Bi-Fuel Generator Financing

Bi-fuel generators start on diesel and run on a blend of diesel and natural gas once the engine reaches operating temperature. The result is extended runtime without the fuel storage infrastructure a pure-diesel installation requires. A 500 kW diesel set with a 300-gallon sub-base tank might give you 12 to 18 hours of full-load runtime. The same set fitted with a bi-fuel conversion system can run as long as the gas main stays pressurized, with diesel consumption cut by 50 to 70 percent under steady load.

This matters in hurricane country, wildfire zones, and any region where extended grid outages are a planning scenario rather than a remote possibility. Facilities in Florida, Texas, and the Gulf Coast that need 72-hour or longer ride-through capability are the natural buyers. Hospitals, data centers, and large industrial plants are the most common applications.

We fund bi-fuel generator packages from $50,000 up, including both the base genset and the bi-fuel control system when they're part of a single purchase. New or used, B and C credit considered, typical funding paced to the completed file. The bi-fuel controls are financeable alongside the generator as long as they're installed on the same collateral unit.

A bi-fuel system is an add-on to a conventional diesel generator. It consists of a gas admission valve, a mixing venturi or injection rail, an electronic controller, and the gas pressure regulator and supply piping. The system allows the engine to induct natural gas alongside diesel, reducing diesel pilot fuel to as little as 25 to 35 percent of total fuel input once the engine is warmed up. Compression ignition is maintained by the diesel pilot, which is why bi-fuel engines don't require spark plugs and retain the cold-start reliability of pure diesel.

The two dominant bi-fuel retrofit suppliers in North America are ASCO (now Schneider Electric) and Bi-Fuel Technologies (BFT). Major genset OEMs including Cummins and Caterpillar also offer factory-integrated bi-fuel options on certain frames. Factory-integrated systems command a premium but come with OEM warranty coverage. Retrofit kits are less expensive and widely available for common engine platforms but are typically warranted by the conversion supplier, not the genset OEM.

Pricing depends heavily on generator size. A bi-fuel system on a 200 kW set might add $15,000 to $30,000 over the base genset cost. On a 1,000 kW set, the system adds $50,000 to $100,000. When you're financing the complete package, the bi-fuel controls are bundled with the generator as a single collateral item. We don't require them to be separately scheduled. Compare this with the cost of sub-base fuel tanks sized for equivalent runtime on pure diesel, and the economics of bi-fuel often come out ahead for large installations.

Bi-fuel makes the most sense for buyers who face one or more of these conditions. First: extended outage risk. A facility that plans for 72-hour or longer blackouts, whether because of hurricane exposure in Florida or ice-storm exposure in the Midwest, can't rely on diesel fuel logistics after the first 24 hours. Fuel delivery trucks don't run in active storm conditions. A bi-fuel system that draws from the gas main removes that constraint.

Second: fuel cost during prime-power applications. Facilities running generators as primary or supplemental power sources (off-grid industrial sites, oilfield operations with flare gas available) can reduce diesel operating costs substantially by substituting cheap or free gas for diesel. At $4.00 per gallon diesel, cutting consumption by 60 percent on a 500 kW set running 24/7 represents tens of thousands of dollars per year in fuel savings.

Third: fuel storage limitations. Urban facilities, hospitals in densely populated areas, and buildings with limited exterior space for a large above-ground fuel tank sometimes can't practically store enough diesel for extended outages. A bi-fuel system solves the runtime problem without requiring additional fuel storage permits.

Buyers who shouldn't pay the bi-fuel premium: facilities with reliable gas supply that never need more than 24 hours of runtime, or sites where the gas main is at high risk in the same events that knock out the grid. For the latter, a pure diesel generator with a large sub-base tank is more reliable.

Bi-fuel systems typically push total project costs above $100,000 for any meaningful generator size, which means most transactions land comfortably in our application-only range (up to approximately $400,000). Three months of bank statements and a one-page application handle the majority of deals. The complete system, generator plus bi-fuel controls, is financed as a single transaction with the generator as the primary collateral.

Credit standards are the same as any equipment deal. Strong operating history and consistent bank deposits matter more than a spotless credit score. We've funded contractors, utilities, healthcare systems, and industrial operators with B and C credit profiles when the business cash flow supports the payment. We don't guarantee approval, but we work the deal across multiple lenders to find the best fit.

For buyers using the bi-fuel system to qualify for fuel-efficiency or emissions incentive programs, we can structure financing that accommodates utility rebate timing. Some utilities pay incentives 90 to 180 days after installation, and we can bridge that gap within the deal structure. Ask us about it when you apply. Check whether equipment leasing or a loan better serves your tax position for this type of incentive-eligible purchase.

Tell us the generator kW rating, whether the bi-fuel system is factory-integrated or a retrofit, and your project timeline. We respond the same business day. $50,000 minimum, B and C credit considered.