I'm sure you can get a properly installed transfer switch for much less than that.
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It's called a GenerLink. I used one to connect my portable generator and it worked well as long as you had enough gasoline to fuel the generator. Close to about $1k plus installation. Traded it in when I bought a permanent natural gas stand-by generator from Port Electric in Port Perry, who sells and installs both systems.
Good Chilly Sunday Morning, think this topic has been discussed before but for anyone wanting a Generator package check out the TSC Stores, they carry Generac and sell them cheaper than the dealers can buy them. Volume buying I'm sure and some models came with the automatic transfer switch. if you have natural gas or a big propane tank get them so they can hook-up to those sources.
About Generacs, look twice before you buy. We have a 11K natural gas unit at work that lasted a measly 3 years. Of that time it had maybe 50 hours of real use. It crapped out last monday during a power outage. Mechanic came by and said it was fried. Personally I'd rather go with a Honda or Yamaha home unit.
A friend of mine is on his 3rd Generac generator in as many years, he runs them on propane to power his Maple Syrup operation in the bush, this last one just packed it in last week and he is getting another. Fortunately they have been covered by warranty and replaced by it.
The units are large I believe they are around 10 K.
When they are running , they are great , provide all the electricity he needs for lights, pump in his filtration system and his Reverse Osmosis system, but for some reason or other it is the computer that packs it in.