If you are losing power for your house, business, or activities happening outdoors, you can see how choosing the right generator can make all the difference. Naturally, a natural gas generator, a gasoline generator, or a diesel generator has its own advantages and disadvantages, especially with respect to fuel efficiency and operational costs. It is very important to have a clear understanding of these differences for you to pick what fits your purpose the best. In this article, we will talk about the cost implications of running a natural gas generator or a gasoline generator, with diesel as a competitor option. So, depending on what stands important for you, from reliability, fuel availability, or long-term expenses, this will help you decide.
Understanding Generator Types
Categorized according to various fuel types, they can be divided into three types: natural gas, gasoline, and diesel.
Natural Gas Generators
This kind of generator is most efficient for longer, consistent runs and is often hooked directly to a natural gas line. Hence, they generate fewer emissions and are thus the environmental option. But then they do require access to an uninterrupted supply of natural gas, something which may sometimes not be available, during, say, an emergency.
Gasoline Generators
The generators run on gasoline and may be moved from one place to another because they serve brief or small purposes. Fueling is one thing because the gasoline is widely available everywhere. In turn, gasoline is an expensive fuel and also has a shorter shelf life than anything else. Besides, these generators might emit high emissions and become more harmful to the environment if used for a longer duration.
Diesel Generators
Diesel generators, by nature, are highly durable and fuel-efficient, especially when heavily loaded. They are usually the primary consideration in commercial and industrial applications. Diesel fuel tends to be more stable and energy-dense, but the generators may operate noisily, with a higher purchasing price.
Selecting the generator type of your choice really depends on what is more or less important to you, be that usage duration, availability of fuel, or just what you can afford. So, each type really has a set of advantages when looking for one with specific characteristics.
Cost to Run Different Generators

There is a widespread notion regarding the cost of power generation, which vastly differs with the type of fuel, the fuel’s price at the moment, and the generator’s fuel economy.
- Natural Gas Generators: Usually, these power plants are cheap to operate as natural gas is generally cheaper than other fuels. However, their cost differs between $0.06 and $0.08 per kWh, on average.
- Gasoline Generators: Gasoline is more expensive and inefficient. The cost of operations averaged between $0.10 and $0.15 per kWh of power generated.
- Diesel Generators: Depending on local diesel price and efficiency of the generator, it may be more cost-efficient than gasoline to run $0.08-$0.12 per kWh.
These figures give a general estimate that may vary based on the location of installation, fuel availability, and specifications of the generator.
Cost of Running a Natural Gas Generator
For the power generation operation, costly gas generators are stiff and efficient. Some factors that affect fuel prices, the efficiency of the generator, market conditions in the surrounding area, include the cost of running a generator-equipped natural gas plant, usually ranging from some $0.06 to $0.10 per kWh. Compared as fuel per energy unit, natural gas comes a little cheaper than gasoline or diesel and operates as a steady power supply for use in both household and commercial applications. Plus, things like maintenance are less on a cleaner-burning fuel basis with engine wear and tear from soot buildup, so it doesn’t harm the environmental aspect much either; those are the factors contributing to communities favoring cheap but large-scale high-demand energy for purposes of need.
Cost of Running a Gasoline Generator
Running a gasoline generator will depend on consumption, the efficiency of the generator, and gasoline prices in that region. A gasoline generator, on average, consumes 0.1 to 0.2 gallons of fuel per hour for every kilowatt, meaning a 5-kilowatt generator would use about 0.5 to 1 gallon of gasoline per hour. With a gasoline price now averaging about $3.80 per gallon in the United States, depending on use and electrical demand, it can cost between $15 and $30 a day to operate this generator for 8 hours.
Maintenance should also be taken into account, as gasoline generators will often require oil changes, filter changes, and tune-ups on a regular basis. This can increase operational costs over time. The total cost for a homeowner or small business can vary tremendously depending on hours of use, gasoline price fluctuations, and generator efficiency. Fuel and maintenance costs essentially comprise the expenses that one needs to consider in determining the real cost of using a gasoline generator.
Diesel vs Natural Gas Generators Cost
Many factors contribute to the price comparison between diesel and natural gas generators: fuel price, maintenance, and upfront investment. A diesel generator, traditionally, has a higher purchase price, and durability and efficiency are among its selling points, promising to be a long-term solution. Diesel fuel has an energy content advantage over natural gas, providing the fuel at a lower operational cost over the long run, especially when in heavy use.
