How a High Quality Transformer Saves You Money in the Long Run

26 May.,2025

 

How a High Quality Transformer Saves You Money in the Long Run

Every business decision should involve some long-term thinking. Spending more for a quality product can end up being a more cost-effective decision in many cases. You probably know this is true for plenty of things, but what about transformers? Not all transformers are created equal. Some transformers can drain you financially, while higher-quality ones can help you save money over time.

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Transformer Life Cycle Analysis

When you’re price-comparison shopping, your first thought may be to look for the product that comes with the lowest price tag. However, experienced shoppers know there’s a lot of truth to the adage, “You get what you pay for.” This principle certainly holds true when it comes to transformers. Some transformers may seem like a great deal at first, but you’ll think differently if the transformer ends up costing you through inefficient operation or premature breakdowns.

If all you look at is the initial purchase price of transformers, you won’t get an accurate idea of how much they’ll cost over the course of their service life. That’s why you should consider a transformer’s life cycle cost, also called total owning cost. In addition to the initial purchase price, a transformer’s total owning cost includes ongoing operating and maintenance costs.

By factoring in these costs, you may find a transformer with a lower price tag will actually cost you more in the long run than a higher-quality option with a higher price tag. In addition to adding all the costs involved, you should divide these costs by the years the transformer is expected to last. This exercise will show just how much lower costs can be when you opt for a transformer with a longer life span.

Why Cheap Transformers Fail

We’ve observed three main issues that cause seemingly more affordable transformers to fail:

  • Poor craftsmanship: Transformers that are made by assembly machines may end up with weaknesses that get missed and lead to issues, including total equipment failures.
  • Low-quality materials: The quality of materials used in a transformer is also important. A manufacturer’s material of choice for insulation and wire can make or break a transformer’s longevity.
  • Inferior design: The design — specifically, how the coils are wound around a transformer’s core — has a major effect on a transformer’s durability over time.

You can avoid these problems when you choose a higher-quality transformer created by expert craftspeople using only the best materials and designs. You’ll pay more for one of these transformers, but you can feel confident that your transformer will last longer and cost you less over time.

How Cheap Transformers Cost You Over Time

When you settle for a cheap transformer, you can expect to run into the issues above. These issues can force you to incur some serious costs that ultimately make the budget choice less cost-effective. There are some direct and indirect sources of cost to consider. The most notable direct costs include:

  • Wasted energy: The Department of Energy (DOE) sets standards for what constitutes a highly efficient transformer. Transformers that don’t meet or exceed these standards are known to experience energy losses you could avoid with an efficient model, racking up higher operating costs over time. The DOE notes that while energy-efficient transformers tend to have a higher purchase price, they also tend to be more cost-effective long-term.
  • Repairs: Transformers that are made with inferior materials or a lack of craftsmanship can also experience more problems that necessitate frequent repairs. The cost to repair a transformer depends on the issue it’s experiencing and the solution needed to fix it. Whatever the problem, these are costs you could avoid with a transformer that offers more dependable service.
  • Replacements: Even more costly than repairs is the cost to replace a transformer that has reached the end of its productive service life. The expected life of transformers is often between 25 and 40 years, so it may surprise you if a transformer you bought just a decade ago seems beyond help. This scenario can occur when you get an unreliable product, especially if it’s poorly installed, landing you with the unexpected expense to get a new transformer.

These costs are likely enough reason to choose your transformer wisely, but the costs don’t stop there. There are also indirect costs you may have to deal with when a cheap transformer fails. This might include costs associated with:

  • Unplanned downtime
  • Damaged company reputation
  • Regulatory fines
  • Civil litigation

If you’re currently dealing with a failing transformer, an emergency replacement can help you keep indirect costs to a minimum by getting you back up and running quickly. In the end, that lower-cost transformer can prove to be more costly than you imagined.

