Does Solar Power Save Money Compared to Gas Generators Over 3, 5, or 10 Years

If you are looking to reduce your monthly electricity bills and are searching "Does solar power save money compared to gas generators?" you are not alone. While gas generators seem more affordable upfront, they can be more expensive when comparing the cost of running a solar generator vs a gas generator over 3, 5, and 10 years due to the recurring fuel and maintenance costs. On the other hand, solar generators may require a higher upfront investment, but they do not require fuel or heavy maintenance in the long run.

Many US states offer up to 30% tax credits on the purchase of a new, qualified solar product. Jackery Solar Generators are essential home backup solutions that cut down electricity bills and keep critical household appliances powered during outages. If you purchase an eligible Jackery product, you may be eligible for up to 30% in tax credits.

Keep reading as we break down the costs of running a solar vs gas generator based on data from the US Department of Energy (DOE) and the Energy Information Administration (EIA).

In this article, you'll learn:

• Solar generators are more affordable in the long run than gas generators because they do not require fuel to operate.
• Solar generators can help earn up to 30% tax credits and reduce the monthly electricity bills by powering appliances with free sunlight.
• DIY whole-house battery backups can replace gas generators if sized correctly. You must consider the electricity consumption and ensure the solar generator can handle the load.
• What makes gas generators expensive in the long run, and how much is the price inflation in the past 5 years?
• How much money can you save with the Jackery Solar Generators?

Solar vs Gas Generator: Which is Cheaper to Run

Solar generators are more cost-effective in the long run compared to gas generators, as they do not require ongoing fuel expenses and maintenance. In order to get the exact answer to does solar power saves money when compared to gas generators, you have to look beyond the upfront costs.

As of April 2025, EIA reveals that the regular gasoline price is $3.17 per gallon, and the diesel price stands at $3.57 per gallon. If you have a gas generator that consumes around 0.5 gallons/hour at half load and runs for 20 hours, you'll have to spend $31.70 just on fuel. The exact cost of a gas generator can be higher, including regular maintenance and oil changes.

Fuel Cost = Fuel Consumption Rate × Fuel Price (Gasoline) × Hours of Use = 0.5 gallons/hour × $3.17 × 20H = $31.70

On the other hand, solar generators rely on free sunlight, so you don't have to pay anything for fuel. Solar generators with LiFePO4 batteries can last for over 10 years, allowing you to power household appliances without incurring any monthly or yearly expenses.

How Much Can You Save With Solar Power Over Time?

Solar panels can help you save around $50,000 over 25 years. On average, a homeowner spends around $136.84 per month, or $1,642.08 per year, according to the US Energy Information Administration. Even if you can't completely eliminate the bills, the savings can still be substantial. The exact savings with the solar panel system depend on the amount of electricity produced, electricity consumption, and incentives.

Let’s break down how much money does solar power save when compared to recurring gas generator expenses with an example:

Suppose you use a gas generator to run a few essential household appliances, such as lights, refrigerators, a small TV, and a portable fan. In this case, a half-load gas generator uses approximately 1 kW per hour and operates for 200 hours per year.

Fuel Cost = 0.5 gallons/hour × $3.17 × 200H = $317 per year

You can expect to pay around $70 for oiling, filters, and wear and tear. The total yearly cost to run a gas generator would be $387. If the initial cost of buying a gas generator is $1,000, the total annual expenses are approximately $1,387. In 5 years, the total costs are $2,935, whereas 10-year expenses would be $4,870.

On the contrary, an average solar panel system can cost around $2.73 per watt before any incentives. Even after a decade, the total cost might still be around the original purchase price. They can also reduce your monthly electricity bills if used regularly during peak hours electricity when the rates are higher. Remember, the exact answer to how much money does solar power save will depend on your energy usage, location, and upfront investment.

Can a Solar Generator Replace a Gas Generator?

Yes, whole-home solar generators can replace gas generators if sized correctly. You will need to ensure the capacity of the solar generator is enough to power essential household appliances, depending on your needs.

The Jackery Whole-Home Backup 5000 Plus (20kWh) features a large battery capacity, capable of powering most household appliances, including refrigerators, water heaters, lights, water pumps, and cooking equipment. It emits less than 30dB of noise (almost the same as a quiet library), so you can power appliances without disturbance.

What Makes a Gas Generator Expensive in the Long Run?

Gas generators might seem affordable at first glance, but the hidden costs can make them expensive in the long run. In fact, one study by the National Laboratory of Medicine reveals that a diesel generator will no longer be economically viable after 5 years due to high operational and maintenance costs. On the other hand, a solar PV system can be a viable project for the next 30 years. Here are some factors that make a gas generator expensive in the long run:

• High Fuel Costs: A typical portable gas generator burns about 0.5 gallons of fuel per hour. Even modest usage (200 hours a year) can cost you over $300 annually just for fuel, depending on current gasoline prices.
• Regular Maintenance: Regular oil changes, spark plug replacements, air filter cleaning, and general servicing are required to keep your gas generator running. On average, you can expect to pay between $50 and $100 per year in maintenance. 
• Short Lifespan: Gas generators typically have a lifespan of 5 to 10 years, depending on moderate use. The more you use the generator, the faster it wears down. This means you'll likely have to replace the entire unit once or twice within a 10-year period. 
• Noise & Environmental Issues: Gas generators are loud and emit toxic fumes. Some local laws even restrict their use due to noise or pollution concerns, leading to potential fines or requiring additional muffler accessories.

Fuel Price Inflation Trends Over the 5 Years

Fuel is one of the highest operating costs of a gas generator, and the fuel price has changed significantly over the past five years. According to the historical and forecast data from EIA, the average retail gasoline price has experienced steady inflation.

Source: EIA

In just five years, gasoline prices have increased from $2.25 in 2020 to as high as $3.42 per gallon in 2024. That translates to a nearly 52% increase, which directly impacts fuel-driven equipment, such as gas generators. Not only does solar power save money in the long run by reducing the reliance on the grid, but it also helps you avoid the unpredictability of fuel price inflation.

Solar Generator Savings With Federal Tax Credits

The Residential Clean Energy Credit equals 30% of the costs of a new, qualified solar product installed between 2022 and 2032. However, the credit percentage will reduce to 26% in 2033 and 22% in 2034. If you purchase after December 31, 2034, you will not be eligible for any solar tax credits.

The 30% solar tax credits drastically reduce the payback period, especially when combined with zero fuel and low maintenance costs. It also means that in a few years, the solar system will start paying for itself through savings in terms of electricity bills, minimal maintenance costs, and no fuel expenses.

Note: The solar tax credits are not a cash rebate. Instead, they reduce the amount of tax you owe to the federal government.

Let’s compare does solar power save money when compared to gas generators over a decade of use: