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Backup Generator Finance

Finance standby backup generators from £15,000 to £400,000, for business continuity at offices, data centres and critical sites. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a backup generator?

Yes, backup generators are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £15,000 to £400,000, and most deals are written over 12–72 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£15k – £400k

Approval Speed

24–48 hours

Sized to critical load, not peak demand

Rates From

4.8% APR

What would a backup generator cost per month?

£80,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical backup generator price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 5.2% APR
Term
12–72 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own a permanent standby installation

Finance Lease

Rate
From 4.8% APR
Term
12–72 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate
From 5.5% APR
Term
24–60 months
Deposit
None required
Ownership
Return at end
Best for
Off balance sheet, service contract often bundled in

Representative example

On a purchase price of £80,000: a 10% deposit of £8,000, then 48 monthly payments of £1,688 at 5.9% APR representative (fixed). Total amount payable £89,024, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
FG Wilson P150-3 Standby (150kVA) £28,000 – £42,000 Diesel Standby Generator
Cummins C220 D5 Standby (220kVA) £40,000 – £60,000 Diesel Standby Generator
Caterpillar DE300 Standby (300kVA, with ATS) £65,000 – £95,000 Standby Generator + Transfer Switch
Kohler KD2000 Standby (2MVA, Data Centre Grade) £250,000 – £380,000 Critical-Site Standby Generator

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Tax benefits

Standby generators and associated switchgear generally qualify as plant and machinery for capital allowances, so a business can typically set some or all of the cost against taxable profits through the Annual Investment Allowance or other first-year reliefs, subject to your total qualifying spend for the year. Confirm current treatment with your accountant before finalising the finance structure.

Market context

This category covers fixed standby installations for business continuity, distinct from mobile diesel gensets used for construction sites or events, and the typical buyer is a business where a power outage would cause serious operational or safety consequences: data centres, hospitals, care homes, food cold storage, server rooms or manufacturing sites with continuous processes. A standby installation is normally specified with an automatic transfer switch (ATS) so the generator starts and takes over the electrical load within seconds of a mains failure without manual intervention, and sizing is based on the specific critical load that needs to keep running, not the whole site's peak demand, which is why a load audit with an electrical engineer is the right starting point.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

What's the difference between a standby generator and a construction or event generator?
A standby generator is permanently installed at a site, connected through an automatic transfer switch, and sits idle until mains power fails, at which point it starts automatically within seconds. A construction or event generator is typically mobile, providing planned continuous or prime power rather than emergency backup, and is often hired or moved between sites. The two are specified and rated differently, so it's worth being clear which you need before getting quotes.
How is a standby generator sized for my business?
Sizing should be based on your specific critical load, the equipment and circuits that genuinely need to keep running during an outage, rather than your site's total peak demand, which is usually far higher and would mean an oversized, more expensive generator. An electrical engineer or your generator supplier should carry out a load audit identifying exactly what needs backup power before recommending a capacity.
Does the finance agreement usually include the automatic transfer switch and installation?
Yes, most lenders will fund the generator, automatic transfer switch, fuel tank, acoustic enclosure and installation together as one facility, provided everything is itemised on the supplier's invoice. This is generally simpler than financing the generator separately from the switchgear and installation works, and gives you one repayment schedule for the complete, working standby system. For critical sites, it's worth also including any load bank testing or commissioning checks required to prove the system works as specified, since these are sometimes overlooked when a project is quoted in stages rather than as one complete package.
What ongoing maintenance does a standby generator need?
Regular testing (often monthly, under load) and servicing to make sure it will actually start and run when needed, since a standby generator that's never tested can fail exactly when it's called upon during a real outage. Many suppliers offer a maintenance contract alongside the sale, and for critical sites like data centres or hospitals, this ongoing testing regime is arguably as important as the initial specification.
What deposit is needed for standby generator finance?
For hire purchase, most lenders ask for 10–20% deposit. Finance leases and operating leases typically require no deposit. For larger, critical-site installations, lenders will usually want the load audit and full technical specification, including switchgear, confirmed before finalising terms. Where a deposit does apply, it's usually calculated as a percentage of the total invoice including installation, not just the headline equipment price, so it's worth checking exactly what the quoted deposit is based on before comparing offers between suppliers or lenders.

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