Commercial Generator Cost Guide - Turnkey Industries

Oct. 28, 2024

Commercial Generator Cost Guide - Turnkey Industries

A commercial generator can provide your business with the backup power source it needs in the event of a power outage. These machines are critical to keeping your business up and running while experiencing minimal losses during a natural disaster or other power failures. Whether powering a storefront or keeping a construction job moving, commercial generators provide a key power solution for a variety of industries. But how much does a commercial generator cost? There are many factors to consider before you invest in such an expensive piece of equipment. Keep reading for the rundown on these incredible tools.

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Determine How Much Generator You Need

A commercial generator is an invaluable investment, but it does require a significant capital outlay at the start. Depending on how much power you need to generate in an emergency situation, a complex, high-wattage commercial generator can cost anywhere from $10,000 to $25,000, and even more. While this price tag may cause sticker shock, it is important to remember that commercial generators are very durable and if properly maintained can last many years. Another thing to consider is that the loss to your business during a power outage could cost as much &#; if not more &#; than a properly installed generator.

First things first &#; to answer how much a commercial generator will cost, you need to determine what size generator you need for reliable backup power for your business. Generators are sized in kW or kilowatts, so a 10kW generator will produce 10 kilowatts of power. Calculate the anticipated electrical loads of equipment you need to keep running during a power outage in order to determine the proper generator size for your needs. A qualified generator installer can help you make this calculation and estimate the cost of the generator as well as its installation.

A good rule of thumb when estimating the cost of a commercial generator for your facility is that you can expect it to cost between $300-$450 per kW. However, a brand name can affect the pricing of a commercial generator, as well as any warranty and service plans offered by the dealer from which you purchase your generator.

Additional Costs To Consider With A Generator Purchase

Once you estimate how much a commercial generator will cost at the outset, it&#;s also a good idea to take into consideration additional costs that come along with your purchase. These costs include installation, fuel source, and preventive maintenance.

When budgeting for a commercial backup generator, it&#;s crucial to look beyond the initial purchase price to understand the full scope of costs. While the commercial backup generator cost might be the most substantial single expense, installation can add significantly to the total. Installation costs vary depending on the size of the generator, the complexity of the electrical work, and local building codes. Additionally, the choice of fuel source&#;whether it&#;s diesel, natural gas, or propane&#;impacts both initial and ongoing expenses. This can affect not only fuel costs but also the design and setup of the system. Preventive maintenance is another important consideration, ensuring the generator operates reliably over time. This includes regular inspections, oil changes, and replacement of parts subject to wear and tear. Together, these factors paint a more comprehensive picture of the true cost of owning and operating a commercial backup generator.

Installation

The larger the generator, the more expensive the installation will be. For example, a 10 kW generator with installation may cost around $4,500, while a 22 kW generator with installation can cost up to $10,000. Installation fees can include permits, pouring a concrete pad for the generator (if needed), site preparation, upgrades to the electric panel, and installing a transfer switch to make the generator easy to use.

Fuel source

Commercial generators operate on diesel, natural gas, or propane. This won&#;t affect your purchase price, but it will affect the cost of purchasing and storing the fuel and the cost of running the generator. This is something to consider before you make your final purchase.

Preventive maintenance

Preventive maintenance will protect your investment and save you money in the long run by keeping your generator working for many years to come. However, it is an expense you will have to factor into your budget.

Weekly maintenance &#; exercise your generator without a load for 30 minutes to make sure no alarms or alerts appear and that the engine is running normally.
Monthly maintenance &#; check your oil and coolant levels, starting battery voltage, drive belt tension, and drain any exhaust condensation.
Quarterly maintenance &#; exercise your generator at full capacity for 20 minutes so that the lubricant heats up to operating temperature and can circulate throughout the engine.
Bi-annual maintenance &#; change your generator oil, oil filter, coolant filter, air filter, and fuel filter, and clean the crankcase breather.
Annual maintenance &#; clean your entire cooling system and inspect all components for damage, leaks, condensation, and loose connections. Replace cracked hoses, corroded connections, or other worn-out parts.
Every three years &#; have a professional technician inspect the generator; check and clean the air cleaner units and inspect the fuel system for leaks; and replace drive belts, fan drive belts, batteries, and coolant.

Is A Commercial Generator Worth The Cost?

If you weigh the cost of a commercial generator against the amount of revenue you could lose during a power outage, you may be surprised to find out that a generator can pay for itself simply the first time you use it! If your business can remain open when others shutter their doors, you will be able to continue serving customers without a loss of revenue. And, if you are a business that relies on refrigeration, having a standby generator means your assets will not be ruined during a blackout! Yes, a generator can be a considerable business expense, but the peace of mind it will give you is priceless.

