The Complete Guide to Backup Power for Texas Homes

Here's a fact that surprises most Texans: we're on an island. Electrically speaking, anyway. Texas runs its own power grid—the Electric Reliability Council of Texas (ERCOT)—which covers 90% of the state's electricity. Unlike every other state except Hawaii, we can't borrow power from our neighbors when things go sideways.

That decision was made decades ago to avoid federal regulation. And for the most part, it works fine. Until it doesn't.

Winter Storm Uri in February 2021 proved what “doesn't” looks like: 4.5 million homes without power, many for days. 246 deaths. An estimated $295 billion in damage. The grid came within 4 minutes of a total collapse that could have taken weeks or months to restore.

Since Uri, Texas has invested in weatherization and added generation capacity. Battery storage has grown from roughly 300 MW to over 14,000 MW. But ERCOT's own winter assessment shows a potential 15+ GW shortfall in a severe repeat scenario. The reserve margin sits at 10.1%—below the 15% target.

Meanwhile, demand is growing faster than supply. Data centers are requesting over 164,000 MW of new interconnections. EV adoption is accelerating. Summer 2023 and 2024 both saw conservation alerts and narrowly avoided rolling blackouts.

The grid is more reliable than it was in 2021. But “more reliable” and “reliable enough” are two very different things.

Backup power isn't one-size-fits-all. There are four main approaches, each with real trade-offs. Here's the quick overview before we go deep on each one.

A standby generator sits outside your house (typically next to the AC unit), connected to your natural gas line or a propane tank. When the power goes out, an automatic transfer switch detects the outage and fires up the generator within 10-30 seconds. When grid power returns, it shuts off automatically.

The good: Generators can power your entire home indefinitely, as long as you have fuel. Natural gas never runs out (it comes through underground pipes). They're proven technology—your grandparents understood how engines work. A 22kW Generac can run a 3,500 sq ft Texas home with the AC blasting, every light on, and the fridge humming along.

The not-so-good: They make noise. About 65-70 decibels, similar to a loud conversation. Some HOAs aren't thrilled about that. They require annual maintenance ($200-$400/year)—oil changes, filter replacements, exercising the engine. And there's a 10-30 second gap between when the power goes out and when the generator kicks in. Your clocks will reset.

Popular models: The Generac Guardian series dominates the Texas market. The 22kW ($5,500-$7,000 for the unit) and 24kW ($6,500-$8,500) models cover most homes. Kohler and Briggs & Stratton are solid alternatives, typically running 10-15% higher in price. Total installed cost for a mid-range system: $10,000-$14,000.

Best for: Homeowners who want whole-house coverage, have natural gas available, experience long outages (24+ hours), or want proven, mechanical-not-digital simplicity. This is the go-to for large homes in areas like Southlake, Westlake, and The Woodlands where Uri knocked out power for 4-5 days.

Full generator breakdown →

Battery backup systems store electricity in lithium-ion batteries, typically mounted on a garage wall or installed beside your electrical panel. The Tesla Powerwall is the name everyone knows, but Enphase IQ, Franklin WholePower, and Generac PWRcell are all solid options in the Texas market.

The good: Switchover is near-instant—milliseconds, not seconds. Your clocks don't blink. They're completely silent. Zero maintenance. No fuel, no oil changes, no annual service visits. They pair seamlessly with solar panels and qualify for the 30% federal tax credit (the ITC). Your phone controls everything.

The not-so-good: Runtime is limited by battery capacity. A single Tesla Powerwall 3 (13.5 kWh) can run essential circuits for about 8-12 hours, depending on load. Running the AC drops that significantly. If you want whole-home coverage for a full day, you need 2-3 units—and the cost adds up. Most batteries deliver about 5 kW continuous, so they can't run everything simultaneously.

What they cost: A single Tesla Powerwall 3 runs about $10,000-$14,000 installed. Two units: $18,000-$25,000. The Enphase IQ Battery 5P: $7,000-$10,000 per unit. After the 30% tax credit, a $14,000 Powerwall effectively costs $9,800.

Best for: Homes in HOA-restricted communities (hello, Highland Park and University Park), solar owners, tech-forward homeowners, areas with shorter outages (under 12 hours), and anyone who values silence and zero maintenance. Popular in Austin's eco-conscious communities like West Lake Hills and Bee Cave.