Benefits of High-Quality Transformers

Spending more to purchase a high-quality transformer is a forward-thinking business decision. With a better transformer, some of the benefits you’ll enjoy include:

  • Higher efficiency: With an energy-efficient transformer, you’ll experience lower energy losses, which means lower operating costs. This is also a more environmentally responsible choice, which is important for companies trying to minimize their environmental footprint.
  • Increased reliability: Anyone who has driven an old car that requires frequent trips to the mechanic knows how great it feels to drive a vehicle that’s truly dependable and only needs basic preventive maintenance. The same principle applies with transformers. With a well-made transformer, you can count on it to work as it should without frequent, unplanned maintenance needs.
  • Longer life span: One of the biggest benefits of a high-quality transformer is that it will last longer. This is a key part of what makes these transformers more cost-effective. Instead of spending another chunk of money to replace a transformer that failed too soon, that initial purchase price will get you more years of dependable service life.
  • Lower costs overall: Lower operating and maintenance costs, plus all the indirect costs you avoid with fewer equipment breakdowns, add up to some substantial savings over time. You can also go a lot longer before replacing your transformer.

Get Transformers That Are Made to Last From ELSCO Transformers

When you want a transformer crafted with more than a century of expertise and an unending commitment to quality, trust ELSCO Transformers. Our medium-voltage dry type transformers are reliable and come with an industry-best warranty. Plus, we can repair transformers of any make or model. If you need a replacement transformer on a budget, we can help you find a cost-effective solution you can afford, possibly even a reconditioned or remanufactured transformer we’ve inspected and certified.

If you have questions about how we can help you with your transformer needs, call us at 800-232- or contact us online.

Traditional Transformer Oil vs. Today's Alternative Fluids

The following article was published in Transformer Technology‘s Issue 9. Read the original article here.

Today, most transformers are filled with mineral oil. This has been the case since the late 19th century, when chemist Elihu Thomson, whose company later merged to form General Electric, patented the use of mineral oil in transformers to help disperse heat from the core of a transformer in order to prolong its life. Presently, transformer oils alternative fluids are becoming more and more popular as we look for alternatives that further prolong transformer life, lower environmental risks, and save money.

What Makes These New Natural and Synthetic Oil Alternatives so Popular?

There are a small handful of companies that make natural and synthetic esters, including Cargill, ABB, M&I Materials and GE Prolec, to name a few. By far, one of the most popular alternative fluids in today’s market is Cargill’s FR3. One of the biggest drivers behind the popularity of FR3 and other natural and synthetic esters is the fluid’s high flash point (330°C) and fire point (360°C). This is more than double what mineral oil filled transformers can stand, making them great fluids for both indoor and outdoor transformer placement.

Over the years, the transformer industry has seen little change. The shift in fluids is one of the bigger changes we have seen in years, and there is extreme interest in learning as much as they possibly can about these natural and synthetic ester fluids.

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Another factor driving popularity is their biodegradability. Biodegradable fluids are more suitable for sensitive areas like dams and any property close to water. By choosing these fluids, you will avoid investing large sums of money on containment structures to hold 110% of nameplate gallons. Environmentally speaking, because these fluids are biodegradable, leaks or failures of units will have a much lower environmental impact than what we see with traditional transformer fluid. FR3, for example, contains no petroleum, halogens, silicones, or sulfurs, making the cleanup easier and less expensive than that of typical transformer mineral oils. As a result, this type of fluid is very desirable to insurance companies. For example, companies like FM Global are offering incentives and encouraging some industrial manufacturers to retrofill or replace all their oil filled units with these high fire point, less flammable, natural or synthetic ester fluids.

What About Reliability?

Reliability is very important in today’s electrical energy industry. Natural and synthetic esters are very stable fluids and have a greater cooling capacity than the high-molecular-weight silicone fluids and hydrocarbon dielectric fluids, adding to their desirability. Transformers with thermally upgraded paper and FR3 take about eight times longer to reach end of life criteria than a mineral oil filled transformer.

