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Can my business save money on electricity by switching to a diesel generator?

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Can my business save money on electricity by switching to a diesel generator? - Solent Power UK

The recent energy crisis has forced many businesses to consider alternative energy solutions to combat the rising gas and electricity costs, which greatly affect their running costs.

For some, finding an available solution to keep the power supply at an affordable price will be the difference in whether or not they can stay in business.

Recently, Sky News’ Climate Show revealed how many businesses are being forced to turn to diesel generators to make their electricity amid the climate crisis. 

The Sky News report interviewed our very own Paul Phelps, Director of Solent Power, for an expert opinion on the current demand for diesel generators.

Is a diesel generator cheaper than electricity?

The Climate Show discovered that many companies and even some households are switching from mains power to generating electricity from diesel because it’s cheaper. Also, a fear of power cuts fuels homeowners’ and businesses’ appetite for generators.

During the programme, Sky News interviewed a food business who have been producing food for over 200 years. Speaking with the owner, Tom Newitt, they asked why he had switched to a diesel standby generator to power his business.

“We’re using a diesel generator, generating power to run the whole site. Purely down to finances and the cost because the energy costs are so high. In order for us to be competitive and stay in business, we’ve needed to save that huge chunk of our overhead.” – Tom Newitt.

When asked how much money the business was saving by purchasing a generator, Tom said, “£350,000 is our forecasted energy consumption over the year. And hopefully, on a fair wind, we should be about a third of the cost by running on diesel generators”.

With savings like that, it’s no wonder many businesses are switching to diesel engines. They can save you a lot of money compared to the rising energy cost. 

Why are businesses switching to diesel generators?

As the Climate Show discovered, more and more of our mains electricity comes from clean, frequently cheap sources like wind and solar. But the bills we actually pay have been escalated by the gas shortage.

As a result, businesses are driven to shop around for a more affordable option. Most of the businesses that are switching to generators are driven to it by the need to keep energy bills down, and diesel generation is proving much cheaper. 

When you look at power prices for businesses, the top line in this graph is the price of electricity, the bottom one diesel, and you can see how in the most recent period the cost of electricity surges upwards, increasing the gap to diesel.

Electricity Diesel Price Comparison

Should I switch to a diesel generator for my business?

A standby or portable diesel generator can protect your business from unexpected power outages, surges, and spikes. With power cuts predicted over the winter months, backup power could be essential for your business.

A generator provides a reliable source of continuous power by automatically switching to generator backup when it detects a loss of power from the grid. It does this via an automatic transfer switch.

The generated power acts as a buffer between your equipment and the incoming power, providing a consistent supply of electricity.

This helps protect your critical systems from damage caused by sudden power fluctuations or in the event of a power outage. Additionally, it enables you to maintain operations during short-term outages until you can get back up and running on the grid again.

It can also be a longer-term solution, with many completely switching off from mains power as diesel becomes the cheaper option.

What are the main benefits of a diesel generator?

1. Reliability: Diesel generators are known for their reliability, as they have fewer moving parts and require less maintenance than petrol or propane generators.

2. Durability: Diesel engines are designed to withstand tough conditions and can last for years when properly maintained.

3. Efficiency: Diesel fuel is more efficient than other fuels, meaning that diesel generators use less fuel to produce the same amount of power as other types of generators. This can translate into cost savings over time.

4. Cost: While diesel generators may cost more upfront than other types of generators, they are often cheaper in the long run due to their efficiency and durability.

5. Power Output: Diesel engines typically produce more power than other types of generators, making them a good choice for businesses that need large amounts of power or those working in remote locations with limited access to electricity.

What is the downside of using diesel generators?

Diesel generators require some maintenance to ensure they operate efficiently, but when well maintained, they will last for much longer.

They can also produce noise and emissions, so you will need to consider where your generators stand or are installed to ensure safety and lower disruption.

You’ll need to consider how you store diesel fuel safely if you are keeping a supply on the premises. And make sure you don’t run out of diesel as you won’t have a constant source like you would natural gas. 

Working with a good and experienced generator company will help eliminate any worry. They’ll be able to help with repairs and keep your generator working to a higher standard.

Is there a demand for diesel generators?

Solent Power Director Paul Phelps told Sky News the current demand for diesel generators is unheard of. Since these large energy hikes, Solent Power has seen both residential customers and, predominantly, business customers now exploring options to run their businesses from their own power generation equipment, mainly industrial diesel generators.

If you’re looking for energy solutions and have any questions, contact us here at Solent Power and we’ll be happy to help.

Paul Phelps Solar Power Owner
Paul Phelps
Paul is the MD of Solent Power and specialises in emergency power solutions, helping to protect your facilities from power loss. Get in touch with us today to discuss the different power brands that we can offer and how they can suit your needs.
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