The Hidden Cost of Temporary Power: Why Generator Hire Rates Tell Only Half the Story
- 3 days ago
- 3 min read
When comparing temporary power solutions, most project managers focus on one number:
The generator hire rate.
But, after supplying power to construction sites, compounds and remote facilities, we’ve found that the hire rate is often the smallest part of the total cost.
The real expense is usually fuel, servicing and the labour required to keep generators running.
THE KEY POINT The cheapest generator to hire is often the most expensive generator to operate. |
A Typical Site Load
Many temporary site facilities require:
5-10 kW during the day
1-3 kW overnight
This might include:
Site Office
Crib rooms
Communications equipment
Lighting
Security systems
Environmental monitoring equipment
Yet it is common to see these loads powered by a 40 kVA diesel generator operating 24 hours a day, seven days a week.
The problem is that diesel generators are rarely efficient at light loads.
They continue consuming fuel regardless of whether the site is using 2 kW or 20 kW.
What Does That Really Cost?
Let’s assume a conventional 40 kVA generator consumes an average of 4 litres of diesel per hour and delivered fuel costs $2.00 per litre.
Running continuously, that generator uses:
DAILY FUEL USE
96 L
ANNUAL FUEL USE
35,040 L
ANNUAL FUEL COST
$70,080
And that’s before accounting for:
Fuel deliveries
Fuel storage
Labour to distribute fuel around site
Generator servicing
Downtime
Asset wear and tear
On many projects, fuel costs exceed the equipment hire cost.
A Smarter Approach
The FPS20-20 Hybrid Power System
40 kWh battery storage
10 kW solar generation
Intelligent generator control
Rather than running continuously, the diesel generator only starts when battery charging is required.
The result is dramatic.
Across multiple deployments, we are seeing generators start approximately three times per week for around one hour each time.
That equates to:
Just 156 generator operating hours per year.
Compare that with a conventional generator operating continuously:
System | Generator Hours Per Year |
Conventional Generator | 8,760 hours |
156 hours |
That’s a reduction of approximately 98% in generator runtime.
Why Runtime Matters
Every hour a diesel generator operates costs money.
Reducing runtime means:
Less Fuel
The most obvious benefit is fuel savings.
Less generator operation means dramatically lower fuel consumption and fewer fuel deliveries.
Less Labour
Fuel doesn’t magically appear in a generator.
On many projects fuel is:
1. Delivered to a bulk storage tank
2. Transferred to trailers or service vehicles
3. Distributed to generators by site personnel
Every transfer requires labour, equipment and administration.
Reducing fuel consumption reduces all three.
Less Servicing
Many generators require servicing every 250 to 500 operating hours.
A continuously operating generator can require multiple services during a deployment.
At 156 operating hours per year, servicing requirements become almost negligible.
Longer Asset Life
A generator running 24 hours per day accumulates wear quickly.
A generator running only a few hours per week can remain in excellent condition for many years.
For hire companies, that means:
Lower maintenance costs
Higher fleet availability
Improved reliability
Better return on investment
The Question Every Project Should Ask
Instead of asking:
“What is the weekly hire rate?”
Ask:
“What will temporary power cost over the life of the project?”
For projects lasting 6 to 18 months, the answer can be dramatically different.
The cheapest generator to hire is often the most expensive generator to operate.
When fuel, labour, servicing and asset wear are considered, hybrid power systems frequently deliver savings far beyond their initial hire cost.
That’s why more project owners are now measuring total operating cost rather than simply comparing equipment rates.
Calculate the Real Cost of Temporary Power
We can assess your expected site load, operating hours, fuel requirements and project duration to compare conventional and hybrid power options.
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