Diesel vs Natural Gas vs Propane Generators: Choosing the Best Backup Power for Your Needs in Canada

August 25, 2025 by
Diesel vs Natural Gas vs Propane Generators: Choosing the Best Backup Power for Your Needs in Canada
Natasha Eybel

When the power goes out, the clock starts ticking. Whether you're protecting a business, powering an event, or keeping a critical operation online, choosing the right generator fuel type can make all the difference.

In Canada, the three most common generator options are dieselnatural gas, and propane. Each has its own strengths and limitations, and the right choice depends on your application, location, and operational requirements.

This guide breaks down five key variables that will influence your decision:

  • Reliability
  • Fuel availability
  • Cost and efficiency
  • Environmental impact
  • Maintenance requirements

Understanding these factors will help you choose the right backup power solution. Whether for a short-term rental or a long-term standby application.


Reliability in Emergencies

Reliability is about more than just whether a generator starts, it's about how consistently it performs under real-world conditions, especially during emergencies.

Diesel Generators

Diesel engines are built for durability and high performance. They’re commonly used in critical infrastructure like hospitals, data centres, and emergency response facilities. Diesel generators can handle large, sudden load changes without faltering, making them ideal for applications where uptime is non-negotiable.

In Canada’s harsh winters, diesel generators equipped with block heaters, fuel additives, and cold-weather kits can start reliably even at temperatures below –30°C. Their mechanical simplicity also means fewer points of failure during extended use.

Natural Gas Generators

Natural gas generators offer steady performance as long as they’re connected to a functioning pipeline. In urban areas, this is usually a safe bet. However, in emergencies like earthquakes, floods, or infrastructure failures, gas supply can be disrupted. Facilities that rely heavily on natural gas for heating or manufacturing may face compounded risks if supply is interrupted.

On the plus side, natural gas generators can run indefinitely without refueling, making them attractive for long-term standby applications in stable environments.

Propane Generators

Propane engines are known for reliable cold-weather starts, provided the tanks and regulators are winter-rated. However, propane’s vaporization rate drops significantly in extreme cold, which can reduce available power. This means tank sizing and placement must be carefully planned to ensure consistent output.

Propane is also less sensitive to fuel degradation, making it a good choice for standby systems that may sit idle for months.

Reliability Takeaway:

Consider the environment where the generator will operate, the stability of the fuel source, and the length of time you’ll need it to run without refueling. Diesel is often the most robust option for unpredictable conditions.


Fuel Availability Across Canada

Fuel availability often determines whether your generator is a true emergency solution or just a temporary stopgap.

Diesel

Diesel is widely available across Canada from major cities to remote mining and forestry operations. It can be stored on-site in tanks for months without significant degradation, especially with stabilizers. This makes diesel a reliable choice for both planned and emergency use.

For rental applications, diesel’s portability and storage flexibility make it the go-to option for remote deployments.

Natural Gas

Natural gas is convenient in urban and suburban areas with established pipeline infrastructure. However, it’s not available in most rural or off-grid locations. This limits its use in mobile or temporary applications unless a pipeline connection is already in place.

For permanent installations in cities, natural gas offers a clean and cost-effective fuel source, but it’s not ideal for mobile generators or disaster response.

Propane

Propane is widely available through delivery services in populated areas. In remote locations, delivery may require advance planning and coordination with local suppliers. Propane tanks can be installed on-site for longer projects, but sizing must account for runtime and cold-weather performance.

Unlike natural gas, propane can be stored indefinitely without degradation, making it suitable for seasonal or backup use.

Fuel Takeaway:

Think about where the generator will be used and whether fuel deliveries or storage will be practical, especially during extreme weather or regional emergencies. Diesel offers the most flexibility across Canada.


Cost and Operating Efficiency

Cost considerations include both the price of the fuel and the efficiency of the engine in converting that fuel into usable power.

Diesel

Diesel fuel is energy-dense, delivering around 9.7 kilowatt-hours per litre. Diesel engines operate at higher thermal efficiency than spark-ignition engines, especially under heavy loads. This means more power per litre and lower fuel costs over time.

For example, a diesel generator running at 75% load can produce roughly 3.0 kWh of electricity per litre. Over a 10-hour period at 500 kW, it might consume around 250 litres of fuel.

