How much does a natural gas generator cost?
Costs for natural gas generators vary widely depending on size, application, and configuration. Rough general price ranges are:
| Generator Type | Power Range | Equipment Price (USD) | Typical Installed Cost (USD) | Notes |
|---|---|---|---|---|
| New Commercial Standby | 50–200 kW | $20,000–$80,000 | $30,000–$110,000 | Add $10–$30k install: permits, site mods, switchgear |
| New Industrial/Prime Power | 500+ kW | $100,000–$300,000+ | $150,000–$400,000+ | Requires custom design, long lead times |
| Used or Rebuilt Commercial | 50–200 kW | $8,000–$32,000 | $18,000–$50,000 | 30–60% less than new, verify test hours, warranty |
| Conversion Kit (Diesel to Nat. Gas) | Light Commercial | $200–$400 (kit) | $1,000–$3,000 (pro install) | Portable gasoline generators: tri-fuel kits |
| Industrial Dual-Fuel Retrofit | 300+ kW | $5,000–$10,000+ | $7,000–$15,000+ | Plus calibration, emissions cert |
For facilities with local code requirements, fuel storage permitting, emissions compliance upgrades, and noise abatement may add to total project cost, especially in urban or coastal zones.
Other factors to consider include:
Installation Variables: Installed cost includes standard labor, switchgear, and permitting, excluding special site modifications, fuel storage, or major utility upgrades. The above estimates do not include costs for new or upgraded gas meters, trenching, utility coordination, extended conduits, or remote monitoring. These are frequent hidden cost drivers in both new and retrofit scenarios.
Permitting & Lead Time: Permit and utility approval can take 2–12 weeks in many U.S. markets, longer in regulated, seismic, or coastal zones. For marine projects, class recertification, vibration isolation, and salt-resistant enclosures are billable extras.
Total Cost of Ownership: Factor in annual planned maintenance ($1,000–$3,000/yr for commercial sizes, more for 24/7 critical facilities) and fuel price volatility over a 5–15-year lifespan. Run utility-owned ROI calc if operational cost will be benchmarked against utility rates or for microgrid/peak-shaving use.
Despite the upfront cost, many businesses find the long-term fuel savings and reliability of natural gas generators worth the investment. Read our full article on the cost of natural gas generators, including a cost calculator.
Buyer Tip: Always get a site survey, itemized install quote, and confirm available model inventory before committing. Many facilities pay tens of thousands above list due to last-minute code upgrades or shortage of “in stock” units during disaster/recovery events.
Related Questions
How much does it cost to install a natural gas generator?
Installation costs can vary greatly by project. Larger commercial generator installations can cost $10,000 to $30,000 or more, especially if it involves upgrading gas meters, doing concrete work, sound enclosures, and integrating with building systems. It’s important to get a site survey and quote from a qualified installer – factors like distance from the gas main, local code requirements, and labor rates will affect the install cost.
Is a natural gas generator cheaper than diesel?
The purchase price of a natural gas generator is often slightly higher than a comparable diesel generator (particularly in smaller kW ratings, since diesel portable units can be relatively cheap). However, the operating costs of a natural gas generator are usually lower because of cheaper fuel and less frequent refueling logistics. In terms of total cost of ownership, natural gas units can be cheaper if you have a long planning horizon, due to fuel savings and lower maintenance on things like fuel filters. For one-off or temporary use, diesel might be cheaper, but for permanent standby installations, many find natural gas more cost-effective in the long run.
What affects the price of a natural gas generator?
Several factors affect generator pricing:
Are used or rebuilt natural gas generators reliable?
They can be very reliable if sourced from a reputable supplier. Natural gas generators often lead relatively easy lives in standby service (running only during weekly tests or occasional outages), so a used unit might have low hours. A quality rebuilt generator will have been inspected, repaired, and tested to ensure it meets performance standards. Depco, for example, sells fully load-tested used natural gas generators backed by a warranty, so buyers can be confident in their performance. As with any used equipment, check the service history and testing reports – but a used or rebuilt genset can be a smart, cost-effective purchase that still delivers long-term reliability.
