How Much Does a 500kW Diesel Generator Actually Cost?
When you’re planning a budget for a major capital expense like a 500kW diesel generator, getting an accurate cost estimate is the first critical step. You’ll often see listings for industrial equipment marked with “Call for Price,” and there’s a good reason for it: a simple price tag would be misleading.
The final cost of a generator isn’t just the unit itself, it’s a complete power solution tailored to your specific needs. The price depends on dozens of variables, from the enclosure and accessories to shipping and emissions requirements. Let’s break down what goes into a final quote and provide real-world price ranges to help you build a confident budget. As specialists who have been providing industrial power solutions for over 50 years, we want to share the insights we give our customers every day.
2025 Price Ranges for a 500kW Generator
Let’s get straight to the point. While the final price depends on many factors, here are the typical price ranges you can expect in 2025:
New 500kW Generator
A new, Tier-4 Final compliant 500kW diesel generator from a top brand typically costs between $120,000 and $180,000.
Used 500kW Generator
A high-quality, low-hour used 500kW diesel generator can typically range from $55,000 to $95,000, often presenting the best overall value. These prices are for the generator set itself. The final, installed cost depends on several key variables, which we’ll cover right now.
5 Key Factors That Determine the Final Price
- New vs. Used & Engine Hours
The most significant price factor is whether you choose a new or used unit. A new generator comes with a full factory warranty and the latest technology, but at the highest upfront cost.
A used generator offers substantial capital savings. When evaluating a used unit, the most critical metric is engine hours. A well-maintained, 5-year-old generator with only 500 hours on it can be a far better value and have a longer remaining lifespan than a 3-year-old unit with 5,000 hours. Always check the service history and load bank test results on a used generator.
- Manufacturer & Brand Reputation
The generator’s brand has a significant impact on cost, reliability, and resale value. While there are many quality manufacturers, the “big three” in the 500kW class are:
- Caterpillar (CAT)
Known for incredibly robust construction and a worldwide service network. They often command the highest price. - Cummins
Renowned for their legendary engine reliability and innovative power generation technology. - Kohler (now Rehlko)
A leader in power systems, known for advanced digital controls and high-quality builds.
- Weather-Proof vs. Open-Skid Enclosures
How the generator is protected from the elements dramatically affects the price. An open-skid unit is mounted on a steel frame with no housing. This results in a lower upfront cost but requires the unit to be installed inside a dedicated, weatherproof room.
An enclosed unit is housed within a weatherproof and often sound-attenuated enclosure. This adds to the upfront cost but allows the generator to be installed outdoors and provides quieter operation.
- The Automatic Transfer Switch (ATS)
For any backup power application, you will need an Automatic Transfer Switch (ATS). The ATS senses when utility power is lost and automatically signals the generator to start, transferring the electrical load to the generator. When utility power returns, it manages the seamless transition back.
The ATS is almost always sold separately from the generator set. For a 500kW system, you should budget an additional $5,000 to $15,000+ for a quality ATS.
- Emissions Certification (EPA Tier Rating)
Modern diesel engines are regulated by the EPA. New generators sold today must be Tier 4 Final compliant, which requires advanced exhaust after-treatment systems. This technology adds significant complexity and cost to new units.
Depending on your location and application (especially for stationary, emergency backup use), you may be able to install a used, earlier-tier generator. This can be a source of major cost savings, but it’s critical to verify your local environmental regulations first.
Beyond the Sticker Price: Total Cost of Ownership
A smart buyer knows the purchase price is only the beginning. To create a truly accurate budget, consider these long-term costs:
- Delivery & Installation: A 500kW generator is a massive piece of equipment. You’ll need to budget for freight shipping, crane services to offload and position the unit, and a qualified electrician for the final connection.
- Fuel Consumption: This will be your primary ongoing operational cost. You can estimate your burn rate by viewing our Diesel Fuel Consumption Chart.
- Preventative Maintenance: Just like a car, your generator needs regular service to ensure it’s ready when you need it most. A professional maintenance plan is a small investment to protect a very large asset.
Get a Quote Tailored to Your Project
As you can see, the final cost of a 500kW generator depends entirely on your specific application, existing infrastructure, and operational needs. While this guide provides a solid baseline for budgeting, the best way to get a precise number is to speak with a power expert. We can assess your project requirements and provide a detailed quote that includes the ideal generator, necessary accessories, and shipping logistics.
Still have questions or looking for more information?
Generator Source specializes in low-hour, used, new, and surplus generator sets. We have a wide variety of generator sizes and models to fit any project. We are not a broker, we own what we sell.
Call us today (877-866-6895) or click Contact Us to be connected with one of our experienced sales reps.
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