Should You Rent or Buy a Commercial Generator?

When contemplating whether to rent or buy a commercial generator, there are many factors to consider to make the right decision for your operation. That&#;s why we&#;ve broken down the pros and cons of both options to make it easier for your business. Explore everything you need to know before you buy or rent a generator.

Cost Comparison of Renting vs. Buying

Cost is an important element to consider when choosing between renting and buying equipment.

How much does it cost to rent a generator? Commercial generator rental prices are typically a fraction of the cost of what&#;d it be to buy the equipment. If your business needs a generator for an upcoming project, renting can be less expensive. The specific expenses will depend on a few factors, such as the brand, age, hours of use and technology.
What is the cost of a commercial generator? The expense will depend on the specific type of generator and its size, though most will cost at least a few thousand dollars. However, this investment can pay for itself if you plan to use the generator regularly. If you anticipate needing the generator for a series of jobs in the future, buying may be the right financial choice for your organization.

Overall, it&#;s best to analyze your budget and needs so that you can select the option that makes the most financial sense for your organization.

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Considering Your Long-Term vs. Short-Term Needs

Should you buy or rent a commercial generator? The answer will depend on whether you need the equipment for the long term or the short term.

Analyze your operation&#;s specific needs. If you find your business requires generator power for the foreseeable future, it&#;s beneficial to invest in your own generator. Businesses that purchase a commercial generator and use it on a regular basis can actually save money when compared to renting long-term.

However, those who don&#;t utilize this equipment for most of their projects will likely find renting more advantageous. When your organization needs specific pieces of machinery for a short-term project, like cleaning up after a disaster, it can forgo the upfront investment associated with buying and save some capital.

Advantages of Renting a Commercial Generator

Renting a commercial generator can have many advantages for businesses:

Cost-effective for short-term needs: Instead of investing in a generator your operation needs for only a few weeks, you can save money by turning to a rental to finish the job.
Portable: Most commercial generator rentals are portable and convenient for getting electricity when and where you need it. Portability is especially important for projects in remote or challenging locations.
Ability to forego the initial investment: By choosing to rent, your business can forgo the initial investment associated with purchasing equipment that could tie up important capital and limit projects you could take on in the meantime.
No need to pay for maintenance and repairs: One of the greatest benefits of renting a commercial generator is you aren&#;t responsible for equipment maintenance and repairs. Instead, the company you rent the equipment from will cover those costs.

Disadvantages of Renting a Commercial Generator

Along with the many advantages, there are a few cons to renting equipment that businesses should be aware of, such as:

No immediate access: When you don&#;t own your commercial generator, you run the risk of downtime if your job site experiences a power outage unexpectedly. Your business will have to wait for machine availability and delivery when you rent.
Usage limits: Some rental agreements limit your usage of a commercial generator. If you need your rental around the clock, your organization will typically face higher costs.

Advantages of Buying a Commercial Generator

It&#;s a good investment to buy a generator for the following reasons:

Full ownership: One of the greatest benefits of purchasing a generator is machine ownership. You&#;ll be able to utilize your generator however you like and make any upgrades you want without worrying about a contract. You can also sell your generator in the future and enjoy a good return on investment. This can help when you want to put some money toward a new model.
Long-term savings: If your operation requires a commercial generator for a long-term project or series of projects, buying is a cost-effective solution that will allow you to have your machine whenever you need it. The one-time purchase will likely pay for itself over the course of your projects.
Constant availability: When you own your equipment, you never have to wait for rental availability or delivery. Instead, your machine is always available and you can effectively minimize project downtime.

Disadvantages of Buying a Commercial Generator

Learn about the disadvantages of buying your equipment rather than renting:

Upfront investment: If you buy instead of rent equipment, you&#;ll be tying up capital you could use for other areas of your business. For organizations that don&#;t have the money to invest in a machine, renting may be your only option.
Maintenance and repair costs: When you own your equipment, you&#;re responsible for all the costs and labor associated with maintenance and repairs. Those who rent have the benefit of turning to the rental company for these needs.
Portability: Commercial generators aren&#;t always portable. If you purchase a stationary model, your operation will have to deal with the complicated logistics of moving it from one site to another.

Turn to Mustang Cat® for Your Generator Needs

Whether you decide that renting or owning is best for your business, Mustang Cat® is your one-stop shop for power equipment in southeast Texas.

We have a huge variety of job-specific machines from trusted brands. Our equipment is well-maintained and available around the clock, and you can enjoy the latest technology with the benefit of hometown service. With locations all over Houston and the surrounding area, we&#;re always close by to help you with your heavy machinery needs.

If you need to rent or buy a commercial generator, look no further. Find a location near you or contact us to learn more today!

Commercial Generator Cost Guide - Turnkey Industries