricity and Wi-Fi, more homeowners are investing in whole-home generators to ensure a steady stream of uninterrupted power and internet access. Especially consumers who work from home, so they do not need days off just because their house doesn’t have power.
Government Incentives for Generator Purchase
The federal government provides incentives, subsidies, or tax credits for backup generators in specific circumstances.
- Customers living in a disaster-prone or outage-heavy area
- Customers who owned a generator destroyed in a natural disaster
- Customers who rely on generators to power medical devices or keep critical medicine cold
More homeowners in the above categories are taking advantage of government support to help fund the purchase of their backup generators, contributing to a growing demand for this equipment.
Consumer Demand for Payment Flexibility
A home backup generator delivers peace of mind in the midst of a storm—literally. But the feeling of security that comes with consistent, reliable energy carries a hefty price tag. The high initial cost of purchasing and installing a whole-home generator presents a challenge to homeowners. These generators must be installed by certified electricians or technicians, ensuring a safe, up-to-code connection to the home. Between the equipment and labor, purchasing a home generator may cost homeowners thousands of dollars.
Distributors and retailers must offer payment flexibility to attract more customers, increase sales, and maintain their position in the market. Many consumers find it impossible to cover generator costs with cash. Charging the purchase to a credit card isn’t ideal, either; high APRs and inconsistent rates can result in astronomical interest fees that significantly increase the customer’s total costs. Unless the credit card purchase is paid off in the first month, the interest dollar amount can be astronomical.
Consumers want, need, and have come to expect payment plans that allow for immediate purchase and installation of their whole-home generators. Offering consumer financing not only meets customer expectations but also differentiates your business and allows you to serve your clients with affordable payment options that help you sell more generators.
Partnering with a Consumer Financing Firm for Your Whole Home Generator Business
When a homeowner is ready to purchase their home backup generator, distributors must empower their customers with affordable, consistent, and simple financing options. Choosing the right consumer financing firm is critical to improving customer service and sales.
United Consumer Financial Services, a division of Berkshire Hathaway, has been delivering consumer financing solutions to businesses like yours for more than 45 years. We simplify financing for you and your customers, delivering streamlined experiences that benefit both parties. Becoming a merchant with UCFS is easy. There are no surprise fees, and you receive compensation in just one or two days after the project is complete. Your customers enjoy a quick application and a credit decision in just minutes, allowing them to proceed with their purchase. They reap the benefits of affordable, scheduled monthly payments and consistent interest rates that keep costs low throughout their loan repayment.
As trends in the home generator industry ebb and flow, one thing remains the same: the consumer’s need for affordable, accessible monthly payment plans – or, consumer financing. Contact United Consumer Financial Services today to learn how we can streamline your financing, help you better serve your customers, and empower you to sell more whole-home generators.
Mobile Link is a registered trademark of Generac Power Systems, Inc.