Natural gas generators, in these scenarios, find mostly lower fuel price alternatives, as it is normally cheaper and more stable in price when compared to diesel fuel. Moreover, it produces less pollution since natural gas is cleaner burning than diesel; less pollution can reduce costs for environmental compliance. Yet at the same time, the need for more frequent maintenance and potential problems are issues that might occur, such as carbon buildup in the engine.
Currently, diesel fuel commands a price of approximately $4.50 per gallon; in contrast, natural gas commands a price of about $11 per thousand cubic feet (MCF). From the perspective of fuel cost differences, diesel generators are renowned for having a higher thermal efficiency, meaning they produce a greater amount of electricity from a given amount of fuel energy. Cost for infrastructure must be considered by users as natural gas generators need to have a gas supply line available to them, which could prove to be very expensive if installation is required.
Cost-effectiveness of each type varies with respect to the needs of the user, operating hours, and fuel availability. These factor,s on the whole,e will assist in choosing the most feasible and economical answer between diesel and natural gas generators.
Factors Influencing Generator Costs

- Fuel Type: Diesel-powered generators gave better fuel efficiency and hence had comparatively lower running costs, while gas-powered ones may be cheaper in locations where natural gas is available in abundance and at cheap rates.
- Initial Purchase Price: Diesel generators tend to have higher purchase costs than natural gas generators, and yet durability may offset this to a degree over time.
- Installation Expenses: The installation cost for natural gas generators goes up quite a bit if a gas supply line is not already there. While diesel generators tend to be set up in a remote place without much difficulty.
- Maintenance Requirements: Diesel generators need more regular and intricate maintenance due to fuel quality issues, whereas the natural gas generators require less frequent servicing.
- Lifespan and Durability: Diesel generators typically last longer because they are made stronger; hence, they are preferable in high-demand, long-term-use scenarios.
Consideration of these factors will make the buyer of a medium-text decision under the considered requirements and situations.
Fuel Prices Comparison
Fuel prices can greatly influence the total cost of operating a generator over a period of time. In general, the operational costs will be higher with diesel or mazut than with natural gas when the operation is long-term. Diesel is still being sold at a price of about $4 per gallon in many states, depending on the local taxes and supply conditions. Conversely, natural gas prices are generally on the lower side and are steady in nature, amounting to roughly $11 per thousand cubic feet (MMBtu). This fine price makes natural gas more ideal for continuous operations where there is a steady supply of fuel.
Moreover, natural gas prices go through less dramatic changes compared to diesel prices, which means more predictability bill-wise. However, it is worth noting that, of course, there have been regional variations in cost, and this affects whether road, pipeline, or delivery truck infrastructure is easily available. Looking at these factors in relation to operational needs will help to make a balanced and wise decision.
Generator Efficiency
This is how generator efficiency is a measure of how well a given generator converts input fuel energy into usable electrical energy. However, modern gas and diesel engines are typically operating with efficiencies somewhere from 30 to 40% depending on the design considerations, size, and load conditions of the system. For instance, large-scale diesel generators can reach efficiencies close to 43% when operated near optimal load conditions. But in some instances, natural gas generators are a little less efficient at 35%-38%. On the flip side, the cleaner-burning nature of natural gas means that these engines tend to have lower emissions.
A generator’s efficiency depends on different factors such as an ongoing maintenance schedule, fuel types, and the kind of generator used. However, combined heat and power systems are becoming popular for their overall 60%-80% efficiency by utilizing waste heat. These advancements bring attention to the fact that choosing the appropriate generator technologies can ensure maximum energy output within operational requirements.
Maintenance Requirements
Maintenance is important to ensure generators remain in good working condition for extended periods. Properly scheduled maintenance can minimize downtime, enhance efficiency, and reduce operational expenses. Checking and replacing the air and fuel filters, concerning smaller engines spark plug inspection, and along with oil analysis for the lack of engine wear, in these sorts of important maintenance duties must be handled. Research has shown that hesitating with maintenance may cause a 10 to 15 percent loss in fuel efficiency over time. Aside from this, with the improvements and development in the diagnostic tools, along with monitoring systems, predictive maintenance has become a key factor now, allowing operators to take care of the problem before it develops into expensive failures. The new way of maintaining really extends the life of the generator and allows it to produce energy even in the toughest situations.