Full battery breakdown →

A hybrid system pairs a battery with a generator. The battery handles the instant switchover (milliseconds, no clock reset), and the generator fires up for extended outages when the battery runs low. It's the “I want it all” option.

How it works in practice: Power goes out. Battery takes over instantly. You don't even notice. If the outage lasts beyond the battery's capacity (say, 8-12 hours), the generator starts automatically and runs the house while also recharging the battery. When grid power returns, everything shuts down gracefully.

For short outages (the majority), you get silent, instant backup. For Uri-style extended outages, you get indefinite runtime. The battery also means your generator runs less, extending its lifespan and reducing maintenance.

What it costs: $18,000-$60,000 depending on components. A Generac Guardian 22kW ($10,000-$14,000 installed) plus a Tesla Powerwall ($10,000-$14,000 installed) gets you a solid hybrid setup for $20,000-$28,000. High-end configurations with multiple batteries and a premium generator can run $40,000-$60,000.

Best for: Homeowners who experienced Uri and never want to be vulnerable again. Families with medical equipment that can't tolerate even a 10-second gap. Large homes that need whole-house coverage plus instant switchover. Popular in affluent DFW and Houston suburbs where homes are 4,000-8,000+ sq ft.

Full hybrid breakdown →

Solar panels alone don't help during a power outage. That surprises most people. Grid-tied solar systems automatically shut down when the grid goes down—it's a safety requirement to prevent backfeeding power lines. You need batteries to capture and use solar energy during an outage.

The opportunity: Texas gets 230+ sunny days per year. A 10kW solar array on a south-facing Texas roof can generate 13,000-15,000 kWh annually. Paired with 2-3 batteries, that system can power your home during an outage and recharge itself during the day, potentially running indefinitely without a generator.

The reality check: Solar + storage is the highest upfront cost option. A 10kW solar array ($20,000-$28,000) plus two Powerwalls ($18,000-$25,000) puts you at $38,000-$53,000 before the tax credit. After the 30% ITC, that drops to $26,600-$37,100. Payback periods in Texas run 7-12 years depending on your electricity rate and system size.

Best for: Homeowners with high electricity bills ($200+/month), south-facing roof space, long-term ownership plans (7+ years), and an interest in energy independence. Austin's Georgetown was one of the first US cities to run on 100% renewable energy. The Austin metro generally leads Texas in solar adoption.

Full solar + storage breakdown →

Here's what backup power actually costs in the Texas market as of 2025. These are installed prices, including equipment, labor, electrical work, permits, and concrete pads where applicable.

Permanently installed standby generators require permits in virtually every Texas municipality. You'll typically need an electrical permit (transfer switch, panel connections, grounding), a mechanical permit (concrete pad, vibration isolation), and potentially a gas line permit.

DFW cities like Southlake, Westlake, and Highland Park add architectural review requirements on top of standard permits. They want to approve the location, screening, and sometimes even the color. Budget $150-$500 for permits and 1-3 weeks for approval.

Houston area permits go through the Houston Permitting Center for city limits. Unincorporated Harris County has different (generally fewer) requirements. Sugar Land, Katy, and The Woodlands each have their own municipal processes and community covenants.

Austin area has an extra layer: Austin Energy has specific interconnection rules for battery and solar systems. Georgetown runs its own utility (GUS) with a separate process. Pedernales Electric Co-op serves Lakeway, Bee Cave, and parts of Dripping Springs.

HOA considerations: Many HOAs have rules about generator placement, noise levels, and screening requirements. Battery systems are generally easier to get approved—they're silent, mounted in the garage or on a wall, and invisible from the street. Always get HOA approval before buying a generator.

What happens if you skip the permit: Insurance won't cover damage from unpermitted electrical work. The manufacturer warranty may be voided. Your city can require removal at your expense. When you sell, the home inspection will flag it. It's not worth the risk.

City-by-city permit guide →

After helping hundreds of Texas homeowners, we've found the decision comes down to four questions. Answer them honestly and the right system usually becomes obvious.

From first call to flipping the switch, here's how a typical backup power installation goes in Texas.