There are a few main reasons why the cost of generating electricity from a generator is usually higher than the grid electricity bill:
1.Economies of scale: Larger power stations are often able to take advantage of economies of scale because they can accommodate larger, more efficient power generation equipment and can achieve optimized operation and maintenance. In contrast, individuals or small businesses may only have access to smaller, more expensive power generation equipment that is less efficient and more costly.
2.Energy costs: Large power stations often have access to more competitive energy**, such as volume discounts on raw materials such as coal, natural gas, or oil. In contrast, individual users or small businesses may need to purchase more expensive energy sources or use less economical alternative energy sources such as diesel or LPG.
3.Equipment costs: Large power stations are often able to reduce equipment costs by purchasing and customizing equipment in bulk. In contrast, individual users or small businesses may need to purchase a smaller-scale device with a higher unit cost. In addition, small-scale power generation equipment often requires more frequent maintenance and higher maintenance costs.
4.Operating and maintenance costs: Large power stations are often able to operate and maintain more efficiently because they can employ specialized technicians and engineers, and can implement more efficient maintenance schedules. In contrast, individual users or small businesses may require more time and resources to manage and maintain their power generation equipment, which can lead to higher operating and maintenance costs.
5.Technical and management capabilities: Large-scale power stations often have advanced technology and management capabilities to implement efficient energy conversion and grid operations. In contrast, individual users or small businesses may lack the corresponding technical and management capabilities, resulting in lower energy conversion efficiency and higher costs.
Combined, large power stations are often able to generate electricity at a lower cost, providing cheaper electricity rates for the grid. In contrast, individual users or small businesses use generators to generate electricity, which usually costs more, so their electricity bills are also higher.