Long-Term Savings and Environmental Benefits
Proper maintenance and energy-efficient technologies and setups offer huge long-term savings by keeping repair charges down, carrying out work faster, improving fuel efficiency, and offering some downtime, if at all. Modern solutions further aid in emission reductions, thereby imposing less environmental damage with regard to energy generation. Thus, a dual benefit is achieved: operational cost savings along with sustainability, in line with environmental regulations and goals.
Cost-Effectiveness of Natural Gas
Natural gas is a cheap alternative to energy and is eco-friendly in nature. With rising energy demand worldwide, natural gas continues to be one of the most affordable options, often even cheaper than electricity and heating oil. According to some energy reports, natural gas in the U.S.A. fetches something less than $12 per thousand cubic feet. This cheap rate makes natural gas a preferable option for CPU households as well as big organizations. Next comes the advantage of higher efficiency of gas-consuming appliances such as furnaces and water heaters, where tremendous amounts of savings in electricity bills can mount over time.
In an industrial setting, natural gas is preferred for a steady supply against oil markets that are unpredictable in pricing. It gives a high amount of energy and burns cleanly, making it the best fuel for power generation and manufacturing. The growth of infrastructure for LNG exports has also given further support to LNG being kept cheap in international markets, thus supporting the idea of cost-effectiveness globally. Such factors help in making natural gas a practical energy solution in economics for functions being short and for time being long.
Environmental Impact of Different Fuels
Fuels differ significantly with respect to their environmental impact, mainly based on their emissions and sustainable footprint. Coal, being one of the most carbon-intensive fuels, emits somewhat over 2.21 pounds of CO2 per kilowatt-hour of electricity generated. Oil ranks just slightly less, with a figure of 1.56 pounds of CO2 per kilowatt-hour. On the other hand, it is said that natural gas, still a fossil fuel, is cleaner than either of them, emitting only around 0.91 pounds of CO2 per kilowatt-hour – almost half compared to coal and oil.
Renewable energies are characterized by zero to very low amounts of greenhouse gas emissions during their operation. Wind and solar alternating currents are generated without any direct CO2 emissions, making them highly sustainable alternatives. On the other hand, hydropower may be an exception because while the energy production itself is clean, it sometimes poses a threat to local ecosystems and the biodiversity of water bodies.
The case of biofuels gets complicated. However, burning biofuels does generate CO2, which is somewhat offset in the natural carbon cycle as the plants used to make biofuels absorb CO2 in their growth phase. Large-scale biofuel production, however, worsens deforestation and land-use changes, which in turn negate some environmental gains.
To evaluate the environmental effects of various fuels, one must have a holistic view, considering production, consumption, and long-term consequences. For the orderly march towards sustainability, there is a pressing need to reduce high-emission fuel dependence and invest in clean renewable energy technologies.
Evaluating Long-Term Financial Benefits
Investments in renewable energy technologies enrich the environment and have the capability to yield lucrative returns in the distant future. In the sense that solar photovoltaic systems saw a drop in the system costs by more than 80 percent within the last decade, thereby increasingly putting solar among prime energy sources and making it affordable to businesses and households. Likewise, wind energy proceeded on the path of being cost-reductive, with onshore wind power methods in many areas now becoming one of the cheapest sources of energy.
The switch to renewable energy diminishes the reliance on fossil fuels, which tend to have volatile market prices. Recent data indicate huge savings in energy-wise expenditures for entities that shift to clean energy solutions. Besides, government grants, tax credits, and subsidies make the incentives for switching to renewable energy all the more lucrative.
On the other hand, industries adopting renewable technologies for their processes would, in the long term, see the operational cost come down. Since the maintenance costs of solar panels and wind turbines are considerably lower compared to the huge maintenance costs of conventional power plants, it renders long-term economic benefits to the industry. Thus, these advancements show the fact that the investments in clean energy ensure sustainability as well as financial resilience.
Making the Right Choice for Your Needs
There are three main determining factors when choosing the most viable renewable energy system for a given need:
- Location – Check what natural resources are available locally. For instance, solar panels are very useful in sunny areas, while wind turbines work better where wind occurrences are steady.