Oil Testing Process

The testing of FR3 is similar to the way one would test mineral oil – by pulling a good representative sample from the bottom valve of the transformer. The difference is more about the interpretation of the results than the tests themselves. To maximize the life of natural and synthetic ester fluid transformers, you need to maintain the units at low oxygen levels and low moisture levels, just like mineral oil filled transformers.

Gassing

During the first few years, natural esters will generate small amounts of ethane (C2H6; around 200 to 300 ppm). The cause of this is the stray gassing that naturally occurs with these natural ester fluids. This is not an indicator of a localized hot spot in the transformer. The C2H6 emissions should level off after a few years.

One of the biggest drivers behind the popularity of FR3 and other natural and synthetic esters is the fluid’s high flash point (330°C) and fire point (360°C), which is more than double what mineral oil filled transformers can stand.

Moisture Content

One of the biggest enemies to the solid insulation in the transformer is water. Natural and synthetic ester fluids will hold more moisture in the fluid and less moisture in the paper as compared to mineral oil filled transformers, helping to keep the most important part of the transformer, the solid insulation, dry.

For instance, at about room temperature, mineral oil will hold approximately 50 ppm, whereas FR3 will hold around ppm. If you have a high moisture content in your ester fluid filled transformer, the ester fluids will generate acids. These weak, long-chain fatty acids react to form new ester links that put a protective layer over the solid insulation, protecting it from future decay. In oil filled transformers, the oil does not help keep the paper dry. As a matter of fact, the paper can hold hundreds or even thousands of times more moisture than the oil, which results in a very long and drawn out process to dry an oil filled transformer in the field.

Can an Oil Filled Transformer be Retro-filled with Natural Ester Fluid?

Extensive lab testing and field work confirmed that transformers filled with mineral oil and high temperature hydrocarbon fluids (R-Temp) can be retrofilled with natural ester fluids. Performing the retrofill can help slow the transformer aging process, lower the environmental risk, and improve the short-term capability to overload the transformer.

Before you begin, there are a few things you should know. The biggest issue with retrofilling an oil filled unit with FR3 is the draining process. You will never get 100% of nameplate gallons out of the transformer because the winding, core, paper, and cardboard inside the transformer have been absorbing some of the oil over time. While your transformer is being drained, confirm enough of the original fluid is removed from the windings, or you may lower the fire point to below 300°C, making the transformer unacceptable for indoor use. You should also verify that there are no free breathing capabilities by checking that the conservators and nitrogen systems are working properly, and that atmosphere cannot come in contact with the FR3.

Extensive lab testing and field work confirmed that transformers filled with mineral oil and high temperature hydrocarbon fluids can be retrofilled with natural ester fluids. However, if you are topping off a transformer with a different fluid, you need to make sure the two fluids are compatible.

Fluid Compatibility

Some of these transformer fluids are not compatible with each other. Take silicone for example. While you can still buy silicone, it does not mix well with other fluids. If you top off an oil filled transformer with silicone, the two fluids will not be miscible; the fluids inside your transformer will look like a lava lamp – unmixed. Again, if you are topping off a transformer with a different fluid, make sure the two fluids are compatible.Remember that there are quite a few different types of transformer fluids out there, some of which you can no longer purchase. If you have these types of fluids and your transformer develops a leak, you must be very careful when choosing which type of fluid you are going to use to top off your transformer.

Conclusion

Over the years, the transformer industry has seen little change. The shift in fluids is one of the bigger changes we have seen in years, and everyone is extremely interested in learning as much as they possibly can about these natural and synthetic ester fluids. Today, we have many more codes that dictate which type of fluids we can use depending on where we install our transformers (NEC codes, fire prevention codes, etc.).

Mineral oil is still, by far, the most popular fluid for transformers because it is lower in cost and readily available, but is it always going to be available to us? Though the change may not be quick, the natural and synthetic ester fluids market is coming on strong. If you do not have a transformer with one of these fluids, you probably will soon

Southwest Electric Co. is here to assist you with all your transformer and electrical distribution system needs. Ask us about retrofilling your transformers, or contact us with any questions you have. Call or  us now!

The company is the world’s best Oil Transformer supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

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