Should Your Business Invest in a Commercial Backup Generator?
Power outages can disrupt operations, reduce productivity, and lead to costly losses for your business. A commercial backup generator can provide reliable power, but is it the right investment for your needs?
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Key Takeaways
A commercial backup generator helps businesses maintain operations during power outages by keeping critical systems online. It can protect data, prevent inventory loss, and reduce downtime-related revenue loss. However, generators come with upfront costs, ongoing maintenance, and potential efficiency and emissions concerns. Evaluating your outage risk, industry needs, and ROI is key to deciding if a generator is a smart investment.
- Backup generators provide reliable power during outages, helping maintain productivity and protect critical systems.
- Businesses in industries like healthcare, data services, and food storage benefit most from continuous power.
- Upfront costs, maintenance, emissions, and efficiency should be carefully considered before investing.
- Calculating outage-related losses and ROI can help determine if a generator is worth the investment.
Reliable Electricity for Your Business
Reliable energy is essential for every business — even a short power outage can result in lost sales or damaged inventory. Since many modern companies rely on electronics for daily operations, an unexpected power loss can lead to a significant drop in productivity. Your customers may also be affected; without electricity, it can be difficult to answer questions and provide essential account services.
As the grid ages and extreme weather events become more common, the risk of power outages is rising. A commercial backup generator is one way to guarantee continuous power for your business and prevent operational losses when the grid goes down.
The Benefits of Investing in a Generator
A commercial generator acts as a backup electricity during power outages to allow business continuity. It kicks in automatically when your primary power source goes down.
For companies that depend on electricity for core operations, a generator is an essential piece of equipment. In a grocery store, for example, a generator can ensure constant refrigeration and prevent food from spoiling.
A backup generator for business requires a considerable investment, but it also offers valuable benefits:
Protecting Data
Maintaining Productivity
Keeping Critical Systems Online
Potential Drawbacks to Consider
Before you decide to purchase a backup generator for a commercial building, weigh the benefits against the potential drawbacks:
Emissions
Energy Efficiency
Costs
Industry-Specific Considerations
Power outages impact certain industries more than others. Businesses that rely on power for core operations — particularly if they have limited operational flexibility — are most affected. When the electricity is down at a manufacturing facility, for example, business comes to a stop.
Industries that deal in sensitive or critical information, such as financial services providers and data centers, are also vulnerable to power outages. Because these companies operate in the digital space, they need 24/7 electricity to serve customers efficiently. If a financial institution can’t power its online banking system, it could affect customer payments, account access, and transfers. An outage also affects cybersecurity protections, putting sensitive information at risk of exposure or theft.
Control systems are another sector that requires reliable power outage solutions. The travel sector is an important example. If the Transportation Security Administration (TSA), the Federal Aviation Administration (FAA), and air traffic control towers lose power, it could cause significant nationwide disruptions. In fact, the FAA requires certain airports to install backup generators to power the control tower, lights, and safety systems. The Federal Communications Commission (FCC) requires emergency services providers including 911 to have a system that can provide 24 hours of standby power.
Reliable electricity is also essential for companies that handle perishable items, including food and medications. The same goes for logistics, shipping, and distribution companies that operate temperature-controlled facilities. Without power, businesses stand to lose vast amounts of expensive inventory — which could disrupt deliveries and compromise customer relationships. Backup generators can help, but business owners must pay close attention to food safety and building safety regulations when choosing a model.
Cost-Benefit Analysis
The average commercial generator cost ranges from $5,000 to more than $50,000, depending on your fuel, efficiency, and capacity requirements. To determine if a generator is a good investment, calculate the return on investment (ROI):
Estimate the annual cost of power outages for your business
Determine ROI
Understanding Regulatory and Compliance Factors
Generators for commercial buildings may be subject to a variety of local, state, and federal laws and regulations. As you’re researching options, consider how you’ll be impacted by:
- Local building codes and zoning laws
- National Fire Protection Association (NFPA) standards
- National Electric Code (NEC)
- Local noise regulations
- Environmental regulations for emissions
These regulations govern commercial backup generator installation, selection, and placement. Local laws may require you to get specific inspections or permits.
Your industry may also be subject to specific regulations. For example, generators in hospitals and healthcare facilities must adhere to a variety of NFPA standards. NFPA 110 determines how soon a generator must restore power to critical systems, including life-support systems.
Final Thoughts: Is a Generator Right for Your Business?
A commercial backup generator has important business benefits, but it’s not necessary for every company. As you’re deciding whether to invest, it’s important to weigh the cost of a generator against the frequency of power outages in your area, the potential financial losses, and any relevant regulations that impact your industry or location. Your budget constraints and energy needs may also factor into the equation.
Need help making a decision? Connect with a risk management specialist at Integrity Energy. For help managing energy costs, compare commercial energy suppliers to find the most competitive rates.
Explore Your Business Energy Options
Energy markets are evolving quickly, creating new opportunities for your business. Compare your options to find a reliable, cost-effective energy plan that fits your needs.
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Jordan Domingo
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