- Energy Requirements – Calculate how much energy you use and choose a system to accommodate your usage. Larger systems like solar arrays or hybrid solutions may be suitable for heavier consumption; smaller systems will suffice for the lighter ones.
- Budget – Weigh the initial cost as well as the possible savings in the long run. Most renewable energy options have huge upfront investments, whereas with the passing of time, it will result in more savings and lower energy bills, coupled with tax incentives.
The alignment of these factors with your goals will take you to the decision that best suits your energy needs and sustainability objectives.
Assessing Your Power Needs
Defining the power requirements for a system needs one to understanding the energy consumption in a household or business. The average energy consumption in a U.S. household draws a rough estimate of 10,632 kilowatt-hours (kWh) annually, thus being around 886 kWh during a month. However, this figure could vary extensively depending on the locality, weather conditions, and usage style employed.
To get a clear understanding of what you need, go through the electricity bills to see when the pattern of consumption is during the year in terms of kWh. Breaking it down further, identify some heavy appliances such as air conditioners, heaters, refrigerators, and washing machines. To illustrate, air conditioners themselves may account for around 3,000 kWh in places where it gets hot, shedding light on the importance of considering such large-scale energy consumption.
Also, remember any design implications for enhanced energy usage, say, if electric vehicles will be on site or if other major energy-consuming appliances will be used. Peak energy use estimation also matters since renewable energy setups, like solar systems or wind turbines, are meant to meet not only average consumption but sometimes overpowered demand.
With all this information in mind, one can establish the appropriate size for their energy system that would ensure that it is reliable, effective, and cheap, while on a minimal side of waste.
Generator Installation Considerations
Several aspects must be evaluated while installing a generator to ensure it is safely and efficiently operated. It is vital to choose the right size of the generator to be chosen. In small home units, a generator with a capacity of around 5,000-7,500 watts suffices to operate the essentials such as the refrigerator, lighting, heating, and air-conditioning. However, bigger homes with more power requirements will have to go with generators of power greater than 20,000 watts.
Use of sound-dampening materials might be considered. Another important factor is the placement of the generator. Generators should be placed outdoors on level ground, at least 5 feet away from all doors, windows, and vents to minimize carbon monoxide hazards, as suggested by the National Fire Protection Association (NFPA). Of course, the noise level is another consideration!
Integration with a reliable fuel source is essential. Your generator may run on diesel, natural gas, or propane. Each type of fuel will give you advantages in terms of availability, storage, and efficiency. It is suggested to consider backup fuel storage in case of an extended outage. Today’s generators come with ATS (automatic transfer switch) options for a slick transition of power during outages, thereby increasing system reliability.
Replacing an incorrect erection code and improper electrical code with the correct ones is imperative for installation. Consult a certified electrician for wiring, grounding, and system integration issues; otherwise, one faces serious hazards to safety and to legislation. With regular maintenance, oil changes, filter changes, and performance checks, you can keep your generator alive and well while ensuring that it serves in a critical situation.
Choosing Between Natural Gas, Gasoline, and Diesel
Some considerations when choosing a generator fuel type may centre around fuel availability, efficiency, cost, and environmental impact. Each fuel type, be it natural gas, gasoline, or diesel, has its specific advantages and disadvantages, depending on its application and location.
Natural Gas
Natural gas is often labeled as convenient and environmentally responsible. It burns cleaner than gasoline or diesel, thereby reducing greenhouse gases and particulate matter emissions. Most homes and businesses have an enclosed natural gas line that requires no fuel storage on-site. Additionally, they tend to be quieter when running. However, unavailability can arise in regions where gas infrastructure is absent, and surprisingly, during emergencies, they highly depend on the continuity of the gas supply.
Gasoline
Gasoline generators are a preferred alternative because of are truly portable and widely available. Gasoline is easy to buy from local gas stations, and so it works best for residential or portable generators. These generators tend to be less expensive to purchase but are less efficient and expensive to operate over the long run due to varying fuel prices. Gasoline also has the shortest shelf life compared to diesel or natural gas and requires stabilizers if kept for extended periods. Another characteristic of gasoline is that it burns hotter, and that could accelerate wear on the generator’s components.
