U.S. standby generator demand pops in 2024

Demand for standby generators is booming across the U.S., fueled by increasingly severe weather and aging electrical infrastructure.

Why it matters: The generator business aligns naturally with HVAC. 

What’s happening: In 2024 alone, the U.S. experienced 27 severe weather disasters each totaling more than $1 billion in damages, including Hurricane Helene, which wreaked havoc on parts of the Southeast. 

• Generac CEO Aaron Jagdfeld told Reuters that these events resulted in 1.2 billion power outage hours during the first nine months of 2024, the most since 2010.
• In Q3, Generac saw its residential product revenue grow 28 percent, year-over-year.

What they’re saying: “There’s going to be a surge over the next six, 12, 18 months in residential standby units,” Jagdfeld said. 

• “Those will be very popular in… all the storm-impacted areas,” he added, noting that the company is considering hiring 400 additional employees just to meet demand.  

Yes, but: The generator opportunity extends well beyond storm-prone regions, with demand rising nationwide. 

• The average American spends several hours without power annually — 5.5 hours in 2022, per the Energy Information Administration — and over 70 percent of the country’s electrical grid is older than 25 years.
• Plus, growing consumer reliance on medications that require refrigeration, along with electric vehicle use, is further driving demand.  

The bottom line: The pressure on the power grid has become a “massively critical discussion point,” Jagdfeld told CNBC, adding that it’s “only going to get worse.”

• As power outages and aging infrastructure push generators into the mainstream, the overlap with HVAC continues to grow. 
• Generac will report its Q4 takeaways, including forward-looking comments, on February 12.