Diesel Genset vs Grid Cost
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The genset runs, production breathes, and the diesel bill eats the margin. Price each DG unit against your grid unit rate before calling backup power free.
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The formula we use
dgPerUnit = dieselPrice / kWhPerLitre + maint
monthlyPremium = (dgPerUnit - gridRate) * dgUnits
- Does not value production saved during outages.
- Specific generation changes with loading, alternator condition and maintenance.
- Grid demand charges remain even when DG runs.
Typical numbers
Reference figures to sanity-check your inputs. Your own bill and equipment data always win.
BEE's MSME guideline gives recommended DG specific electricity generation rates around 3.0 to 3.88 kWh per litre for 120 to 1,450 kVA diesel generator sets.
Source: BEE MSME Guidelines, 2019
BillTrends' DG module uses 3.2 kWh/litre as the target SEGR screening default.
Source: BillTrends default model
At 3.2 kWh/litre, DG fuel cost per unit is diesel price divided by 3.2.
Source: BillTrends default model
BEE recommends daily measurement of DG electricity generation and diesel consumption.
Source: BEE MSME Guidelines, 2019
BillTrends' fallback DG sequencing default screens 8% annual diesel reduction when measured kWh/litre data is absent.
Source: BillTrends default model
Common questions
How do I estimate DG units per litre?
Use a measured fuel log and DG meter reading if available. The example value is only a starting point and must be edited.
Why include maintenance per kWh?
Diesel is not the whole DG cost. Filters, oil, service, wear and loading issues add to the real per-unit cost.
Does this include outage loss avoided?
No. This compares DG energy cost with grid energy rate. Production loss is a separate decision.