Diesel
Diesel generator types are best known for their durability and fuel efficiency, especially for long-term and industrial use. Diesel engines usually last longer as they run at a lower RPM and find it easier to bear heavy loads. Diesel fuel has a longer shelf life than gasoline and provides better energy output per gallon of fuel, which makes it great cost-wise over time. Diesel generators are more expensive to buy, and they also need to be well-maintained to ensure they are working to the required standard. Moreover, since diesel burns pollute more, although modern developments like first-grade exhaust systems and biodiesel blends are improving in this area.
Key Comparison of Generator Fuel Types
Feature |
Natural Gas |
Gasoline |
Diesel |
---|---|---|---|
Availability |
Dependent on pipelines |
Widely available |
Readily available in bulk |
Fuel Cost |
Stable |
Moderate to high |
Moderate over time |
Efficiency |
Moderate |
Lower |
High |
Environmental Impact |
Cleanest option |
Higher emissions |
Significant emissions (improving with biodiesel) |
Shelf Life |
N/A |
Short |
Long |
Upfront Cost |
Moderate to high |
Low |
High |
Maintenance |
Low to moderate |
Moderate |
Moderate to high |
Choosing the right generator fuel largely depends on your special power needs, budget, and environmental considerations. For instance, natural gas might well serve areas of infrastructure, whereas diesel runs better for off-grid or industrial uses. Meanwhile, gasoline is the most common for short-term or portable usage.
Reference Sources
-
Evaluating the Profitability of Natural Gas Combustion Turbine Generators – Rochester Institute of Technology (RIT)
This study discusses how the affordability of natural gas lowers the marginal cost of generators, making them a cost-effective option. -
Power Struggle: The Electric Grid’s Natural Gas Challenge – University of Pennsylvania
A detailed analysis of the growing reliance on natural gas for electricity generation and its cost implications. -
True Cost of Energy Comparisons – Oklahoma State University Extension
This resource provides a breakdown of energy costs, including natural gas, electricity, and propane, for a clear cost comparison.
Frequently Asked Questions (FAQs)
Is it cheaper to run a generator on natural gas compared to propane?
Yes, running a generator on natural gas is often cheaper than propane due to the lower cost of natural gas supplies. Additionally, natural gas typically burns more efficiently than propane, which can contribute to reduced overall running costs.
What is the cost of running a generator using natural gas?
The cost of running a generator on natural gas varies depending on local rates. Typically, you can expect to pay per cubic foot of natural gas consumed. For a whole house generator, this cost can range significantly based on usage and the price of natural gas per hour.
How much natural gas does a generator consume per hour?
A generator’s fuel consumption depends on its size and load. On average, a whole-home generator consumes about 100 to 200 cubic feet of natural gas per hour when running at full capacity. This can vary based on the generator’s efficiency and the electrical load it’s powering.
What are the installation costs for a natural gas generator?
The installation cost for a natural gas generator can vary widely based on factors such as the type of generator, the complexity of the installation, and local labor rates. Generally, you might expect to pay between $2,000 and $5,000 for a complete natural gas generator installation.
How does the cost of a natural gas generator compare to diesel or gasoline generators?
Natural gas generators often have lower operating costs compared to diesel and gasoline generators. While the initial purchase price for diesel generators may be lower, the running costs for natural gas are generally cheaper due to the lower cost of fuel and less maintenance required.
Can I run my whole house generator on natural gas?
Yes, many whole-house generators are designed to run on natural gas. They provide a reliable power source during outages and can be connected to your home’s natural gas line, offering a constant supply of fuel without the need for storage tanks.
What factors influence the running cost of a natural gas generator?
The running cost of a natural gas generator is influenced by several factors, including the price of natural gas per cubic foot, the generator’s efficiency, and the load demand. Additionally, maintenance and operational efficiency can impact overall costs.
How does the cost of fuel for natural gas compare to gasoline?
The cost of fuel for natural gas is typically lower than the cost of gasoline. When comparing the price of natural gas per 1000 cubic feet to gasoline prices, natural gas generally provides a more cost-effective option for running generators.
What type of generator is best for residential use?
A natural gas generator is often considered one of the best options for residential use due to its efficiency, lower fuel costs, and ability to provide a steady supply of power. Additionally, natural gas generators require less maintenance compared to gasoline and diesel generators.