Can You Use Red Diesel in a Generator?

Generators provide backup or off-grid power, ensuring that commercial, industrial, residential, and agricultural operations can continue. Diesel fuel is a popular generator option due to its longevity and affordability – but can you use red diesel in a generator?

Red diesel is typically cheaper than other types of diesel, making it a go-to solution for multiple industries. However, in April 2022, the laws banned most private and commercial applications from using red diesel.

Whether you can use red diesel in your generator today depends on multiple factors, and we’ll explore them in this guide.

What Is Red Diesel?

Red diesel is a fuel type suitable for off-road use, including machinery and off-road vehicles. As a low-tax fuel, it’s similar in chemical composition to white diesel, but is dyed red and has a chemical marker to ensure that the HMRC can trace illegal usage.

Because red diesel has a lower tax rate than white diesel, it’s cheaper to source.

The Differences Between Red Diesel and White Diesel:

• Composition: Both red and white diesel have a similar chemical composition, with the two being almost indistinguishable.
• Taxes: Red diesel is a heavily rebated fuel, and it’s much cheaper to source than white diesel, which falls under standard road duty taxes.
• Colour: White diesel usually has a pale yellow or clear colour, while red diesel is dyed using Solvent Red 26 or 164.
• Price: If you use white diesel, it falls under full price retail fuel, while red diesel is usually up to 50% cheaper.
• Usage Laws: White diesel is legal for all general and on-road use, while red diesel is now restricted to certain industries.

Red Diesel Regulations in the UK

Before the government changed the laws in 2022, red diesel was used across a range of industries, including manufacturing and commercial sectors. It was suitable for most off-road applications, but the new laws restrict red diesel to specific sectors.

The 2021 Finance Act restricted the use of red diesel in an attempt to combat climate change and encourage investment in more sustainable energy sources.

Today, red diesel fuel is only legal for a small number of industries and off-road applications, including marine transport, rail, forestry, and agriculture.

HMRC Red Diesel Fuel Taxation Laws

Red diesel is a significantly rebated gas oil, with the average litre costing just 11.14 pence, compared to white diesel’s average price of 57.95 pence per litre. Red diesel is an attractive prospect because the costs are much lower, and the HMRC takes misuse seriously.

HMRC has the power to monitor suppliers, perform on-site and roadside inspections, and collect fuel samples for testing.

Examples of Legal Use

If any of the following categories apply, you can still likely use red diesel:

• Agriculture: If you work in the agriculture, fish farming, horticulture, and forestry sectors, red diesel usage is legal for powering machinery that grows/manages land, as well as for tractors and harvesters.
• Marine Transport: You can also power ships and boats with red diesel.
• Rail Transport: Trains and select maintenance vehicles are exempt from red diesel laws.
• Non-Commercial Premises: Community centres and places of worship may use red diesel to generate electricity. In some cases, off-grid homes can also leverage it for power generation, but this is subject to set conditions.
• Emergency Services: Hospitals and emergency services can use rebated diesel if the emergency backup generator is licensed.

Examples of Illegal Use:

• Construction Sites: You can’t use red diesel to power construction machinery, including lighting, cranes, and on-site generators.
• Factories & Industrial Units: The new laws also restrict the use of red diesel in factories and industrial units – even if you rarely use the generator.
• Data Centres and Offices: Unless you have permission from the HMRC, you can’t use red diesel as a commercial heating fuel. This includes heating and power generation for offices and data centres.
• Events: Festivals and other events can’t use generators for a temporary power supply.

Can I Use Red Diesel for my Residential Property?

It’s no longer legal to use red diesel for a residential property, unless your property is eligible for rebated gas oil. For example, a residential home that uses backup generators for power cuts can’t use red diesel anymore, unless it’s an off-grid property or farm.

If you’re unsure whether your home qualifies for red diesel usage, you should check the legislation, as using it can result in legal action.

What Happens If You’re Caught Using Red Diesel Illegally?

Since the 2022 law change, there are penalties for illegally purchasing red diesel and using it to power vehicles and unlicensed applications, including:

• Fines: The general fine for using red diesel fuel is £250 per offence. However, you’ll also need to cover any tax duties owed, and severe offences can result in unlimited fines. For example, you’ll have to pay the difference in duties between red and white diesel fuel for the length of time you use it.
• Seizures: If you use red diesel fuel in a vehicle, the authorities can seize it and won’t return it unless you pay the fee.
• Restoration Fees: You’ll also need to pay to remove red diesel from your fuel tank and clean the filters.

If the government determines deliberate fraud, you could face criminal charges and a prison sentence of up to two years.

What are the Alternatives to Purchasing Red Diesel for Generators?

While the new laws on red diesel mean that many businesses have to pay more to power their generators, some alternatives are cleaner and offer more compliance.

White Diesel Fuel

White diesel – also known as standard road fuel – is chemically similar to red diesel, making it the most convenient alternative. Regular diesel has no legal restrictions, and you can use it for your generator’s fuel system. However, white diesel costs more per litre.

Hydrotreated Vegetable Oil (HVO)

HVO fuel is a substitute for regular diesel, created from vegetable oils and waste fats. It’s legal for all generators and is a renewable fuel source, resulting in a cleaner burn. While HVO costs more upfront, you can save money through environmental levies.

However, the main drawback of hydrotreated vegetable oil is its limited availability in certain regions.

Biofuels and Renewable Diesel Alternatives

Biofuels, solar power, and battery-backed generators are all popular options for generators. Each is an environmentally friendly fuel, ensuring lower emissions. However, it depends on availability and how often you use the generator.

How to Switch from Red Diesel to White Diesel or HVO?

Many organisations and private residences have faced implications of the red diesel fuel ban, but switching to white diesel or HVO is a relatively simple process. Here are the steps you should take to ensure a smooth transition:

Step 1: Drain and Clean Your Fuel Tank

You’ll need to drain any red diesel from the generator tank or fuel storage tanks. It’s important to remember that even a small amount of red dye can result in compliance issues and penalties. Once the diesel is fully drained from the tank, you should clean it to remove any red diesel residue.

Step 2: Prevent Contamination

The next step is to prevent cross-contamination of white and red diesel fuel. For example, some operations might use both types, with the red fuel still being legal for agricultural applications. It’s essential to clearly mark your fuel tanks and use separate equipment to prevent contamination.

Using labels and colour-coded caps can keep both sources separate; you should also implement procedures for employees to follow.

Step 3: Keep Records to Ensure Compliance

Businesses that use diesel generators should maintain accurate records to ensure compliance. For example, if the authorities want to check that you switched from red to white diesel, keeping fuel purchase receipts, maintenance logs, and tank-cleaning certificates is beneficial.

Remember to note the date you last used red diesel and when you introduced white diesel or an alternative fuel source.

Contact Solent Power For Support

If you’re transitioning from red diesel fuel to a different source, our experts offer specialist fuel services that simplify the process. We have the knowledge and equipment to ensure a seamless transition and keep your business compliant.

Please get in touch with us today to discuss your needs.