Generator versus Grid Operating Cost Comparator
Compare the modeled direct cost of generator electricity with a grid purchase price. The tool also works backward to estimate the fuel-price threshold at which the generator's direct fuel economics would equal the grid rate.
Compare generator and grid cost
Generator versus grid result
How the comparison works
The generator's direct variable cost combines fuel intensity and fuel price. Other user-entered generator costs are then added.
Generator variable cost = Litres/kWh × Fuel price
Generator total = Energy × Variable cost + Fixed comparison cost
Grid total = Energy × Grid price
The break-even fuel price is the fuel price that makes generator variable cost equal to the grid price after allowing for the entered other generator cost.
Why break-even conditions matter
Fuel prices can change while grid tariffs can contain different commercial components. The comparison gives you a transparent threshold rather than a single conclusion that may become obsolete after one input changes.
Do not treat it as a complete tariff study
Demand charges, standby charges, taxes, network costs, startup fuel, maintenance, financing and environmental costs can materially change the economic comparison. Enter them where the simplified structure is appropriate or analyze them separately.
Limitations
- The generator fuel intensity is user-entered.
- Grid price is treated as a single energy rate.
- Fixed generator cost is allocated only to the comparison energy volume.
- The tool does not decide whether generator operation is legally or operationally permissible.
FAQs
Can the generator be cheaper than the grid?
Yes, under some fuel-price and operating-cost assumptions.
What if the break-even fuel price is negative?
That means the entered other generator cost already exceeds the grid price before fuel is purchased.
Does the comparison include startup fuel?
Only if you include it within the other or fixed costs.
Does grid price include demand charges?
No. Entering a blended effective grid rate is one way to incorporate broader grid cost into the comparison, provided the basis is consistent.