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Small-Scale Bitcoin Mining with 5 S23 Antminers and a Generac Natural Gas Generator in San Diego County

For small business owners and independent operators interested in decentralized finance and crypto infrastructure, setting up a home-based Bitcoin mining operation with 5 Antminer S23 units powered by a Generac standby natural gas generator may present a compelling opportunity. Below is a comprehensive breakdown of the numbers, requirements, costs, and considerations involved in building and operating such a system in the unincorporated areas of San Diego County.

1. Overview of the System

This setup includes:

  • 5 × Antminer S23 Air-Cooled Units (318 TH/s each)
  • 1 × 22 kW Generac Guardian Series Natural Gas Standby Generator
  • Dedicated trailer or enclosure for equipment operation
  • Natural gas utility hookup (no propane or gasoline)
  • Basic cooling and sound-dampening infrastructure

2. Antminer S23: Performance & Costs

The Antminer S23 delivers industry-leading performance for an air-cooled unit. It operates at ~3,498 watts and generates 318 TH/s per unit.

  • Price per unit: ~$6,999
  • Total cost for 5 units: $34,995
  • Total power draw: ~17,500 watts (5 × 3.5 kW)
  • Energy efficiency: ~11 J/TH
  • Estimated BTC generation per unit: ~0.00152 BTC/week
  • Total weekly BTC generation (5 units): ~0.0076 BTC
  • Revenue at $105,000/BTC: ~$798/week gross

3. Powering the Operation: Generac Generator Details

The generator selected for this setup is a 22 kW Generac Guardian natural gas model, which is common for whole-home backup installations but well-suited for continuous operation when sized properly.

  • Rated output: 22 kW continuous on natural gas
  • Price: ~$6,200 (includes transfer switch)
  • Natural gas fuel efficiency: ~0.38 USD/gallon equivalent
  • Fuel cost per kWh generated: ~$0.038
  • Runtime capacity: continuous with proper ventilation and fuel flow

4. Electrical and Ventilation Setup

Expect to invest in basic infrastructure, including:

  • Wiring and installation: ~$2,000–$4,000
  • Concrete pad and permits: ~$1,500
  • Basic ventilation fans and ductwork: ~$1,000–$2,000
  • Sound-dampening insulation (optional but recommended): ~$500–$1,000

Total setup/installation cost (generator + environment): ~$6,500 on average.

5. Weekly Operating Income Breakdown

With 5 S23s running at full capacity using generator-supplied electricity:

  • Electricity use per week: ~2,940 kWh (5 × 3.5 kW × 24h × 7 days)
  • Electricity cost at $0.038/kWh: ~$111.72/week
  • Gross mining revenue: ~$798/week
  • Net profit: ~$686/week (not including hardware depreciation)

6. Total Investment Snapshot

  • Antminers (5 units): $34,995
  • Generator (22 kW): $6,200
  • Setup, pad, wiring, cooling: $6,500
  • Total estimated startup cost: ~$47,695

7. Permitting and Legal Considerations in San Diego County

If you’re located in an unincorporated area of San Diego County, here’s what you need to know:

  • Building Permit — Required for stationary generators
  • Electrical Permit — Needed for transfer switch and new circuits
  • Air Quality Permit — Required from SDAPCD for generator emissions
  • Noise Compliance — Must not exceed 45 dBA at the property line for 1 hour

Estimated total permitting costs: $1,050 – $2,250

8. Alternatives to Stationary Installation

If you prefer a more flexible setup:

  • Use a trailer-based enclosure with a portable generator like the Westinghouse WGen20000TFc (20 kW tri-fuel)
  • Portable generators may qualify for reduced permitting under CARB PERP or SDAPCD Rule 12.1
  • Keep trailer mobile and avoid permanent hookups to limit zoning complexity

However, portable generators are often louder, less fuel-efficient, and less reliable for 24/7 workloads compared to stationary standby units.

9. ROI and Payback Period

At $686 weekly profit:

  • Monthly profit: ~$2,744
  • Estimated breakeven (CAPEX ~$47,695): ~17.4 months
  • This assumes BTC stays near $105,000 and equipment runs continuously

10. Final Thoughts and Cautions

On paper, running 5 Antminer S23s from a natural gas generator in San Diego County can yield a profit of over $2,700 per month after energy costs. Over time, this could add up to meaningful passive income. However, this model assumes near-perfect uptime and consistent Bitcoin pricing.

⚠️ You must consider the following before starting:

  • Bitcoin price volatility may impact income dramatically
  • Noise compliance with local ordinances is essential — invest in sound dampening and possibly enclosures with acoustic foam
  • Cooling and airflow are crucial to machine health — overheating can void warranties and cause damage
  • Permits must be secured if operating a stationary generator
  • Portable setups must remain mobile and may still need air-quality registration

Always consult with licensed electricians, local permitting authorities, and fire code inspectors before beginning your installation.

Final Word

This mining setup offers a potential pathway to consistent, decentralized income generation using natural gas infrastructure and modern ASIC equipment. But Bitcoin mining is not a plug-and-play endeavor — it requires careful planning, regulatory awareness, and proper equipment management.

Do your due diligence, model out your energy costs, and ensure compliance with San Diego County rules before launching your crypto mining operation.