Why is it so expensive to install a generator?

[vickytaylor]

I live in FL and of course everyone is going crazy doing last minute generator shopping since many went to work last summer looking like refugees (no water if your electric was on a well pump), no lights or air... :shock:

Anyway, I am researching generators and decided a 15kw Generac Guardian stand by unit might work for us. I just want to have the 3hp well working, a window air unit, the fridge and a few lights.

I called around and the electricians here want $3000 to install it and one even wanted $5000 (THAT IS NOT INCLUDING THE GENERATOR). Now I know they get paid $65 per hour when I call for other work so why is a 4 hour job (per Generac) $3000?

Per Generac web site: Installation system includes the pre-wired automatic transfer switch with built-in load center, 30' and 2' wiring harnesses, pre-wired external connection box, 1' flexible fuel line, "Do-It-Yourself" installation guide and a composite mounting pad

I asked one of the electricians and he mumbled something about the cost of wires. Well the unit I am looking at comes with the stuff in the above paragraph so I don't understand how additional wires he might need could cost $2740.

So my question is, are we getting taken advantage of here because everyone is in a pre hurricane panic or am I missing something?

Thanks for any input you can give me.

[giddonah]

supply and demand. Plus, electricity scares the living hell out of people (as it should) which makes electricians seem like magicians to some. Licensing is another issue that will drive costs up (since competition is limited-- which can be a + or a - depending on how you argue it). Wires are expensive, but not that expensive. But who knows, I live in NY, maybe there's some kind of "shortage" in FL. I've heard enough horror stories about construction in FL to think everyone down there with a hammer is out to rip you off (since, who cares, the next hurricane is going to tear the place up anyway, right?).

Sorry, I just get irritated at how much people want to charge for things that really aren't that difficult. But then again, it's not difficult if you know what you're doing. It's a horrible game. Customers want good work for little money, and the trades want to be paid for their skills. It just depends on what team you're on.

Anyway, maybe someone who really knows what they're talking about will respond to this.

[Sparks]

I agree, it's probably supply and demand sometimes known as gouging. An off the shelf generator is not that difficult to install. I would probably charge about $500 for the job with permit and inspection fees but I'm in Buffalo and we don't install many residential generators (wish I did though). But, I mostly cater to lower middle income customers and generators are considered a luxury, at least around my town.

[VALENT]

I really dont think the electricians you are contacting are understanding what type of system you are talking about. I dont even think the greediest of people would gouge anyone that much. Of course, they may be worried about liability issues and additional constraints by your local power company. After all, no line man wants to work on dead lines and get shocked by your generator "feeding back" onto the grid.

[Sparks]

True, feeding back and being boosted by reverse feeding the transformer, if done right, this wouldn't be an issue but sometimes things aren't done right. C'mon now, really. :(

[vickytaylor]

Thanks everyone, they really do understand what I am asking for - I detailed it and even had some come out to give me an estimate. I think you are right it is a supply and demand thing with some gourging - it seems EVERYONE is buying a generator right now. And when I ask why it is so expensive to install they just hem and haw about nothing and never really answer me.

I was going to get a stand by Generac Guardian 15k air cooled but with it costing 3000 then the install 3000 and the 250 gal propane tank that has to be put in costing 2000 I think I am going to have to get something simpler like a portable 15k which is about 2700 with the transfer switch. Hopefully the install quotes I get on that will be cheaper.

We are also building a barn and a two car garage - look for my questions in other areas if you don't mind because I am sure I will have some!

Thanks again!
Vicky

[bkrahmer]

$2000 for a 250 gallon propane tank? Yep, sounds like everybody is gouging in Florida.

[vickytaylor]

$2000 for a 250 gallon propane tank? Yep, sounds like everybody is gouging in Florida.They really are, the rumors are true! I have to call at least 10 people to find 1 with a shred less greed it seems and sometimes it is just a lost cause. I know its true because my family lives in NE and prices are less there.
There is so much construction going on down here it is crazy. Sometimes we can't even find anyone to do the work because they are so back logged.

Anyone want to come down and build me a garage at an honest rate?

[bkrahmer]

I thought about heading down to FL during the winter to do framing for awhile. However, I have major pressing priorities at home, like finishing my own house, and a baby on the way! :)

[kpi]

The electricians may not be trying to rip you off. One thing is sure, the manufacturer's info is way to simplistic to the point of being a lie. While under perfect conditions (ie new onstruction with the gen set located very close to the panel) the manufacturer's info can come close to being realistic, in most cases this will not be true.
For example, the circuits served by the generator should be separated from all the other "normal" power circuits. This can entail cutting the wall open to remove the emergency circuits from the normal panel. If one emergency circuit shares a neutral with a normal circuit this can mean more walls are openned.
Depending on your specific circumstance your local electricians may be trying to rip you off, but they may not.
Best regards, Kirk

[roger g]

I agree with kpi. I guess it is like doing a renovation whereas you don't really know what you are into until you are into it so contractors guess high. Really high.
What I don't understand is that when prices are high why do people continue to pay? Everything is cyclical so why not wait until prices come down? During a house price boom do people sell their houses for less than what their neighbour sold for? No. Everyone wants the most money. If you want something NOW then you must pay the prices NOW. People want something NOW but want what was charged yesterday. Is it gouging? Probably yes. When you sell your house for the most you can get, is IT gouging?
Free enterprize? Strange name.




roger

[Sparks]

Good point Roger, nobody is forcing the customer to have the work done in this case. Heck, most all big and successful companies charge the highest price the market will bear. The house analogy makes sense.

[vickytaylor]

Easy to say if you didn't have to go without water through 3 hurricanes guys! We are being taken advantage of pure and simple but you can call it whatever you like. Prices are the same for other electrical work here but if you want to safeguard against having no water or power you are going to really pay for it. It is not the same as house appreciation at all. At least in that everyone has the same advantage. And people without current ownership of a house have the chance to establish credit or obtain low interests rates if they choose wisely. I am not here to have moral discussions but taking advantage of a specific group when they are in need seems a pretty obvious wrong to me. I appreciate the previous input so I will not respond if you are going to go on about this. Thanks for trying to help previously.

[Sparks]

We're just having open dialogue Vicky, why get defensive? I understand your side but just thinking of the other side of the coin as well.

[MD_Willington]

This probably will not help much, but I can add that the extra gear involved is NOT cheap. I work with this stuff, and where I work we have about a half dozen of these generac systems.

The protection relay used in most Generac systems is about $1000USD. This is hooked up to the generac to protect the generator system itself.

Then there is the various disconnects and monitoring equipment used with the generac. This stuff is mounted in an enclosure beside the generator, usually a disconnect that isolates your system from the grid so you don't kill the utility linesmen that are fixing the grid in your area.

The gear monitors the external grid for voltage return etc, and has several other capabilities. Again this gear is not cheap.

I'm not going to tell you were I work, but I can tell you that I do work in the power protection industry, and have worked on projects for generac.

MD

[giddonah]

hmm, I always assumed the MD was for Maryland. Guess not.

[montytx]

Supply and demand, plan and simple. I have a boddy who went to FL last year after the second hurricane and cleared 1K a day for about 2 weeks doing nothing but cutting trees up for people. He said he would charge a few hundred per tree and cut could a crew running 12 hours straight, put everyone in a hotel and still make a killing. What a crazy state FL is. Everyone wants to live there, they ought to have Hurricane Tax.

[MD_Willington]

hmm, I always assumed the MD was for Maryland. Guess not.

Nope..

It's my name, Matthew David. :wink: