Skip to content

Standby generators

Standby generators for a business

A standby generator starts on its own when the utility fails and keeps the lights, refrigeration, servers or tills running until power returns. Getting one right is mostly about three things: what it must power, how it connects to the building, and what fuel it can count on in a long outage.

Standby or portable

A standby generator is fixed in place, runs on natural gas, propane or diesel, and starts automatically. A portable generator has to be wheeled out, fueled and connected by hand, and must run outdoors well away from doors and windows because of carbon monoxide. Portables suit a small shop that can live with a manual start. Anything that must keep running with nobody on site needs a standby unit.

Transfer switches

The transfer switch connects the building to either the utility or the generator, never both at once.

  • Automatic transfer switch (ATS). Senses the outage, starts the generator and switches the load over, typically within seconds. Switches back when utility power returns and lets the engine cool down.
  • Manual transfer switch or interlock. Someone flips it. Cheaper, and common with portable generators.
  • Whole-building or selected circuits. A service-rated switch can carry the whole building. A smaller switch feeding a critical-loads panel carries only what you choose, with a smaller generator.

Sizing

Size the generator for the loads it must carry, not for the building's full service. List each load with its running watts, then find the largest motor.

  • Running load. Lighting, computers, refrigeration, point of sale, network gear, pumps and whatever HVAC you need to keep.
  • Starting load. Motors in compressors, air conditioners, pumps and freezers draw several times their running current for a moment when they start. The generator has to absorb the largest of these on top of everything else running. Soft starters on large motors can shrink the generator you need.
  • Three-phase or single-phase. The generator must match your electrical service. Many commercial buildings are three-phase.
  • Headroom. Engines run best well below their maximum rating, and loads grow.

An installer should do a load calculation from your panels, or use a meter to record demand over time. Be wary of a quote that sizes the generator from square footage alone.

Fuel: natural gas, propane or diesel

FuelSupplyStrengthWatch for
Natural gasUtility pipe, no tankNo refueling; fuel does not go staleNeeds adequate gas pressure; supply can be cut in some disasters
PropaneTank on siteStores for years without degradingTank size sets run time; refills in a long outage
DieselTank, often in the baseStrong under heavy and motor loads; common at larger sizesFuel ages and needs testing or treatment; tank and emissions rules

Most small commercial standby units run on natural gas where a gas line is available. Diesel is common where there is no gas service, at larger sizes, and where on-site fuel is wanted in case the gas supply fails. Ask how long the unit runs at your expected load on a full tank, and who refuels it in a long outage.

Permits and rules

  • Electrical permit for the transfer switch and connection, and usually a gas or fuel permit. The installation follows the National Electrical Code as adopted locally; optional standby systems are treated differently from emergency systems that a building code requires.
  • Zoning and placement. Setbacks from property lines, doors, windows and air intakes, and clearances set by the manufacturer. Landlord approval if you lease.
  • Noise ordinances, which often apply to the weekly test run as well.
  • Air quality. Stationary engines fall under EPA emissions rules, and some states and air districts require permits and limit how many hours a unit may run outside an emergency.
  • Fuel storage. Diesel and propane tanks have fire code and, at larger sizes, environmental requirements.

Your installer should pull the permits. Tax treatment of the purchase varies; ask your accountant rather than relying on a sales claim about deductions or credits.

A UPS still matters

Even a fast automatic transfer leaves a gap of several seconds. Computers, servers, phone systems and point-of-sale terminals drop in that gap unless they sit on a UPS. The UPS carries them through the switchover; the generator carries the long outage. Size it with the UPS sizing guide and compare models in the UPS register. Ask for a UPS that tolerates generator power, whose frequency can wander more than the utility's. If you run your own hardware, the servers guide covers shutdown planning.

The costs people miss

  • Installation: the pad, gas line or tank, wiring, transfer switch and permits often rival the generator price.
  • A gas meter or service upgrade if the existing gas supply is too small.
  • A maintenance contract: oil, filters, batteries, coolant and load testing.
  • Fuel for weekly test runs, and diesel testing or polishing.
  • The starting battery, the most common reason a standby generator fails to start.

Before you buy

  1. List what must keep running, and for how long.
  2. Get a load calculation that accounts for the largest motor starting.
  3. Choose whole-building or critical circuits, and an automatic transfer switch.
  4. Pick a fuel you can count on for your longest likely outage.
  5. Confirm permits, placement, noise and air rules with the installer.
  6. Put computers and network gear on a UPS to cover the transfer.
  7. Budget for a maintenance contract and a weekly exercise run.
  8. Never connect a generator without a transfer switch or approved interlock.