Natural Gas

Natural gas is typically cheaper per unit of energy, but engines are less efficient. A natural gas generator might produce about 2.2 kWh per litre-equivalent, requiring around 340 litres of fuel-equivalent to match diesel output over 10 hours.

Natural gas pricing can also fluctuate based on regional supply and seasonal demand, which may affect long-term operating costs.

Propane

Propane contains about 6.9 kWh per litre, and propane engines are generally the least efficient of the three. A propane generator might produce 1.8 to 1.9 kWh per litre, requiring around 400 litres to match diesel output over the same runtime.

While propane is often more expensive per litre, its clean-burning nature may offset costs in areas with strict emissions regulations.

Efficiency Takeaway:

Diesel generators offer the best fuel-to-power ratio, especially for high-load, long-runtime applications. Natural gas and propane may be more cost-effective in low-load or regulated environments.


Environmental Impact

Environmental considerations are increasingly important, especially for projects in urban areas or with strict emissions regulations.

Diesel

Older diesel engines emit more particulate matter and nitrogen oxides. However, modern Tier 4 Final diesel generators have significantly reduced emissions through advanced filtration and exhaust treatment systems.

Despite improvements, diesel still produces more CO₂ per kWh than natural gas or propane, making it less attractive for environmentally sensitive projects.

Natural Gas

Natural gas burns cleaner than diesel, with lower CO₂ emissions and minimal particulate matter. It’s often the preferred choice for urban installations and green building projects.

However, natural gas is primarily methane — a potent greenhouse gas. Leaks in the supply chain can offset some of its environmental benefits.

Propane

Propane is one of the cleanest-burning fossil fuels. It produces fewer particulates than diesel and slightly more CO₂ than natural gas. A key advantage is that propane does not contaminate soil or water if spilled, making it safer for environmentally sensitive sites.

Environmental Takeaway:

If emissions are a major concern, check local regulations and consider newer engine technologies. Natural gas and propane are generally cleaner, but diesel can still meet strict standards with the right equipment.


Maintenance Requirements

Maintenance costs and downtime can impact both short-term rentals and long-term standby systems.

Diesel

Diesel engines have a simplified design with no spark plugs or carburetors, reducing maintenance needs. They operate at lower RPMs, which extends engine life and reduces wear.

For rental fleets, diesel’s durability means fewer service interruptions and lower long-term costs.

Natural Gas

Natural gas engines use spark ignition systems, which require more frequent inspections and part replacements. Maintenance intervals are shorter, especially under continuous operation.

However, natural gas engines tend to run cleaner internally, which can reduce buildup and extend component life.

Propane

Propane engines share a similar maintenance profile to natural gas. In cold climates, additional attention is needed for tank and regulator inspections to prevent freezing or pressure drops.

Propane systems also require regular leak checks and valve maintenance to ensure safety.

Maintenance Takeaway:

Diesel generators typically require less frequent maintenance and offer longer service intervals. Natural gas and propane systems may need more attention but can still be reliable with proper care.


Putting It All Together

Selecting the right generator fuel type is about balancing location, runtime, load requirements, fuel access, cost, and environmental goals.

For many Canadian rental applications, especially those in remote or weather-challenged areas, diesel generators offer the best combination of fuel availability, efficiency, and reliability.

However, natural gas and propane have advantages in specific scenarios:

  • Natural gas is ideal for urban standby systems with pipeline access
  • Propane is a clean, stable option for seasonal or low-load applications

At T&T Power Group, we help clients navigate these variables to choose the right generator for their specific needs. Our rental fleet includes diesel, natural gas, and propane units — all maintained to the highest standards and ready for rapid deployment anywhere in Canada.


FAQs

What’s the best generator for a construction site in Canada?

Diesel generators are typically the best choice for construction sites due to their high power output, fuel availability, and rugged design. They perform well in remote areas and harsh weather conditions.

Do I need a permit to rent a generator for a commercial project in Ontario?

Yes, depending on the size and location of the generator, you may need permits for noise, emissions, and fuel storage. Contact your local municipality or visit https://www.ontario.ca/page/environmental-permissions for details.

Can propane generators run in extreme cold?

Yes, but performance may be affected. Propane’s vaporization rate drops in cold temperatures, so tank sizing and placement must be optimized for winter use.

Are natural gas generators safe during emergencies?

They are safe when pipeline infrastructure is intact. However, in large-scale emergencies, gas supply may be interrupted. Always assess local risks before choosing natural gas for critical systems.

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