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Diesel Generator Cost Calculator

Total the cost of running a diesel generator including fuel, servicing and capital.

About Diesel Generator Cost Calculator

Diesel generation typically costs 25 to 50 cents per kWh once fuel, servicing and capital are included — far above grid or solar. That gap is what makes hybrid solar-diesel systems attractive at remote sites. Low annual run hours make the capital component dominate, which is why standby sets have a very high cost per kWh despite modest fuel use.

Formula

Diesel Generator Cost

Total cost = fuel + servicing + annualised capital; divide by kWh generated for unit cost

annualised capital
Purchase cost spread over a 15-year life

Worked example

With the default values below, Diesel Generator Cost Calculator returns Total Annual Cost of $7,936.67. Change any input above and every figure here is recalculated in your browser.

Inputs used

Generator outputminimum 0 kW
40 kW
Run hours per yearaccepts 0–8,760 h
500 h
Average loadingaccepts 0–100 %
70 %
Fuel price per litreminimum 0
1.5
Servicing cost per running hourminimum 0
1.2
Capital costminimum 0
25,000

Results

Total Annual Cost
$7,936.67
Annual Fuel Cost
$5,670.00
Annual Servicing Cost
$600.00
Annualised Capital Cost
$1,666.67
Total Cost per kWh
$0.5669

Step by step

  1. 1Values used
  2. 2Diesel Generator Cost
  3. 3Total Annual Cost= 7,936.67
  4. 4Annual Fuel Cost= 5,670.00
  5. 5Annual Servicing Cost= 600.00
  6. 6Annualised Capital Cost= 1,666.67
  7. 7Total Cost per kWh= 0.5669

Assumptions and limits

  • The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Diesel Generator Cost calculated?

Total cost = fuel + servicing + annualised capital; divide by kWh generated for unit cost Diesel generation typically costs 25 to 50 cents per kWh once fuel, servicing and capital are included — far above grid or solar. That gap is what makes hybrid solar-diesel systems attractive at remote sites.

Why does Diesel Generator Cost matter?

Low annual run hours make the capital component dominate, which is why standby sets have a very high cost per kWh despite modest fuel use.

What values do I need to enter?

This calculator takes 6 inputs: Generator output, Run hours per year, Average loading, Fuel price per litre, Servicing cost per running hour, Capital cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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