The component that makes a standby system automatic — and the choice that decides whether your whole house runs or just the essentials.
The automatic transfer switch (ATS) sits between your meter, your panel, and your generator. It monitors utility power continuously. On an outage it signals the generator to start, waits for stable output, then transfers the home's load. On restoration it transfers back after a cool-down delay and shuts the generator off. The whole sequence is automatic — the homeowner does nothing.
A whole-house ATS transfers your entire panel to the generator, which requires a generator sized to your full load — simple, but it pushes you into a larger, pricier unit. A managed-load ATS (sometimes called a smart switch) transfers the panel but sheds big loads intelligently — it can pause the electric dryer or second air conditioner so a smaller generator covers everything that matters. For 100-amp homes and all-electric homes, managed-load is often the difference between a $14,000 install and a $22,000 one.
A whole-house ATS typically runs $1,500–$3,500 as part of an install; a managed-load switch $1,200–$2,500. Either way it should be itemized in your written quote, along with who services it under warranty.
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