The short answer
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Divide the p/litre of diesel by 3 and you won’t be far out.
The longer answer
1 litre of diesel contains 10.25kWh of energy
The electrical efficiency of a diesel generator varies a lot but a modern one running at mid-low load will be c. 30%
So, lets say diesel is 150p/litre, divide by 10.25 = 14.6p/kWh of fuel. Then divide by 30% = 49p/kWh of electricity generated; pretty close to 1/3 of the p/litre price of diesel.
OK, you’ve got to add in maintenance and depreciation or rental costs. But faced with grid electricity costs of c. 60p/kWh over the next 12 months (if you’re lucky) a good old ‘oil burner’ could be worth considering.
Note: a recent change to the ‘rules’ means you might have to use white diesel nowadays.
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Generators can run on a variety of power sources, depending on the type. For instance, some generators are fueled by natural gas, while others are fueled by diesel or solar power. The type you choose will affect your overall costs.
Gas-powered generators are usually the most affordable, ranging from $500 to $3,200. However, they typically only come as portable generators rather than whole-house generators. Keep in mind that the price to run it will fluctuate with the price of gas in your area.
You can often find both portable and whole-house liquid propane generators. Whole-house propane generators usually range from $2,200 to $21,000, while portable options cost between $600 and $2,800. Liquid propane is relatively clean-burning compared to diesel and gas, so it’s an eco-friendly choice. It’s also a popular option for people who live off grid or in rural areas since no gas line is required.
Natural gas generators need to connect to a city or town’s gas line, so you won’t find any portable options. They can range anywhere from $2,200 to $25,000, depending on their capacity. They’re a favorite for cold climates, and most can be converted to propane if needed.
Diesel generators usually range from $3,200 to $24,000. They’re more efficient than gas and natural gas generators, but diesel fuel is pricey, which drives up maintenance costs. They also don’t work well in very cold climates since low temperatures can cause the diesel to gel, rendering it useless.
Solar-powered generators get their fuel from the sun, so they’re very environmentally friendly. They range anywhere from $2,000 to $25,000, depending on the size, but they won’t work if they don’t get adequate sunshine, so they’re not advisable for use in cloudy regions. But if you live somewhere that sees lots of daily sunshine, these generators can save you quite a bit of money on your long-term energy bills.
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