How much do diesel generators cost and what factors affect pricing?
New commercial diesel generators span a wide price range. Units rated 10-50 kW cost roughly $5,000-$20,000, 50-200 kW sets cost $20,000-$75,000, 200-500 kW sets cost $75,000-$200,000, 500-1,000 kW sets run $200,000-$500,000, and 1,000 kWplus machines can exceed $500,000. These figures exclude installation, transfer switches and permitting. Price drivers include power output, emissions tier (Tier 4 engines are more expensive), brand reputation and features such as sound attenuation and remote monitoring. Installation costs and local regulations also affect the total project budget. Used or rebuilt generators generally cost 30-60% less but require careful inspection and verification of hours and maintenance history.
Related Questions
What are typical price ranges by power rating?
According to industry data for new commercial diesel generators:
| Power Output (kW) | Approximate cost (USD) |
|---|---|
| 10-50 kW | $5,000-$20,000 |
| 50-200kW | $20,000-$75,000 |
| 200-500kW | $75,000-$200,000 |
| 500-1,000 kW | $200,000-$500,000 |
| 1,000 kW+ | $500,000 and up |
These ranges exclude installation, permitting, transfer switches and ancillary equipment. Prices fluctuate based on brand, emissions compliance and market conditions.
Which factors influence generator pricing?
- Power output: the most significant cost driver; higher kW units require larger engines, alternators and cooling systems.
- Emissions tier: Tier 4 compliant units incorporate advanced after treatment and command higher prices.
- Brand and features: reputations for reliability (e.g., Cummins, CAT) and features like remote monitoring or sound attenuation affect price.
- Installation and permitting: site preparation, transfer switches and electrical tie-ins add to total project cost.
- New vs used: refurbished or used generators typically cost 30-60% less than new units but require due diligence.
Is diesel more or less expensive than natural gas per kWh?
Diesel fuel usually costs more per gallon than natural gas per cubic foot, but because diesel generators convert more energy per unit of fuel and do not require a continuous pipeline, the cost per kilowatthour can be comparable for short-term or mobile operations. For long-term prime power in areas with inexpensive gas, natural gas units may offer lower operating costs.
Are used or rebuilt diesel generators cost-effective?
Yes. Certified used or rebuilt generators from reputable dealers can offer significant savings. Depco’s inventory of used diesel generators includes units that have been inspected, loadbank tested and serviced. When evaluating used equipment, verify total operating hours, service history, age of the engine, and whether emission upgrades have been performed.
