Should I buy a generator or a solar inverter system?

Except you want to impress the girl or boy next door with how loud your generator can roar, it's clear that solar inverters are generally cheaper in the long term, though they come with a higher initial cost compared to generators, which are cheaper upfront but more expensive over time, assuming the same power capacity for each.

This means that if you get a generator that can produce “10 units of electricity,” it would be cheaper initially than a solar inverter, which can also produce the same “10 units of electricity.”

Since we've established that already, the rest of this article will show factors that can affect the scales as to which option is cheaper and why.

By the end of this article, you will:

1. Understand why solar is generally more economical in the long term.
2. Identify situations where generators are more economical, both in the short and long term.
3. Have a clear understanding of what choice is best for your power needs.

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Factors Affecting the Cost Efficiency of Solar Inverters and Generators

1. Initial Costs

• Generators: Generators have a lower upfront cost. A typical small generator (1-2.5 kW) might cost around ₦150,000 to ₦400,000.
• Solar Inverters: A comparable medium solar system (1-2.5 kW), including solar panels and installation, can cost between ₦500,000 and ₦1,000,000.

These are conservative estimates, We all know how prices are in Nigeria. Yesterday’s price is not today’s… [continue the rest]. Let’s move to the next factor on our list.

2. Operating Costs

• Generators: Generators require regular fueling, maintenance, and oil changes. Over a year, the cost of fuel alone can exceed the initial purchase price, especially with rising fuel prices.
• Solar Inverters: Solar inverters have minimal operating costs. The sun provides free energy, and maintenance costs are relatively low. Periodic cleaning of the panels and occasional inverter maintenance are usually sufficient.

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The above graph estimates the cumulative cost of running a solar energy solution vs a generator set to power 800W of load 9 hours every day in a house over a period of 10 years.

Load comprises of: 

• 42-inch LED TV: 80 watts
• DSTV Explora consumes: 45 watts
• Laptop: 65 watts
• Freezer (Inverter compressor): 245 watts
• Ceiling fans: 75 watts
• 10x energy efficient light bulbs: 90 watts (9 watts each)
• 200w for allowance

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Please note this estimate does not include maintenance cost. In general generator sets require more maintenance

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3. Environmental Impact

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• Generators: Generators emit greenhouse gases and other pollutants, contributing to air pollution and climate change. Noise pollution is another concern.
• Solar Inverters: Solar inverters are environmentally friendly, producing clean, renewable energy with no emissions. They also operate silently, making them suitable for residential areas.

You don’t need to act all righteous like you care about the environmental impacts of your choice. But if you do, you are saving the planet for future generations to come.

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4. Reliability and Energy Independence

• Generators: Generators can provide reliable power as long as there is a steady supply of fuel. However, they are dependent on fuel availability and prices.
• Solar Inverters: Solar inverters offer greater energy independence. With a well-sized battery storage system, they can provide continuous power even during cloudy days or at night.

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When Generators Might Be More Economical

Generators might be more economical in certain situations, such as for short-term use, like construction projects or temporary events. If you have a low initial budget and cannot afford the high upfront cost of a solar inverter system, a generator could be a more viable option. Don’t worry, we are plenty on this train. 

Additionally, in regions with very low sunlight exposure, relying solely on solar power might not be practical without substantial battery storage, which adds to the cost.

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When Solar Inverters Are the Better Choice

• Long-Term Savings: For long-term use, solar inverters offer significant savings on operating costs.
• Environmental Considerations: If reducing your carbon footprint is a priority, solar inverters are the clear choice.
• Noise Sensitivity: Solar inverters are silent, making them ideal for residential areas where noise pollution is a concern.

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Conclusion

Choosing between a generator and a solar inverter depends on your specific needs, budget, and long-term goals. While generators are cheaper upfront and can be useful in certain situations, solar inverters are generally more economical in the long term, environmentally friendly, and provide greater energy independence. Evaluate your requirements and consider both the short-term and long-term implications before making a decision.

By understanding these factors, you can make an informed choice that best suits your power needs and contributes to a sustainable future.

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