2026-10-19
An electrical design engineer is specifying a transformer for a photovoltaic step-up substation in a coastal industrial park. The site is 200 meters from the nearest building, and the local fire code requires a 3-hour fire barrier for oil-immersed transformers. The engineer calculates the cost of the fire wall, the oil containment pit, and the annual oil testing. The total adds 35 percent to the transformer budget. The engineer considers a Dry Type Transformer instead. The dry type unit eliminates the oil, the fire wall, and the oil testing. The footprint is 30 percent smaller. The installation is approved by the fire authority without a variance. This guide explains why dry type transformers are the preferred choice for outdoor installation in industrial and commercial projects.
Oil-immersed transformers contain hundreds of liters of flammable mineral oil. If the transformer fails, the oil can ignite and create a pool fire that spreads to adjacent equipment. For this reason, fire codes in most countries require oil-immersed transformers to be installed with a fire barrier, an oil containment pit, and a minimum separation distance from buildings. A Dry Type Transformer contains no flammable liquid. The insulation is cast resin or resin-impregnated paper, which is self-extinguishing and does not support combustion. The fire code requirements for dry type transformers are less stringent, and in many jurisdictions, outdoor dry type transformers do not require a fire barrier or an oil pit. The table below compares the fire safety requirements for the two types.
| Fire safety requirement | Oil-immersed transformer | Dry Type Transformer |
| Fire barrier | Required (2 – 3 hour rating) | Not required |
| Oil containment pit | Required (100% oil volume) | Not required |
| Separation distance from building | 5 – 15 meters | 1 – 3 meters |
| Fire suppression system | Required in some codes | Not required |
| Smoke detection | Required | Recommended |
In our factory, we manufacture Dry Type Transformer units with cast resin insulation that is classified as F1 fire hazard class according to IEC 60076-11. The F1 classification means that the transformer is self-extinguishing and does not emit toxic smoke in the event of a fire. This classification allows the transformer to be installed close to buildings without a fire barrier. Lugao Power Co.,Ltd has been manufacturing dry type transformers for over 15 years and provides fire safety documentation for all of our products.
Outdoor installation exposes the transformer to rain, humidity, dust, and salt spray. An oil-immersed transformer is sealed, but the oil can absorb moisture over time, which reduces the dielectric strength. The bushings and the oil conservator are also vulnerable to contamination. A Dry Type Transformer with a cast resin body is inherently resistant to moisture. The cast resin encapsulates the windings and prevents water ingress. The transformer can be specified with an IP54 or IP65 enclosure for additional protection. The table below shows the environmental protection ratings for outdoor dry type transformers.
| Protection parameter | Standard dry type (IP00) | Outdoor dry type (IP54) | Harsh environment (IP65) |
| Dust protection | None | Dust-tight | Dust-tight |
| Water protection | None | Splash-proof | Jet-proof |
| Salt spray resistance | Poor | Good (with coating) | Excellent (with coating) |
| Typical application | Indoor electrical room | Outdoor pad-mounted | Coastal or industrial |
Design engineer's note: For outdoor installation, we recommend an IP54 enclosure as the minimum. The enclosure protects the windings from rain and dust, and it provides a barrier against accidental contact. For coastal installations, we apply a anti-corrosion coating to the enclosure and use stainless steel hardware. In our factory, we have supplied dry type transformers for offshore platforms and coastal substations with IP65 enclosures. The transformers have operated for 8 years without moisture-related failures.
Oil-immersed transformers require periodic oil testing, oil replacement, and bushing inspection. The oil testing must be performed every 1 to 2 years, and the oil must be replaced every 5 to 10 years. A Dry Type Transformer requires no oil testing. The maintenance consists of visual inspection, cleaning of the windings, and checking the tightness of the connections. The table below compares the maintenance requirements.
| Maintenance activity | Oil-immersed transformer | Dry Type Transformer |
| Oil testing | Every 1 – 2 years | Not required |
| Oil replacement | Every 5 – 10 years | Not required |
| Bushing inspection | Every 2 years | Not required |
| Winding cleaning | Not applicable | Every 2 – 3 years |
| Connection tightness check | Every 2 years | Every 2 years |
| Annual maintenance cost | $3,000 – $8,000 | $1,000 – $3,000 |
In our factory, we recommend a maintenance schedule that includes a visual inspection every 6 months and a winding cleaning every 2 years. The cleaning is performed with a vacuum or with dry compressed air. The connections should be checked for tightness every 2 years. Lugao provides a maintenance manual and a spare parts list with every Dry Type Transformer. We also offer a remote monitoring system that tracks the winding temperature and the load current.
The site preparation for an oil-immersed transformer includes a concrete pad, an oil containment pit, a fire wall, and a cable trench. The site preparation for a Dry Type Transformer includes a concrete pad and a cable trench. The elimination of the oil pit and the fire wall reduces the civil works cost by 30 to 40 percent and the installation time by 2 to 3 weeks. The table below shows the site preparation requirements.
| Site preparation item | Oil-immersed transformer | Dry Type Transformer |
| Concrete pad | Required | Required |
| Oil containment pit | Required | Not required |
| Fire wall | Required (2 – 3 hours) | Not required |
| Cable trench | Required | Required |
| Civil works cost | $15,000 – $25,000 | $8,000 – $12,000 |
| Installation time | 4 – 6 weeks | 2 – 3 weeks |
Project manager's note: The civil works savings from a dry type transformer can be 40 to 50 percent of the total installation cost. For a 1,500 kVA outdoor installation, the civil works for an oil-immersed transformer cost $20,000, while the civil works for a dry type transformer cost $10,000. The dry type transformer also eliminates the need for periodic oil testing, which saves $3,000 to $5,000 per year. Over a 20-year life, the total savings can exceed $100,000.
Dry Type Transformers are ideal for outdoor installation because they eliminate the fire hazard of oil-immersed transformers, resist moisture and contamination, require less maintenance, and reduce civil works costs. The fire safety advantages alone can save 30 to 40 percent of the installation cost by eliminating the fire wall and the oil containment pit. The maintenance savings over a 20-year life can exceed $100,000. When specifying a Dry Type Transformer for outdoor installation, consider the IP rating, the solar exposure, the ambient temperature, and the altitude. Lugao Power Co.,Ltd has been manufacturing dry type transformers for over 15 years and provides full application support for outdoor installations.
Lugao Power Co.,Ltd manufactures Dry Type Transformer units with cast resin insulation, IP54 and IP65 enclosures, and solar shield options. We provide fire safety documentation, altitude correction tables, and maintenance manuals for all of our products.